Splunk Stock Buy Hold or Sell Recommendation

SPLK
 Stock
  

USD 107.50  4.41  3.94%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Splunk Inc is 'Strong Hold'. Macroaxis provides Splunk buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Splunk positions. The advice algorithm takes into account all of Splunk's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Splunk's buy-and-hold perspective. Additionally, take a look at Splunk Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Splunk and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Splunk Inc.

Execute Splunk Buy or Sell Advice

The Splunk recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Splunk Inc. Macroaxis does not own or have any residual interests in Splunk Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Splunk's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell SplunkBuy Splunk
Strong Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon Splunk Inc has a Risk Adjusted Performance of 0.1026, Jensen Alpha of 0.119, Total Risk Alpha of 0.0434, Sortino Ratio of 0.0529 and Treynor Ratio of 0.1328
Macroaxis provides recommendation on Splunk Inc to complement and cross-verify current analyst consensus on Splunk Inc. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Splunk Inc is not overpriced, please validate all Splunk fundamentals, including its price to sales, cash flow from operations, current asset, as well as the relationship between the cash and equivalents and beta . Given that Splunk Inc has a number of shares shorted of 4.68 M, we advise you to double-check Splunk Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Splunk Trading Alerts and Improvement Suggestions

Splunk Inc has very high historical volatility over the last 90 days
The company reported the previous year's revenue of 2.85 B. Net Loss for the year was (1.17 B) with profit before overhead, payroll, taxes, and interest of 1.94 B.
Splunk Inc has a strong financial position based on the latest SEC filings
Over 88.0% of the company shares are owned by institutional investors
Latest headline from www.marketbeat.com: Splunk Receives New Coverage from Analysts at Guggenheim - MarketBeat

Splunk current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Splunk analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Splunk analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price133.05
Target Median Price125.00
Target High Price200.00
Recommendation Mean2.20
Number Of Analyst Opinions30
Target Low Price98.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Splunk Returns Distribution Density

The distribution of Splunk's historical returns is an attempt to chart the uncertainty of Splunk's future price movements. The chart of the probability distribution of Splunk stock daily returns describes the distribution of returns around its average expected value. We use Splunk Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Splunk returns is essential to provide solid investment advice for Splunk.
Mean Return0.30Value At Risk-5.47
Potential Upside6.37Standard Deviation3.91
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Splunk historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Splunk Cash Flow Accounts

201720182019202020212022 (projected)
Net Cash Flow from Financing(101.42 M)1.81 B(100.23 M)382.88 M(136.67 M)(140.27 M)
Net Cash Flow from Investing(38.51 M)(779.28 M)(707.98 M)797.19 M(333.75 M)(360.1 M)
Net Cash Flow from Operations262.9 M296.45 M(287.64 M)(190.86 M)128.05 M103.68 M

Splunk Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Splunk or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Splunk's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Splunk stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.12
β
Beta against DOW2.20
σ
Overall volatility
4.05
Ir
Information ratio 0.05

Splunk Volatility Alert

Splunk Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect Splunk Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Splunk future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Splunk's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Splunk's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Splunk Implied Volatility

Splunk's implied volatility exposes the market's sentiment of Splunk Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Splunk's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Splunk stock will not fluctuate a lot when Splunk's options are near their expiration.

Splunk Fundamentals Vs Peers

Comparing Splunk's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Splunk's direct or indirect competition across all of the common fundamentals between Splunk and the related equities. This way, we can detect undervalued stocks with similar characteristics as Splunk or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Splunk's fundamental indicators could also be used in its relative valuation, which is a method of valuing Splunk by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Splunk to competition
FundamentalsSplunkPeer Average
Return On Equity(401.27) %(0.31) %
Return On Asset(11.93) %(0.14) %
Profit Margin(41.20) %(1.27) %
Operating Margin(35.25) %(5.51) %
Current Valuation19.36 B16.62 B
Shares Outstanding158.79 M571.82 M
Shares Owned by Insiders0.68 %10.09 %
Shares Owned by Institutions88.41 %39.21 %
Number of Shares Shorted4.68 M4.71 M
Price to Earning(31.35) X28.72 X
Price to Book100.01 X9.51 X
Price to Sales6.24 X11.42 X
Revenue2.85 B9.43 B
Gross Profit1.94 B27.38 B
EBITDA(906.5 M)3.9 B
Net Income(1.17 B)570.98 M
Cash and Equivalents1.45 B2.7 B
Cash per Share9.00 X5.01 X
Total Debt4.08 B5.32 B
Current Ratio1.45 X2.16 X
Book Value Per Share1.12 X1.93 K
Cash Flow from Operations200.74 M971.22 M
Short Ratio2.62 X4.00 X
Earnings Per Share(8.24) X3.12 X
Price to Earnings To Growth(10.81) X4.89 X
Number of Employees7 K18.84 K
Beta1.35-0.15
Market Capitalization17.77 B19.03 B
Total Asset1.54 B29.47 B
Retained Earnings(785.58 M)9.33 B
Working Capital719.5 M1.48 B
Current Asset1.22 B9.34 B
Current Liabilities497.77 M7.9 B
   Sale by Bice Shawn of 2772 shares of Splunk [view details]

Splunk Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Splunk . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Splunk Buy or Sell Advice

When is the right time to buy or sell Splunk Inc? Buying financial instruments such as Splunk Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable18.94 M9.32 M59.21 M63.88 M
Receivables838.74 M1.11 B1.31 B1.41 B

Use Investing Ideas to Build Portfolios

In addition to having Splunk in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Energy Thematic Idea Now

Energy
Energy Theme
Funds or Etfs investing in energy sector, natural resources, and ecology. The Energy theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Energy Theme or any other thematic opportunities.
View All  Next Launch
Additionally, take a look at Splunk Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Splunk Inc information on this page should be used as a complementary analysis to other Splunk's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Complementary Tools for Splunk Stock analysis

When running Splunk Inc price analysis, check to measure Splunk's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Splunk is operating at the current time. Most of Splunk's value examination focuses on studying past and present price action to predict the probability of Splunk's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Splunk's price. Additionally, you may evaluate how the addition of Splunk to your portfolios can decrease your overall portfolio volatility.
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Is Splunk's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Splunk. If investors know Splunk will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Splunk listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
17.6 B
Quarterly Revenue Growth YOY
0.34
Return On Assets
-0.12
Return On Equity
-4.01
The market value of Splunk Inc is measured differently than its book value, which is the value of Splunk that is recorded on the company's balance sheet. Investors also form their own opinion of Splunk's value that differs from its market value or its book value, called intrinsic value, which is Splunk's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Splunk's market value can be influenced by many factors that don't directly affect Splunk's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Splunk's value and its price as these two are different measures arrived at by different means. Investors typically determine Splunk value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Splunk's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.