Splunk Inc (SPLK) stock dipped -20.6% to $163.1 in pre-market trading on December 3, 2020, and investors may want to take that as a cautionary sign.
Splunk, the global leader in computer data processing, posted a loss in fiscal Q3 2021 for the third straight quarter and poor guidance for the January quarter, taking its shares down on Wednesday by about 19 percent in trading today.
The information platform provider posted $559 million sales, down 11 percent year-over-year, missing the $613 million Wall Street forecast.
Splunk’s loss widened to $1.26 a share from 38 cents a share in the same quarter last year. On an adjusted basis, Splunk posted a loss of 7 cents per share, under industry estimates of 9 cents of profit.
With a strong estimate of $301.00 and a low forecast of $165.00, fourteen stock experts predicted the share price at $241.67 in 12 months. A 17.37 percent gain from the last price of $205.91 reflects the average price target. Of those 14 analysts, according to Tipranks, 11 ranked “Buy,” two rated “Hold,” and one rated “Sell.”
Stock’s base target price of $270 was offered by Morgan Stanley, with a high of $363 under a bull-case scenario and $172 under the worst-case scenario. The brokerage has an “Overweight” ranking on the portfolio of the tech business. Berenberg has increased the stock price outlook from $247 to $260.