New Relic (NEWR) Lifted to Strong-Buy at First Analysis

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New Relic (NYSE:NEWR) was upgraded by investment analysts at First Analysis from an “outperform” rating to a “strong-buy” rating in a research report issued to clients and investors on Wednesday, The Fly reports.

Other equities analysts have also recently issued reports about the stock. DA Davidson raised shares of New Relic from a “neutral” rating to a “buy” rating and set a $105.00 price objective for the company in a research report on Tuesday, October 23rd. They noted that the move was a valuation call. Needham & Company LLC lifted their price objective on shares of New Relic from $121.00 to $129.00 and gave the stock a “buy” rating in a research report on Wednesday, August 8th. ValuEngine cut shares of New Relic from a “strong-buy” rating to a “buy” rating in a research report on Monday, July 30th. Zacks Investment Research raised shares of New Relic from a “hold” rating to a “buy” rating and set a $118.00 target price for the company in a research report on Tuesday, August 14th. Finally, TheStreet raised shares of New Relic from a “d” rating to a “c” rating in a research report on Thursday, August 23rd. Eight equities research analysts have rated the stock with a hold rating, ten have given a buy rating and two have assigned a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average price target of $97.00.

NEWR stock opened at $86.07 on Wednesday. The company has a debt-to-equity ratio of 1.28, a current ratio of 3.83 and a quick ratio of 3.83. New Relic has a one year low of $50.27 and a one year high of $114.78. The firm has a market cap of $4.92 billion, a price-to-earnings ratio of -116.31 and a beta of 0.82.

New Relic (NYSE:NEWR) last released its quarterly earnings data on Tuesday, November 6th. The software maker reported $0.20 EPS for the quarter, topping the Zacks’ consensus estimate of $0.12 by $0.08. New Relic had a negative net margin of 9.13% and a negative return on equity of 12.19%. The firm had revenue of $114.90 million during the quarter, compared to analysts’ expectations of $112.26 million. During the same period in the previous year, the business posted ($0.06) earnings per share. The company’s revenue for the quarter was up 35.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that New Relic will post -0.38 earnings per share for the current fiscal year.

In related news, CFO Mark Sachleben sold 7,500 shares of the company’s stock in a transaction dated Thursday, August 9th. The shares were sold at an average price of $102.75, for a total transaction of $770,625.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Peter H. Fenton sold 51,971 shares of the company’s stock in a transaction dated Wednesday, September 12th. The stock was sold at an average price of $109.45, for a total transaction of $5,688,225.95. Following the sale, the director now directly owns 154 shares of the company’s stock, valued at approximately $16,855.30. The disclosure for this sale can be found here. In the last three months, insiders sold 435,742 shares of company stock valued at $41,658,041. 20.40% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Tower Research Capital LLC TRC lifted its position in New Relic by 95.1% during the second quarter. Tower Research Capital LLC TRC now owns 1,198 shares of the software maker’s stock worth $121,000 after purchasing an additional 584 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in New Relic by 43.0% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,553 shares of the software maker’s stock worth $257,000 after purchasing an additional 768 shares during the period. Xact Kapitalforvaltning AB lifted its position in New Relic by 24.8% during the first quarter. Xact Kapitalforvaltning AB now owns 5,037 shares of the software maker’s stock worth $373,000 after purchasing an additional 1,000 shares during the period. Gagnon Advisors LLC lifted its position in New Relic by 1.4% during the second quarter. Gagnon Advisors LLC now owns 80,392 shares of the software maker’s stock worth $8,087,000 after purchasing an additional 1,071 shares during the period. Finally, Teacher Retirement System of Texas lifted its position in New Relic by 15.3% during the second quarter. Teacher Retirement System of Texas now owns 8,431 shares of the software maker’s stock worth $848,000 after purchasing an additional 1,120 shares during the period. 76.96% of the stock is owned by institutional investors and hedge funds.

About New Relic

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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