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Pure Storage (NYSE: PSTG) – Ready to Burn the Shorts?

Time to Buy Pure Storage Inc.? – Nasdaq ticker: PSTG

Pure Storage, Inc., headquartered in Mountain View, California invented all-flash enterprise storage. It operates primarily in the United States, Europe, and Asia. The company serves cloud-based software and service providers, e-commerce, education, energy, financial services, governments, healthcare, manufacturing, media, retail, and telecommunications sectors.

Recently the website InsiderMonkey.com claimed that PSTG is the #1 stock pick of the hedge fund community. They write “At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 21% from the second quarter of 2016. On the other hand, there were a total of 14 hedge funds with a bullish position in PSTG at the beginning of this year.” Investors should take note, however, that there appears to be large short positions on PSTG.

Over ten Wall St. investment banks provide coverage on Pure Storage Inc. including JP Morgan, Susquehanna, UBS, and Barclay’s. Their current reported ratings range from “Hold” to “Buy” with price targets ranging from $11 to $27. Yesterday, Thursday December 8, 2016, PSTG closed at $12.33.

While PSTG’s historical EPS was negative and falling, their most recently disclosed numbers saw a narrowing of EPS loss – beating street estimates. Pure Storage reported its Q3 earnings results on Wednesday, November 30th. The company reported a loss of $0.10 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of -$0.15 by $0.05. The company earned $197 million during the quarter, compared to analyst estimates of $192.36 million. Sales have not been a concern for holders of PSTG. In 2014 sales were a reported $$42.7 million growing to over $440 million in 2016.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol PSTG
Last Price 12/8/2016 2:25 EST  $             12.33
Average Volume 1.1 million
Market Cap 2.4 Billion
Sales $650 million
Shares Outstanding 192.8 million
Share Float 71.3 million
Shortable Yes
Optionable Yes
Inside Ownership
Short Float 23.55%
Short Interest Ratio 14.54
Quarterly Return 1.23%
YTD Return 20.80%
Year Return -29.78%

 

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Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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