The stock of VMware Inc. (NYSE:VMW) increased by $2.92 on Tuesday to at $167.11, up 1.78 percent. The last five days have seen an average of 1,863,318 shares of common stock traded. 19 times new highs were reached in the current year, with a gain of $44.31. The average number of shares traded over the last 20 days was 1,466,765, while the average volume over the last 50 days totaled 1,507,926.
VMW stock appreciated 6.01% since last month. On 08/18/23, the company’s shares reached a one-month low of $153.60. The stock touched a high of $170.00 on 07/19/23, after rallying from a low of $103.55 in 52 weeks. The price of VMW stock has risen by 36.13% or $44.31 this year, reaching a new high 19 times. Still, the stock price is down -1.70% from the 52-week high.
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Insider Transactions
VMW stock investors should be aware that VMware Inc. (VMW) stock had its last reported insider trading activity 53 days ago on Jul 07. On Jul 07, EVP, Worldwide Sales Brulard Jean Pierre sold 17,220 shares at $142.28 each. This transaction resulted in the insider making $2,450,062. On Jul 06, Brulard Jean Pierre sold 3,600 shares at a price of US$141.51. After the transaction, the insider now owns 103,905 shares. Chief Financial Officer & EVP Rowe Zane had earlier sold 35,715 shares on Apr 03 for $124.53 a share. The transaction was completed for $4,447,592.
Valuation Metrics
VMware Inc. (VMW) has a trailing price-to-earnings (P/E) ratio of 55.19. Beta for the stock is 0.71. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 5.29, the price-to-book (PB) ratio of 38.33, and the price-to-cash flow ratio of 15.59.
Company paid $27.40 per share in dividends, an increase of 2.2% from $26.81 last year.
Financial Health
For the three months ended April 29, VMware Inc.’s quick ratio was 0.80, while its current ratio was 0.80, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 5.08, and the total debt to equity ratio is 5.62. As far as profitability goes, gross margin for the trailing twelve months is 81.40% percent. VMware Inc.’s EBITDA margin for the year ended April 29 was 24.45%, whereas its operating margin stood at 14.20% for the same period. Based on annual data, it had gross profit of $10.87 billion and revenue of $13.35 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. VMW’s return on assets (ROA) during the last 12 months has been 4.40%. There was a 12.80% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 119.30%.
Earnings Surprise
According to VMware Inc.’s quarterly financial report for the quarter that ended April 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $3.28 billion, while revenues rose by 5.77% to $3.22 billion. It was predicted that VMware Inc.’s quarterly earnings would be $1.49, but it ended up being $1.56, beating the consensus by -4.50%. EBITDA was $640.0 million for the quarter. At the end of VMware Inc.’s most recent quarter ended April 29, its liabilities totaled 28.71 billion, while its total debt was $11.45 billion. Equity owned by shareholders amounts to $430.36 million.
Technical Picture
Here’s a quick look at VMware Inc.’s (VMW) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 74.63%, suggesting the stock is Overbought, with a 25.67% historical volatility rate.
The stochastic %K and %D were 77.72% and 71.86% respectively, while the average true range (ATR) was 3.37. Based on the 14-day stochastic reading of 95.16%, the RSI (14) reading is 70.30%. On the 9-day MACD Oscillator, the stock is at 2.98, and the 14-day reading is at 4.99.
Analyst Ratings
VMware Inc. (NYSE: VMW) was downgraded by Monness Crespi & Hardt to a a Neutral rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned VMware Inc. (VMW) an Hold rating. VMW is a stock that is recommended for selling by 0 brokerage firms, while 11 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 0 others recommend it as a buy.
What is VMW’s price target for the next 12 months?
The current consensus forecast for the stock is between $134.00 and $180.00, with a median target price of $141.00. In analyzing these forecasts, the average price target given by analysts for VMware Inc. (VMW) is $147.86.
