New Relic Inc (NYSE:NEWR) Short Interest Down 6.9% in October

New Relic Inc (NYSE:NEWR) was the target of a significant drop in short interest in the month of October. As of October 31st, there was short interest totalling 3,630,000 shares, a drop of 6.9% from the September 30th total of 3,900,000 shares. Approximately 7.4% of the shares of the stock are short sold. Based on an average trading volume of 1,120,000 shares, the days-to-cover ratio is currently 3.2 days.

In related news, CEO Lewis Cirne sold 9,500 shares of the firm’s stock in a transaction that occurred on Tuesday, November 5th. The shares were sold at an average price of $65.76, for a total transaction of $624,720.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO James R. Gochee sold 4,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 12th. The stock was sold at an average price of $60.34, for a total transaction of $241,360.00. Following the sale, the chief technology officer now owns 124,823 shares of the company’s stock, valued at $7,531,819.82. The disclosure for this sale can be found here. Insiders have sold 28,500 shares of company stock worth $1,763,425 in the last quarter. Company insiders own 17.40% of the company’s stock.

Several large investors have recently modified their holdings of the business. Rational Advisors LLC bought a new position in shares of New Relic during the 3rd quarter worth about $251,000. TimesSquare Capital Management LLC lifted its stake in New Relic by 93.5% in the third quarter. TimesSquare Capital Management LLC now owns 608,460 shares of the software maker’s stock valued at $37,390,000 after acquiring an additional 294,025 shares during the last quarter. Catalyst Capital Advisors LLC acquired a new stake in New Relic in the third quarter valued at $640,000. First Trust Advisors LP lifted its stake in New Relic by 22.3% in the third quarter. First Trust Advisors LP now owns 1,854,215 shares of the software maker’s stock valued at $113,942,000 after acquiring an additional 337,891 shares during the last quarter. Finally, Synovus Financial Corp acquired a new stake in New Relic in the third quarter valued at $297,000. 76.82% of the stock is owned by institutional investors.

A number of brokerages recently weighed in on NEWR. Robert W. Baird reduced their target price on shares of New Relic from $84.00 to $77.00 and set an “outperform” rating for the company in a report on Tuesday, September 17th. Morgan Stanley reduced their target price on shares of New Relic from $84.00 to $80.00 and set an “overweight” rating for the company in a report on Tuesday, September 17th. DA Davidson set a $95.00 target price on shares of New Relic and gave the stock a “buy” rating in a report on Thursday, August 29th. Argus upgraded shares of New Relic from a “hold” rating to a “buy” rating and set a $93.00 target price for the company in a report on Monday, August 12th. They noted that the move was a valuation call. Finally, SunTrust Banks started coverage on shares of New Relic in a research note on Wednesday, October 2nd. They issued a “buy” rating and a $80.00 price objective for the company. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and twelve have given a buy rating to the company’s stock. New Relic presently has an average rating of “Buy” and a consensus target price of $83.59.

New Relic stock traded down $0.53 during midday trading on Monday, reaching $66.77. The stock had a trading volume of 5,702 shares, compared to its average volume of 918,202. The firm’s fifty day simple moving average is $62.65 and its two-hundred day simple moving average is $78.58. New Relic has a twelve month low of $50.00 and a twelve month high of $109.00. The company has a debt-to-equity ratio of 1.29, a current ratio of 3.01 and a quick ratio of 3.01. The firm has a market cap of $3.97 billion, a price-to-earnings ratio of -214.71 and a beta of 0.97.

New Relic (NYSE:NEWR) last issued its earnings results on Tuesday, November 5th. The software maker reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.39. The company had revenue of $145.80 million during the quarter, compared to analyst estimates of $143.43 million. New Relic had a negative net margin of 11.26% and a negative return on equity of 8.90%. The company’s revenue for the quarter was up 26.9% on a year-over-year basis. During the same quarter last year, the business posted $0.20 EPS. As a group, sell-side analysts predict that New Relic will post -0.87 EPS for the current fiscal year.

New Relic Company Profile

New Relic, Inc, a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to collect, store, and analyze data. The company offers New Relic Application Performance Management that provides visibility into the performance and usage of server-based applications, such as data pertaining to response time, transaction throughput, error rates, top transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance and health of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications.

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