Splunk Inc (SPLK) Making Big Gains After Reporting Strong Quarterly Results

Splunk Inc (NASDAQ:SPLK) announced its second quarter fiscal 2016 financial results yesterday, which surpassed Wall Street’s expectations. The data analysis firm reported net revenues of $148.3 million for the second quarter, with 46% year-over-year growth. The market had revenue estimates of $136.4 million. Its non-GAAP earnings per share of $0.03 were $0.01 higher than the analysts’ figures, although the firm reported a GAAP loss of $0.44 per share. During the second quarter, Splunk Inc (NASDAQ:SPLK) signed more than 500 customers, bringing its total customer tally to over 10,000. The real-time intelligence company expanded its expertise in cyber-security offerings with the acquisition of Caspida for $190 million. Caspida is known for its expertise in behavioral analytics for the detection and mitigation of security threats. Splunk Inc (NASDAQ:SPLK) also released its outlook for its fiscal third quarter of 2016, announcing an expected revenue range of between $158 million and $160 million.

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The shares of Splunk Inc (NASDAQ:SPLK) have improved by 8.97% year-to-date, not factoring in their pre-market gains this morning, with the stock up by an additional 4.30%. The smart money maintained a neutral outlook on the stock of the real-time analytics company during the second quarter, as 23 hedge funds we track held net equity positions worth $469.21 million on June 30. The aggregate holdings in Splunk Inc (NASDAQ:SPLK) were up by 16% in comparison to with March 31, although the stock’s gains of 17% mean a small amount of shares were collectively sold. Hedge fund ownership also declined by four during the quarter.

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Insiders of any company understand its operational patterns and management changes, helping them make the right investment choices. Imitating insiders could help average investors boost their market gains. Splunk Inc (NASDAQ:SPLK) has had significant selling activity in the past couple of weeks. Godfrey R. Sullivan, the President, CEO, and Chairman of Splunk Inc, sold 83,348 shares in August alone, with remaining holdings of 491,940 shares.