New Relic (NYSE:NEWR) Downgraded to Hold at ValuEngine

ValuEngine downgraded shares of New Relic (NYSE:NEWR) from a buy rating to a hold rating in a research note published on Wednesday, ValuEngine reports.

A number of other research firms have also issued reports on NEWR. Zacks Investment Research lowered shares of New Relic from a hold rating to a sell rating in a report on Tuesday, May 21st. Wedbush restated an outperform rating and issued a $124.00 target price on shares of New Relic in a report on Wednesday, February 27th. Needham & Company LLC restated a buy rating and issued a $131.00 target price (up from $129.00) on shares of New Relic in a report on Wednesday, May 15th. Finally, Goldman Sachs Group started coverage on shares of New Relic in a report on Friday, June 7th. They issued a sell rating and a $83.00 target price on the stock. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company’s stock. New Relic has a consensus rating of Buy and an average price target of $115.17.

Shares of NYSE NEWR opened at $96.46 on Wednesday. The stock has a market capitalization of $5.54 billion, a P/E ratio of -311.16 and a beta of 1.03. New Relic has a 52 week low of $70.30 and a 52 week high of $114.78. The company has a debt-to-equity ratio of 1.16, a quick ratio of 2.90 and a current ratio of 2.90.

New Relic (NYSE:NEWR) last issued its quarterly earnings data on Tuesday, May 14th. The software maker reported $0.13 EPS for the quarter, beating the Zacks’ consensus estimate of $0.06 by $0.07. The firm had revenue of $132.10 million for the quarter, compared to analysts’ expectations of $128.19 million. New Relic had a negative net margin of 8.53% and a negative return on equity of 6.57%. The firm’s revenue was up 34.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.09 EPS. As a group, equities research analysts expect that New Relic will post -0.56 earnings per share for the current year.

In related news, CEO Lewis Cirne sold 21,000 shares of New Relic stock in a transaction dated Thursday, May 2nd. The stock was sold at an average price of $104.75, for a total value of $2,199,750.00. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider James R. Gochee sold 4,000 shares of New Relic stock in a transaction dated Wednesday, June 12th. The stock was sold at an average price of $95.50, for a total value of $382,000.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 161,750 shares of company stock worth $16,052,840. 20.40% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently modified their holdings of NEWR. Vanguard Group Inc grew its stake in New Relic by 11.5% during the 3rd quarter. Vanguard Group Inc now owns 4,552,159 shares of the software maker’s stock valued at $428,950,000 after acquiring an additional 468,506 shares in the last quarter. Bank of Montreal Can grew its stake in New Relic by 70.2% during the 4th quarter. Bank of Montreal Can now owns 2,802 shares of the software maker’s stock valued at $226,000 after acquiring an additional 1,156 shares in the last quarter. IFP Advisors Inc grew its stake in New Relic by 1,120.3% during the 4th quarter. IFP Advisors Inc now owns 720 shares of the software maker’s stock valued at $58,000 after acquiring an additional 661 shares in the last quarter. Oppenheimer Asset Management Inc. purchased a new position in New Relic during the 4th quarter valued at about $487,000. Finally, Rhumbline Advisers grew its stake in New Relic by 48.0% during the 4th quarter. Rhumbline Advisers now owns 60,113 shares of the software maker’s stock valued at $4,867,000 after acquiring an additional 19,499 shares in the last quarter. 79.55% of the stock is currently owned by hedge funds and other institutional investors.

New Relic Company Profile

New Relic, Inc, a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to collect, store, and analyze data. The company offers New Relic Application Performance Management that provides visibility into the performance and usage of server-based applications, such as data pertaining to response time, transaction throughput, error rates, top transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance and health of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications.

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