Taking a Fresh Look at 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 $127.19, up from yesterday’s close by 1.07%. 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

VMware, Inc. (VMW) currently trades with a market capitalization of $50.33 Billion. That value represents a market adjusting for revenues that have been growing by 13.58 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $2.62 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.15 on a per share basis this quarter. Perhaps, that suggests something about why 0.66% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, VMware, Inc. recorded a 52-week high of $165.00. It is now trading 37.81% off that level. The stock is trading $126.48 its 50-day moving average by -0.70999999999999%. The stock carved out a 52-week low down at $85.45.

In recent action, VMware, Inc. (VMW) has made a move of +12.43% 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 17.8, 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 25.17% with $71.02 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of VMW.

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