Taking a Fresh Look at Gigamon Inc. (GIMO)

Gigamon Inc. (NYSE:GIMO) is an interesting player in the Technology space, with a focus on Networking & Communication Devices. The stock has been active on the tape, currently trading at $45.35, up from yesterday’s close by 0.22%. 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

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Gigamon Inc. (GIMO) currently trades with a market capitalization of $1.64B. That value represents a market adjusting for revenues that have been growing by 47.40% 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 GIMO, the company currently has $244.74M of cash on the books, which is offset by $0.00 current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $36.77M over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of 0.19 on a per share basis this quarter. Perhaps, that suggests something about why 71.40% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Gigamon Inc. recorded a 52-week high of 61.25. It is now trading 16 off that level. The stock is trading 48.19 its 50-day moving average by 2.94. The stock carved out a 52-week low down at 21.23.

In recent action, Gigamon Inc. (GIMO) has made a move of -2.37% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 83, 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 32.93M with 9.17% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of GIMO.

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