SecureWorks (NASDAQ:SCWX) Sees Large Volume Increase – Should You Buy?

SecureWorks Corp. (NASDAQ:SCWX) shares saw strong trading volume on Monday . 108,307 shares were traded during mid-day trading, an increase of 61% from the previous session’s volume of 67,234 shares.The stock last traded at $8.38 and had previously closed at $8.37.

Analyst Upgrades and Downgrades

Several research firms have commented on SCWX. Barclays boosted their target price on SecureWorks from $6.00 to $7.00 and gave the company an “underweight” rating in a research note on Friday, September 6th. Needham & Company LLC reissued a “hold” rating on shares of SecureWorks in a research report on Tuesday, October 22nd.

SecureWorks Price Performance

The company has a market capitalization of $739.93 million, a price-to-earnings ratio of -7.90 and a beta of 0.99. The stock has a 50-day moving average price of $7.98 and a 200-day moving average price of $7.09.

SecureWorks (NASDAQ:SCWX) last posted its quarterly earnings results on Thursday, September 5th. The technology company reported ($0.10) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.05). SecureWorks had a negative net margin of 21.23% and a negative return on equity of 4.94%. The business had revenue of $82.18 million during the quarter, compared to the consensus estimate of $80.98 million. Equities analysts forecast that SecureWorks Corp. will post -0.29 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Squarepoint Ops LLC acquired a new position in SecureWorks in the 2nd quarter valued at $121,000. Jaffetilchin Investment Partners LLC bought a new stake in SecureWorks during the second quarter worth about $127,000. Oppenheimer Asset Management Inc. grew its stake in SecureWorks by 107.0% during the second quarter. Oppenheimer Asset Management Inc. now owns 38,180 shares of the technology company’s stock worth $267,000 after buying an additional 19,735 shares in the last quarter. Marshall Wace LLP increased its holdings in SecureWorks by 11.6% in the 2nd quarter. Marshall Wace LLP now owns 49,997 shares of the technology company’s stock valued at $350,000 after buying an additional 5,205 shares during the period. Finally, King Luther Capital Management Corp acquired a new position in shares of SecureWorks in the 2nd quarter valued at approximately $411,000. 14.38% of the stock is owned by institutional investors and hedge funds.

About SecureWorks

SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers in the United States and internationally. The company's solutions include software-as-a-service solutions; managed security services; and professional services, including incident response and penetration testing services.