Pure Storage (NYSE:PSTG) Reaches New 1-Year High Following Earnings Beat

Key Points

• Pure Storage's stock reached a new 52-week high of $78.69 after reporting earnings of $0.43 per share, which exceeded analysts' expectations of $0.39.
• The company reported quarterly revenue of $861 million, surpassing the consensus estimate of $845.78 million, marking a 12.7% increase compared to the same quarter last year.
• Analysts have shown strong confidence in Pure Storage, with fourteen research firms rating it as a "Buy" and a consensus target price of $72.17.

Shares of Pure Storage, Inc. (NYSE:PSTG - Get Free Report) reached a new 52-week high on Thursday following a stronger than expected earnings report. The stock traded as high as $78.69 and last traded at $78.34, with a volume of 7062760 shares trading hands. The stock had previously closed at $60.86.

The technology company reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.39 by $0.04. The business had revenue of $861.00 million for the quarter, compared to the consensus estimate of $845.78 million. Pure Storage had a net margin of 3.93% and a return on equity of 13.98%. The company's quarterly revenue was up 12.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.44 EPS. Pure Storage has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS.

Analyst Ratings Changes

A number of research firms have recently weighed in on PSTG. Raymond James Financial reaffirmed an "outperform" rating on shares of Pure Storage in a research report on Thursday. Morgan Stanley assumed coverage on shares of Pure Storage in a research note on Thursday, August 21st. They issued an "equal weight" rating and a $60.00 price target on the stock. Barclays dropped their price target on shares of Pure Storage from $61.00 to $57.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 29th. Guggenheim reiterated a "buy" rating and issued a $93.00 price target on shares of Pure Storage in a research note on Thursday. Finally, Needham & Company LLC upped their price target on shares of Pure Storage from $75.00 to $85.00 and gave the stock a "buy" rating in a research note on Thursday. Fourteen equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $72.17.

Insider Buying and Selling

In related news, insider Ajay Singh sold 22,601 shares of the business's stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $55.45, for a total transaction of $1,253,225.45. Following the completion of the sale, the insider owned 261,465 shares in the company, valued at $14,498,234.25. The trade was a 7.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider John Colgrove sold 198,749 shares of the business's stock in a transaction that occurred on Thursday, July 31st. The shares were sold at an average price of $60.32, for a total value of $11,988,539.68. Following the completion of the sale, the insider owned 500,000 shares of the company's stock, valued at approximately $30,160,000. This represents a 28.44% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 446,794 shares of company stock valued at $26,641,913. Corporate insiders own 5.60% of the company's stock.

Institutional Investors Weigh In On Pure Storage

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PSTG. LPL Financial LLC increased its holdings in shares of Pure Storage by 22.6% in the first quarter. LPL Financial LLC now owns 118,368 shares of the technology company's stock valued at $5,240,000 after purchasing an additional 21,812 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of Pure Storage by 13.4% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 275,796 shares of the technology company's stock valued at $12,209,000 after purchasing an additional 32,611 shares during the period. D.A. Davidson & CO. increased its holdings in shares of Pure Storage by 7.7% in the first quarter. D.A. Davidson & CO. now owns 7,000 shares of the technology company's stock valued at $310,000 after purchasing an additional 500 shares during the period. Fifth Third Bancorp increased its holdings in shares of Pure Storage by 11.3% in the first quarter. Fifth Third Bancorp now owns 5,339 shares of the technology company's stock valued at $236,000 after purchasing an additional 542 shares during the period. Finally, Oppenheimer & Co. Inc. increased its holdings in shares of Pure Storage by 8.4% in the first quarter. Oppenheimer & Co. Inc. now owns 7,327 shares of the technology company's stock valued at $324,000 after purchasing an additional 570 shares during the period. Hedge funds and other institutional investors own 83.42% of the company's stock.

Pure Storage Stock Up 29.6%

The stock has a fifty day moving average of $56.92 and a two-hundred day moving average of $53.40. The stock has a market cap of $25.77 billion, a price-to-earnings ratio of 211.99, a price-to-earnings-growth ratio of 6.19 and a beta of 1.07.

Pure Storage Company Profile

Pure Storage, Inc engages in the provision of data storage and management technologies, products, and services in the United States and internationally. Its Purity software is shared across its products and provides enterprise-class data services, such as always-on data reduction, data protection, and encryption, as well as storage protocols, including block, file, and object.

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