SolarWinds Could Face Downdraft When Lockup Expires

April 17, 2019, concludes the 180-day lockup period of SolarWinds Corp. (SWI).

When the lockup period ends for SolarWinds Corp., its pre-IPO shareholders and company insiders will have the opportunity to sell approximately 278 million currently restricted shares. This number dwarfs the 25 million shares trading pursuant to the IPO. The potential for a sudden increase in stock traded on the secondary market could cause a sharp, short-term downturn in SWI's share price.

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(Source: S-1/A)

Currently, SWI trades in the $18 to $19 range, a return from IPO of nearly 25%.

Business Overview: IT Software Provider

Rather than being a solar energy company, SolarWinds offers IT management software to monitor and manage information technology infrastructures. Their products work across a wide array of systems and applications, and they operate in the cloud, on-site, or in hybrid infrastructures. SolarWinds also offers a suite of software for network management that operates in real-time for greater visibility and decision-making. The software has the capability to identify, diagnose, and solve network performance issues. Its AppOptics solution integrates server infrastructure monitoring, application performance, and custom metrics offered as a cloud-based solution. In addition, its software provides visibility into cloud infrastructure metrics, log data, tracing, applications, and web performance management.

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(Source: Company Website)

SolarWinds offers products that third-party MSPs may use with their clients in providing IT services. This includes remote monitoring for servers, desktops, laptops, and mobile devices for many operating systems. Several SolarWinds products are offered as standalone offerings, such as archiving and email protections against malware and phishing. SolarWinds maintains its own in-house marketing and sales team. Clients include Accenture, Lockheed Martin, Chevron, Emerson, Nielsen, and NTT.

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Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this ...

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