Pure Storage (NYSE:PSTG) Reaches New 52-Week High - Still a Buy?

Key Points

• Pure Storage's share price achieved a new 52-week high, reaching $88.22 during trading, indicating strong demand and investor confidence.
• Wall Street analysts have generally positive views on Pure Storage, with 14 analysts rating it as a "Buy" and an average target price of $77.39.
• The company's latest quarterly earnings report showed earnings per share of $0.43, exceeding expectations, along with a revenue growth of 12.7% compared to the previous year.

Pure Storage, Inc. (NYSE:PSTG - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $88.17 and last traded at $88.22, with a volume of 1088298 shares changing hands. The stock had previously closed at $87.87.

Wall Street Analyst Weigh In

PSTG has been the subject of a number of analyst reports. Barclays boosted their price objective on shares of Pure Storage from $57.00 to $70.00 and gave the company an "equal weight" rating in a report on Friday, August 29th. Morgan Stanley boosted their price objective on shares of Pure Storage from $60.00 to $72.00 and gave the company an "equal weight" rating in a report on Thursday, August 28th. Cowen restated a "buy" rating on shares of Pure Storage in a report on Thursday, August 28th. Needham & Company LLC boosted their price objective on shares of Pure Storage from $75.00 to $85.00 and gave the company a "buy" rating in a report on Thursday, August 28th. Finally, Piper Sandler boosted their price objective on shares of Pure Storage from $66.00 to $78.00 and gave the company an "overweight" rating in a report on Thursday, August 28th. 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. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $77.39.

Pure Storage Price Performance

The company's 50-day simple moving average is $66.42 and its 200-day simple moving average is $55.92. The stock has a market capitalization of $29.10 billion, a P/E ratio of 215.92, a price-to-earnings-growth ratio of 8.16 and a beta of 1.20.

Pure Storage (NYSE:PSTG - Get Free Report) last posted its quarterly earnings results on Wednesday, August 27th. The technology company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.04. Pure Storage had a net margin of 4.15% and a return on equity of 11.34%. The firm had revenue of $861.00 million for the quarter, compared to analyst estimates of $845.78 million. During the same period in the prior year, the firm posted $0.44 earnings per share. The company's quarterly revenue was up 12.7% compared to the same quarter last year. Pure Storage has set its FY 2026 guidance at EPS. Q3 2026 guidance at EPS. On average, analysts forecast that Pure Storage, Inc. will post 0.44 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider John Colgrove sold 198,749 shares of the stock in a transaction dated 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 transaction, the insider directly owned 500,000 shares of the company's stock, valued at $30,160,000. This represents a 28.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Mona Chu sold 17,500 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $76.51, for a total transaction of $1,338,925.00. Following the completion of the transaction, the chief accounting officer directly owned 138,899 shares in the company, valued at $10,627,162.49. The trade was a 11.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 645,360 shares of company stock valued at $41,741,022. 5.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Pure Storage

Several large investors have recently modified their holdings of PSTG. Bank Pictet & Cie Europe AG raised its position in shares of Pure Storage by 23.3% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 9,201 shares of the technology company's stock valued at $565,000 after purchasing an additional 1,740 shares during the period. Formidable Asset Management LLC acquired a new position in shares of Pure Storage in the fourth quarter valued at about $201,000. Toronto Dominion Bank grew its stake in shares of Pure Storage by 1.1% in the fourth quarter. Toronto Dominion Bank now owns 40,705 shares of the technology company's stock valued at $2,500,000 after acquiring an additional 429 shares in the last quarter. Forum Financial Management LP grew its stake in shares of Pure Storage by 8.5% in the fourth quarter. Forum Financial Management LP now owns 4,523 shares of the technology company's stock valued at $278,000 after acquiring an additional 353 shares in the last quarter. Finally, Mackenzie Financial Corp grew its stake in shares of Pure Storage by 135.5% in the fourth quarter. Mackenzie Financial Corp now owns 131,027 shares of the technology company's stock valued at $8,049,000 after acquiring an additional 75,378 shares in the last quarter. 83.42% of the stock is owned by institutional investors.

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.