The Case for and Against Rockwell Collins, Inc. (COL)

Rockwell Collins, Inc. (COL) is an interesting player in the Industrial Goods space, with a focus on Aerospace/Defense Products & Services. The stock has been active on the tape, currently trading at $134.60, up from yesterday’s close by 0.48%. 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. Rockwell Collins, Inc. (COL) currently trades with a market capitalization of $21.91 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 COL, the company currently has $578 Million of cash on the books, which is offset by $511 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $691 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $1.8 on a per share basis this quarter. Perhaps, that suggests something about why 84.41% 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, Rockwell Collins, Inc. recorded a 52-week high of $135.31. It is now trading 0.71000000000001% off that level. The stock is trading $128.62 its 50-day moving average by -5.98%. The stock carved out a 52-week low down at $78.54.

In recent action, Rockwell Collins, Inc. (COL) has made a move of +2.58% over the past month, which has come on Strong 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 2.19% with $161.97 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of COL.

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