Drilling Down Into VMware, Inc. (VMW)

VMware, Inc. (VMW) is an interesting player in the Technology space, with a focus on Technical & System Software. The stock has been active on the tape, currently trading at $112.03, up from yesterday’s close by 0.21%. 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

No amount of research is complete without a bird’s eye view of the financial data. VMware, Inc. (VMW) currently trades with a market capitalization of $45.40 Billion.

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 VMW, the company currently has $3.55 Billion of cash on the books, which is offset by $680 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $2.3 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.27 on a per share basis this quarter. Perhaps, that suggests something about why 37.18% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, VMware, Inc. recorded a 52-week high of $112.50. It is now trading 0.47% off that level. The stock is trading $104.26 its 50-day moving average by -7.77%. The stock carved out a 52-week low down at $72.27.

In recent action, VMware, Inc. (VMW) has made a move of +1.45% 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 19.61, and it’s gotten there by action that has been less 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 33.79% with $77.08 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of VMW.

Previous articleUnited Rentals, Inc. (URI): From Top to Bottom
Next articleThe Case for and Against GrubHub Inc. (GRUB)