Vulcan Value Partners Believes in the Long-Term Prospects of Splunk (SPLK)

Investment management company Vulcan Value Partners recently released its second quarter 2022 investor letter. A copy of the same can be downloaded here. The firm carries five strategies and all these strategies trailed their benchmark index in the second quarter of 2022. The fund’s Large-Cap Composite returned -28.4% net of fees and expenses, Small Cap Composite returned net -25.8%, Focus Composite returned net -22.8%, Focus Plus composite returned net -22.9% and All Cap Composite returned net -29.1% during the quarter. You can check the top 5 holdings of the fund to know its best picks in 2022.

Vulcan Value Partners discussed stocks like Splunk Inc. (NASDAQ:SPLK) in the second quarter investor letter. Headquartered in  San Francisco, California, Splunk Inc. (NASDAQ:SPLK) is a software company. On August 23, 2022, Splunk Inc. (NASDAQ:SPLK) stock closed at $108.24 per share. One-month return of Splunk Inc. (NASDAQ:SPLK) rose to 6.29% and its shares lost 30.18% of their value over the last 52 weeks. Splunk Inc. (NASDAQ:SPLK) has a market capitalization of $17.416 billion.

Here is what Vulcan Value Partners specifically said about Splunk Inc. (NASDAQ:SPLK):

“Splunk Inc. (NASDAQ:SPLK) is a software company for managing and gaining insights from data. Despite being a material detractor during the quarter, Splunk reported better than expected revenue, margins and guidance. Revenue increased 34% and the company produced a 20% free cash flow margin. Additionally, Gary Steele started his position as the new CEO. Gary was the founder of Proofpoint and led that company for 20 years prior to selling it to Thoma Bravo for $12 billion last year. We believe Splunk’s long-term prospects remain strong. As they have transitioned their customers to the cloud, the company is generating good free cash flow and its margins are increasing and have the potential to expand. The company has a solid competitive position, a large market, and we expect its growth to be strong and durable.”

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Splunk Inc. (NASDAQ:SPLK) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, Splunk Inc. (NASDAQ:SPLK) was held by 47 hedge fund portfolios at the end of the first quarter, which was 42 in the previous quarter.

We discussed Splunk Inc. (NASDAQ:SPLK) in another article and shared Carillon Tower Advisers’ views on the company.  You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.