Acquisition and Price Target Increase: Scotiabank raised the price target for SolarWinds (SWI) to $18.50 from $15, maintaining a Sector Perform rating following the announcement of Turn/River Capital's acquisition of the company. This indicates positive market sentiment and analyst confidence in SWI's future prospects.
Squadcast Acquisition: SolarWinds' acquisition of Squadcast is expected to enhance its incident response capabilities, potentially improving operational efficiency and attracting more customers. This strategic move could positively impact the stock price.
Investigation into Fair Price: Ademi & Fruchter LLP is investigating whether SolarWinds is obtaining a fair price for its public shareholders in the transaction with Turn/River Capital. This introduces some uncertainty but does not currently appear to be impacting the stock price significantly.
Current Price and Trends: SolarWinds (SWI) closed at $18.29 on March 12, 2025, with a slight decline of 0.05% during regular market hours. The stock has shown moderate trading volume, indicating stable investor interest.
RSI and MACD Analysis: The Relative Strength Index (RSI) for SWI is at 60.33 (RSI_6), 77.05 (RSI_12), and 77.70 (RSI_14), indicating that the stock is in a bullish zone but not yet overbought. The MACD line is slightly above the signal line, suggesting a weak bullish trend.
Fibonacci Levels: The Fibonacci pivot point is at $18.31, with resistance levels at $18.37 (R1) and $18.41 (R2), and support levels at $18.25 (S1) and $18.21 (S2). These levels suggest that the stock may face resistance around $18.37 in the short term.
Bollinger Bands: The stock is trading near the upper Bollinger Band (20, 3), indicating potential volatility but not yet overbought conditions.
Based on the analysis of news sentiment, technical indicators, and the current price action, the stock is expected to trade in a narrow range with a slight bullish bias. The acquisition news and price target increases from analysts suggest positive momentum, while the technical indicators show a stable trend.
Predicted Price Range for Next Trading Week: $18.21 to $18.41.
Recommendation: BUY with a target price of $18.37 and a stop-loss at $18.21.
The price of SWI is predicted to go up 0.32%, based on the high correlation periods with KELYB. The similarity of these two price pattern on the periods is 99.95%.
SWI
KELYB
Truist Securities
2025-02-10
Price Target
$13 → $19
Upside
+1.04%
Baird
2025-02-10
Price Target
$15 → $19
Upside
+1.04%
Scotiabank
2025-01-21
Price Target
$13 → $15
Upside
+4.53%