New Relic, Inc. (NYSE:NEWR) has been receiving a consensus rating of “Moderate Buy” from sixteen ratings firms that cover the company. According to Bloomberg Ratings reports, of the ratings issued by these firms, seven recommend holding while six recommend buying the stock and one recommends a strong buy. The average twelve-month price objective in 2023 for the shares is $79.80.
New Relic, Inc. offers software solutions and an open cloud-based platform capable of collecting, storing and analyzing vast amounts of data in real-time, thereby improving the operations of applications and infrastructure in e-commerce & retail, media, and public sector industries.
In other news for New Relic Inc., COO Kristy Friedrichs sold 2,673 shares at an average price of $84.05 per share on Thursday 18th May 2023 – valued at approximately $224K following this transaction. Thereafter, Kristy Friedrichs now holds19k equity shares approximately as disclosed with SEC reporting requirements.
Furthering newsworthy developments for New Relic Inc., CEO William Staples also sold 23k shares at an average price of $70.19 per share on Wednesday May 03rd worth approximately $1.6MM USD ($1,657,396 USD). Given that information is already public domain through SEC filings information gathering capabilities online for its shareholders; this declaration follows regulatory filing guidelines initiated by industry participants some years back.
The SEC regulates Insider Trading activities as such declarations enable stakeholders to make informed economic forecasts on future earnings performance attributes or underlying market risks applicable to said securities within their portfolio holdings; sharing a fourteen-day email notification rule prohibiting trades within confidential ‘Blackout Window’ periods most commonly defined before filing quarterly earning outcomes reports such as Q3 October- November period this year some days ago.
Recent insider sales have extended out globally impacting nearly over US$30 million worth of stocks liquidated in less than ninety days. Insiders hold 21% of the company’s stock. This is significant as it signals that insiders may believe that the shares are overvalued and may decline soon.
To sum up, New Relic, Inc. (NYSE:NEWR) has been receiving favorable ratings from rating firms. Regulators demand timely disclosures from insider trading activities to guarantee transparency, manage risk exposures to Company equity holdings non-biasedly while protecting economies from market manipulation engaging all stakeholders equitably assuring efficiency, transparency & economic resources conservation.
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New Relic Receives Positive Feedback and Attracts Institutional Investor Attention
New Relic, a software company, has recently received positive feedback from several research analysts. Raymond James, Credit Suisse Group, Wedbush, Morgan Stanley, and BMO Capital Markets all increased their target prices on the company in reports released earlier this year. This garnered attention from institutional investors and hedge funds.
On Thursday, May 25th, New Relic opened at $79.75. The company’s market capitalization is currently $5.49 billion with a price-to-earnings ratio of -29.76 and a beta of 0.90. New Relic has a one-year low of $42.40 and a one-year high of $86.00.
The recent positive outlook on the company has attracted the attention of various institutional investors and hedge funds who have purchased shares of New Relic stock in recent months. Belpointe Asset Management LLC purchased a new position in New Relic valued at $29,000 during the fourth quarter. Bourgeon Capital Management LLC also purchased a new position valued at $42,000 during the same period.
Additionally, PNC Financial Services Group Inc., Iron Horse Wealth Management LLC, and Harvest Fund Management Co. Ltd all acquired positions in New Relic during the last quarter as well. PNC Financial Services Group Inc.’s position in New Relic rose by 78.4%, while Harvest Fund Management Co.’s position surged by 303%.
Overall, approximately 83% of the stock is currently owned by institutional investors and hedge funds alike.
Institutional investing involves large sums of money being invested into companies with long-term strategies in mind. These types of investments can signal investor confidence in that particular firm which could lead to higher investor demand for their securities.
It remains to be seen whether these purchases will result in further upward momentum for New Relic or if caution on behalf of investors will edge out any future growth hopes for the company. The coming months will reveal how New Relic’s fortunes will fare.
