Pure Storage (PSTG) Stock Price Down 24.8% After Earnings Miss

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Pure Storage Inc (NYSE:PSTG) dropped 24.8% during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $15.42 and last traded at $15.50. Approximately 25,860,817 shares changed hands during mid-day trading, an increase of 657% from the average daily volume of 3,414,922 shares. The stock had previously closed at $20.60.

The technology company reported ($0.37) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.29) by ($0.08). The firm had revenue of $326.70 million for the quarter, compared to analyst estimates of $333.83 million. Pure Storage had a negative net margin of 13.12% and a negative return on equity of 22.64%.

A number of research analysts recently issued reports on the stock. Morgan Stanley decreased their price objective on shares of Pure Storage from $22.00 to $21.00 and set an “equal weight” rating for the company in a report on Wednesday. Wells Fargo & Co decreased their price objective on shares of Pure Storage from $30.00 to $26.00 and set an “outperform” rating for the company in a report on Wednesday. Stifel Nicolaus decreased their price objective on shares of Pure Storage from $22.00 to $20.00 and set a “hold” rating for the company in a report on Wednesday. Credit Suisse Group restated a “neutral” rating and set a $18.00 price objective (down previously from $23.00) on shares of Pure Storage in a report on Wednesday. Finally, Cowen restated an “outperform” rating and set a $28.00 price objective (down previously from $30.00) on shares of Pure Storage in a report on Wednesday. Eight investment analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus target price of $25.09.

In other Pure Storage news, CFO Timothy Riitters sold 5,210 shares of Pure Storage stock in a transaction that occurred on Tuesday, March 12th. The shares were sold at an average price of $19.92, for a total value of $103,783.20. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Scott Dietzen sold 100,000 shares of Pure Storage stock in a transaction that occurred on Wednesday, April 24th. The shares were sold at an average price of $23.05, for a total transaction of $2,305,000.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 564,260 shares of company stock worth $11,880,961. Insiders own 10.00% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in PSTG. Eminence Capital LP bought a new position in Pure Storage in the first quarter valued at approximately $113,599,000. William Blair Investment Management LLC lifted its position in shares of Pure Storage by 27.9% in the first quarter. William Blair Investment Management LLC now owns 12,650,885 shares of the technology company’s stock worth $275,663,000 after purchasing an additional 2,761,026 shares in the last quarter. FMR LLC lifted its position in shares of Pure Storage by 15.4% in the first quarter. FMR LLC now owns 18,219,508 shares of the technology company’s stock worth $397,003,000 after purchasing an additional 2,428,068 shares in the last quarter. JPMorgan Chase & Co. lifted its position in shares of Pure Storage by 262.1% in the first quarter. JPMorgan Chase & Co. now owns 2,896,951 shares of the technology company’s stock worth $63,125,000 after purchasing an additional 2,097,011 shares in the last quarter. Finally, Vanguard Group Inc lifted its position in shares of Pure Storage by 14.4% in the third quarter. Vanguard Group Inc now owns 15,371,526 shares of the technology company’s stock worth $398,892,000 after purchasing an additional 1,933,591 shares in the last quarter. 73.63% of the stock is currently owned by hedge funds and other institutional investors.

The company has a current ratio of 3.34, a quick ratio of 3.25 and a debt-to-equity ratio of 0.61. The stock has a market capitalization of $5.05 billion, a P/E ratio of -22.14 and a beta of 1.71.

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Pure Storage Company Profile (NYSE:PSTG)

Pure Storage, Inc engages in building a data platform that enables businesses to enhance performance and reduce complexity and costs worldwide. The company delivers its data platform through Purity Operating Environment, an optimized software for solid-state memory that offers enterprise-class storage and protocol services; FlashArray and FlashBlade optimized hardware products for solid-state memory to enhance the performance and density of flash, optimize its advanced software services, and reduce solution cost for customers; Pure1, a cloud-based management and support software; and FlashStack and Artificial Intelligence Ready Infrastructure converged infrastructure solutions.

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