Digging Through Radware Ltd. (RDWR) Fundamentals

On Thursday, shares of Radware Ltd. (NASDAQ:RDWR) marked $25.90 per share versus a previous $25.55 closing price. With having a 1.37% gain, an insight into the fundamental values of Radware Ltd., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. RDWR showed a rise of 0.47% within its YTD performance, with highs and lows between $16.02 – $26.98 during the period of 52 weeks, compared to the simple moving average of 10.50% in the period of the last 200 days.

Berenberg equity researchers changed the status of Radware Ltd. (NASDAQ: RDWR) shares from “Buy” to a “Hold” rating in the report published on April 1st, 2020. Other analysts, including Needham, also published their reports on RDWR shares. Needham repeated the rating from the previous report, marking RDWR under “Hold” rating, in the report published on February 13th, 2020. Additionally, RDWR shares got another “Buy” rating from Berenberg, setting a target price of $30 on the company’s shares, according to the report published in November 29th, 2018. On June 25th, 2018, Needham Reiterated an Buy rating and increased its price target from $26 to $32. On the other hand, Needham Reiterated the “Buy” rating for RDWR shares, as published in the report on February 21st, 2018. Needham seems to be going bullish on the price of RDWR shares, based on the price prediction for RDWR, indicating that the shares will jump from $23 to $24.50, giving the shares “Buy” rating based on their report from February 8th, 2018. Another “In-line” rating came from Imperial Capital, providing a prediction for $24.50 price target according to the report published in February 6th, 2018.

Radware Ltd. (RDWR) Analysis

The present dividend yield for RDWR owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Radware Ltd., the company needs to provide a healthy cash flow, currently at the value of 29.06. In addition, the growth of sales from quarter to quarter is recording -2.30%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Radware Ltd. (RDWR) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 5.40% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.50 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while RDWR is currently recording an average of 224.80K in volumes. The volatility of the stock on monthly basis is set at 2.06%, while the weekly volatility levels are marked at 2.43%with 5.54% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $26.80, indicating growth from the present price of $25.90, which can represent yet another valuable research and analysis points that can help you decide whether to invest in RDWR or pass.

What to Look for When Analyzing Radware Ltd. Shares?

Radware Ltd. (RDWR) is based in the Israel and it represents one of the well-known company operating with Technology sector. If you wish to compare RDWR shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 60.37 for Radware Ltd., while the value 31.51 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 0.43 is supported by the yearly EPS growth of 78.40%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 28.50%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 72.10% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in RDWR Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in RDWR in the recent period. That is how Renaissance Technologies LLC now has an increase position in RDWR by 4.92% in the first quarter, owning 1.88 million shares of RDWR stocks, with the value of $44.4 million after the purchase of an additional 88,185 shares during the last quarter. In the meanwhile, Excellence Investments Ltd. also increased their stake in RDWR shares changed 23.76% in the first quarter, which means that the company now owns 1.84 million shares of company, all valued at $43.32 million after the acquisition of additional 352,585 shares during the last quarter.

Federated Global Investment Manag acquired a new position in Radware Ltd. during the first quarter, with the value of $40.98 million, and GO ETF Solutions LLP increased their stake in the company’s shares by 16.82% in the first quarter, now owning 224,382 shares valued at $36.76 million after the acquisition of the additional 1.56 million shares during the last quarter. At the present, 72.10% of RDWR shares are in the ownership of institutional investors.