Stanley Black & Decker, Inc. (SWK) : What’s the Story?

Stanley Black & Decker, Inc. (NYSE:SWK) is an interesting player in the Industrial Goods space, with a focus on Machine Tools & Accessories. The stock has been active on the tape, currently trading at $118.76, up from yesterday’s close by 0.65%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Does this stock stack up well when compared to its peers in the space? Let’s take a look. Stanley Black & Decker, Inc. (SWK) currently trades with a market capitalization of $17.90B. That value represents a market adjusting for revenues that have been growing by 1.90% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For SWK, the company currently has $420.80M of cash on the books, which is offset by $4.02B current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $1.45B over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of 1.68 on a per share basis this quarter. Perhaps, that suggests something about why 88.40% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Stanley Black & Decker, Inc. recorded a 52-week high of 126.72. It is now trading 8.73 off that level. The stock is trading 118.02 its 50-day moving average by 0.030000000000001. The stock carved out a 52-week low down at 88.72.

In recent action, Stanley Black & Decker, Inc. (SWK) has made a move of -0.29% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 2.28, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 149.65M with 1.76% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of SWK.

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