Pure Storage (NYSE:PSTG) Trading Down 14.6% – Time to Sell?

Pure Storage, Inc. (NYSE:PSTG) was down 14.6% during mid-day trading on Thursday . The stock traded as low as $63.00 and last traded at $62.82. Approximately 1,969,570 shares changed hands during mid-day trading, a decline of 46% from the average daily volume of 3,654,480 shares. The stock had previously closed at $73.56.

Key Stories Impacting Pure Storage

Here are the key news stories impacting Pure Storage this week:

• Positive Sentiment: Q4 beat and scale: Everpure reported roughly $1.06B in Q4 revenue (?20% YoY growth) and adjusted EPS of $0.69, topping estimates and marking its first $1B quarter — evidence of continued demand and hyperscale momentum. Read More.
• Positive Sentiment: Rebrand and M&A to shift strategy: The company rebranded to Everpure and announced a definitive agreement to acquire 1touch to add data discovery/semantic/contextual capabilities, signaling a move from hardware-centric storage toward data intelligence/AI-enabled offerings. Read More.
• Positive Sentiment: Guidance and backlog: Q1 revenue guidance (~$990M–$1.0B) was above Street expectations and FY27 revenue guidance was maintained/raised to ~$4.3B–$4.4B, while Q4 remaining performance obligations (RPO) grew >40% YoY — supportive for forward revenue visibility. Read More.
• Positive Sentiment: Analyst support: Wedbush reiterated an Outperform, and some firms raised price targets after the results, reflecting positive sell?side reception. Read More.
• Neutral Sentiment: Mixed analyst posture: Barclays raised its price target to $81 but kept an “equal weight” rating, a cautious endorsement that tempers upside momentum. Read More.
• Neutral Sentiment: Additional disclosure/materials: The company posted the earnings slide deck and call transcript for deeper diligence — useful but not market-moving by itself. Read More.
• Negative Sentiment: Short-term profit-taking after the post?earnings pop: Shares initially jumped on the beat/rebrand, and some investors appear to have sold into that strength, pushing the stock lower today. Read More.
• Negative Sentiment: Valuation and expectations: PSTG/Everpure still carries a high valuation (stretched trailing P/E) versus near-term earnings — that raises sensitivity to any execution risk or guidance that falls short of very strong expectations, which can amplify downside after a big run.

Wall Street Analysts Forecast Growth

PSTG has been the topic of several analyst reports. TD Cowen restated a “buy” rating on shares of Pure Storage in a report on Wednesday, December 3rd. Morgan Stanley set a $83.00 target price on shares of Pure Storage in a research report on Wednesday, December 3rd. Wells Fargo & Company reduced their price target on Pure Storage from $100.00 to $90.00 and set an “overweight” rating on the stock in a research report on Thursday. Wall Street Zen raised Pure Storage from a “hold” rating to a “buy” rating in a research note on Saturday, February 21st. Finally, Tigress Financial set a $105.00 target price on Pure Storage in a research note on Wednesday, December 3rd. Twelve research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $94.16.

Pure Storage Trading Down 12.3%

The firm has a market capitalization of $21.30 billion, a P/E ratio of 169.71, a PEG ratio of 5.94 and a beta of 1.27. The business has a 50 day moving average of $70.47 and a 200-day moving average of $77.52.

Pure Storage (NYSE:PSTG) last issued its quarterly earnings data on Tuesday, December 2nd. The technology company reported $0.58 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.58. The company had revenue of $964.45 million during the quarter, compared to the consensus estimate of $955.60 million. Pure Storage had a net margin of 3.74% and a return on equity of 10.60%. The firm’s revenue was up 16.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.50 earnings per share. On average, analysts anticipate that Pure Storage, Inc. will post 0.44 EPS for the current fiscal year.

Insider Activity

In related news, insider John Colgrove sold 100,000 shares of the stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $71.31, for a total transaction of $7,131,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Ajay Singh sold 7,178 shares of the business’s stock in a transaction that occurred on Tuesday, December 23rd. The shares were sold at an average price of $67.14, for a total value of $481,930.92. Following the completion of the sale, the insider owned 215,091 shares in the company, valued at $14,441,209.74. The trade was a 3.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 5.60% of the company’s stock.

Institutional Trading of Pure Storage

A number of hedge funds and other institutional investors have recently made changes to their positions in PSTG. Winnow Wealth LLC bought a new stake in Pure Storage during the third quarter worth about $26,000. Provenance Wealth Advisors LLC acquired a new stake in Pure Storage in the third quarter valued at $27,000. Salomon & Ludwin LLC grew its position in shares of Pure Storage by 108.2% in the 4th quarter. Salomon & Ludwin LLC now owns 383 shares of the technology company’s stock valued at $27,000 after acquiring an additional 199 shares during the period. Foster Dykema Cabot & Partners LLC acquired a new position in shares of Pure Storage during the 3rd quarter worth about $28,000. Finally, Sunbelt Securities Inc. raised its holdings in shares of Pure Storage by 287.1% in the 3rd quarter. Sunbelt Securities Inc. now owns 329 shares of the technology company’s stock valued at $28,000 after purchasing an additional 244 shares during the period. 83.42% of the stock is currently owned by institutional investors and hedge funds.

Pure Storage Company Profile

Pure Storage, Inc (NYSE: PSTG) is a technology company that designs and sells data storage hardware and software for enterprise and cloud environments. The company is best known for its all-flash storage arrays that are engineered to deliver high performance, low latency and simplified management compared with traditional disk-based systems. Its product portfolio includes purpose-built arrays and software aimed at transactional databases, virtualized infrastructures, analytics and large-scale file/object workloads.

Key product and software offerings include the FlashArray family for block storage and FlashBlade for file and object workloads, together with Purity, the company’s storage operating environment.