Splunk: A solid reason

Splunk in the chart technical evaluation

The 200-day line (GD200) of Splunk currently runs at 102.05 USD. This gives the stock a “Sell” rating, insofar as the share price itself exited trading at $77.68, building a gap of -23.88 percent. The relationship is different compared to the moving average price of the past 50 days. The GD50 has currently assumed a level of $78.23. This, in turn, corresponds to the current -0.7 percent gap for Splunk stock, which is a “hold” signal. Accordingly, the overall finding based on the two time periods is “Hold”.

Analysts praise Splunk

On a long-term basis, analysts rate Splunk stock as a “Buy” stock. For out of a total of 18 analysts, these ratings were19 Buy, 6 Hold, 0 Sell. In reports of more recent date, the analysts come to the same assessment on average – on balance, the rating for the Splunk stock from the last month is “Buy” (5 Buy, 2 Hold, 0 Sell). On average, the analysts expect a price target of 129.64 USD. This results in an expectation of 66.89 percent, as the closing price is currently USD 77.68, which corresponds to a “Buy” rating. Based on all analyst estimates, we therefore assign a “Buy” rating.

Price Rating Using RSI

Based on the Relative Strength Index, Splunk stock is a Hold stock. The index measures the upward and downward movements of different time periods (RSI7 for seven days, RSI25 for 25 days) and assigns them a ratio between 0 and 100. For the Splunk share, this results in a value for the RSI7 of 46.43, which entails a “Hold” recommendation, and a value for the RSI25 of 55.19, which entails a “Hold” rating for this period. This results in an overall “Hold” ranking at the Relative Strength Indicator level.

The sentiment picture could be better

In addition to the analyses from banking houses, the long-term sentiment picture among investors and users on the Internet is also a yardstick for the sentiment around shares. The number of posts over a longer period of time, as well as changes in sentiment, provide a good long-term picture of sentiment. We analyzed Splunk’s stock for these two factors. The post count or discussion intensity showed strong activity, from which we believe a “buy” rating can be generated. The rate of change in sentiment for Splunk experienced a negative change during this period. This corresponds to a “Sell” rating. To that extent, we give Splunk’s stock a “Sell” rating with respect to the long-term sentiment picture.

Share loses to peers

Splunk posted a performance of -56.63 percent over the past 12 months. Similar stocks in the “software” sector have risen an average of 84.28 percent, giving Splunk an underperformance of -140.91 percent compared to its peers. The “Information Technology” sector had a median return of 57.46 percent over the past year. Splunk was 114.09 percent below that average. The underperformance in both the industry and sector comparisons leads to a “Sell” rating in this category.