TD Cowen has recently reiterated Pure Storage Inc (PSTG) stock to Buy rating, as announced on August 29, 2024, according to Finviz. Earlier, on August 29, 2024, Needham had reiterated the stock to Buy, setting a price target of $62 for PSTG stock. Piper Sandler also initiated Neutral rating with a price target of $60. Additionally, UBS reduced Sell rating on July 2, 2024, with a target price of $47. Morgan Stanley analysts, in their report published on June 12, 2024, also reduced their rating and set a price target of $60 for Pure Storage Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Pure Storage Inc (PSTG) Stock Trading Recap
On Friday, Pure Storage Inc (PSTG) stock saw a modest uptick, ending the day at $53.2 which represents a slight increase of $0.11 or 0.21% from the prior close of $53.09. The stock opened at $52.83 and touched a low of $52.61 during the day, reaching a high of $53.74. The volume of shares traded was 2.60 million falling short of the average volume of 2.94 million.
PSTG Stock Performance and Moving Averages
In recent trading, Pure Storage Inc (PSTG) stock price has shown some volatility, fluctuating 3.83% over the last five trades and 10.24% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -0.43%, and it has plunged by -19.16% in the previous three months. Currently, PSTG is trading at 5.07%, 0.08%, and 0.78% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, PSTG, a Technology sector stock, is trading -24.44% below its 52-week high but remains 71.61% above its 52-week low. The Average True Range (ATR) (14 days) of 1.52 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Pure Storage Inc’s Profitability and Valuation Ratios
Pure Storage Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 4.90% and a profit margin of 4.53%, with a gross margin of -0.43%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Pure Storage Inc’s market capitalization stands at $17.43 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 131.16, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 28.93. Additionally, the Price-to-Sales Ratio is 5.79, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 11.99, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 5.50% of Pure Storage Inc (PSTG)’s shares, while financial institutions hold 85.11%.
Notable insider trades include Chu Mona, Chief Accounting Officer at Pure Storage Inc (PSTG), who sold 20647 shares on Oct 07 ’24, at $51.5 each, totaling $1.06 million. On Oct 04 ’24, Colgrove John, Chief Visionary Officer, sold 100000 shares for $51.01 each, amounting to $5.10 million. Additionally, on Sep 25 ’24, Chu Mona sold 25000 shares at $50.32 each, generating $1.26 million.
