The Insider Activity Of VMware Inc. (VMW) Should Not Be Ignored

As of Friday close, VMware Inc.’s (NYSE:VMW) stock was up $0.25, moving up 0.21 percent to $117.25. The average number of shares traded per day over the past five days has been 1,062,880 shares. 3 times new highs have been achieved over the past 5 days, with a $1.05 gain in that time frame. In the last twenty days, the average volume was 1,245,325, while in the previous 50 days, it was 1,997,562.

Since last month, VMW stock rose 1.54%. Shares of the company fell to $107.74 on 07/14/22, the lowest level in the past month. A 52-week high of $137.67 was reached on 02/10/22 after having rallying from a 52-week low of $91.53. Since the beginning of this year, VMW’s stock price has risen by 1.18% or $1.37, and marked a new high 16 times. However, the stock has declined by -14.83% since its 52-week high.


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VMware Inc. (VMW) last reported insider trading activity 60 days ago on Jun 07. Brulard Jean Pierre, the EVP, Worldwide Sales of the company, disposed of 12,532 shares for $130.67 on Jun 07. It resulted in a $1,637,556 divestment by the insider. Rowe Zane sold 9,148 shares at an average price of $129.05 on Jun 02. The insider now owns 189,117 shares following the transaction. On Jun 02, EVP, GC & Secretary Olli Amy Fliegelman sold 2,351 shares at $128.93 apiece. The transaction was valued at $303,114.

Valuation Metrics

Right now, VMware Inc. (VMW) has a P/E ratio of about 30.27. The stock’s beta is 0.68.

The latest dividend of $27.40 per share was paid out, which is 2.2% more than last year’s $26.81.

Financial Health

In the three months ended April 29, VMware Inc.’s quick ratio stood at 0.70, while its current ratio was 0.70, showing that the company is not able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 81.90% percent. In the year ended April 29, operating margins totaled 17.10%. Based on annual data, VMW earned $10.58 billion in gross profit and brought in $12.85 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 17.70%. Return on equity (ROE) for the past 12 months was 35.30%.

In VMware Inc.’s quarter-end financial report for April 29, it reported total debt of $11.93 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. VMW’s revenue rose 11.08% to $2.76 billion during the quarter, while net income inched up to $3.09 billion. While analysts expected VMware Inc. to report $1.56 quarterly earnings, the actual figure was $1.28 per share, beating the consensus estimate by -17.90%. During the quarter, the company generated $696.0 million in EBITDA. The liabilities of VMware Inc. were 27.84 billion at the end of its most recent quarter ended April 29, and its total debt was $13.05 billion. The value of shareholders’ equity is $421.44 million.

Technical Picture

This quick technical analysis looks at VMware Inc.’s (VMW) price momentum. With a historical volatility rate of 10.47%, the RSI 9-day stood at 64.93% on 05 August.

With respect to its five-day moving average, the current VMware Inc. price is up by +0.90% percent or $1.05. At present, VMW shares trade +3.21% above its 20-day simple moving average and +7.88% percent above its 100-day simple moving average. However, the stock is currently trading approximately +1.13% above its SMA50 and -27.54% below its SMA200.

Stochastic coefficient K was 87.62% and Stochastic coefficient D was 86.13%, while ATR was 2.14. Given the Stochastic reading of 88.73% for the 14-day period, the RSI (14) reading has been calculated as 57.76%. As of today, the MACD Oscillator reading stands at 0.96, while the 14-day reading stands at 1.56.

Analyst Ratings

UBS reiterated its a Neutral rating on VMware Inc. (NYSE: VMW) in a note to investors. The analysts firm has however raised their price target to $119, representing a possible 6.2% increase in the stock price. VMware Inc. (VMW) has been rated Overweight by analysts. According to 0 brokerage firms, VMW is a sell, and 13 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate VMware Inc. stock as buy, with 4 recommending it as overweight.

With a median target price of $142.50, the current consensus forecast for the stock is $120.00 – $149.00. Based on these forecasts, analysts predict VMware Inc. (VMW) will achieve an average price target of $139.43.

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