As of Thursday close, VMware Inc.’s (NYSE:VMW) stock was up $2.09, moving up 1.25 percent to $168.78. The average number of shares traded per day over the past five days has been 2,241,340 shares. 5 times new highs have been achieved over the past 5 days, with a $6.78 gain in that time frame. In the last twenty days, the average volume was 1,655,000, while in the previous 50 days, it was 1,579,526.
Since last month, VMW stock rose 6.90%. Shares of the company fell to $153.60 on 08/18/23, the lowest level in the past month. A 52-week high of $170.00 was reached on 08/31/23 after having rallying from a 52-week low of $103.55. Since the beginning of this year, VMW’s stock price has risen by 37.49% or $46.02, and marked a new high 20 times. However, the stock has declined by -0.72% since its 52-week high.
VMW stock investors should be aware that VMware Inc. (VMW) stock had its last reported insider trading activity 56 days ago on Jul 07. Brulard Jean Pierre, the EVP, Worldwide Sales of the company, disposed of 17,220 shares for $142.28 on Jul 07. It resulted in a $2,450,062 divestment by the insider. Brulard Jean Pierre sold 3,600 shares at an average price of $141.51 on Jul 06. The insider now owns 103,905 shares following the transaction. On Apr 03, Chief Financial Officer & EVP Rowe Zane sold 35,715 shares at $124.53 apiece. The transaction was valued at $4,447,592.
Valuation Metrics
Right now, VMware Inc. (VMW) has a P/E ratio of about 55.74. The stock’s beta is 0.72. Besides these, the trailing price-to-sales (P/S) ratio of 5.35, the price-to-book (PB) ratio of 38.71, and the price-to-cash flow ratio of 15.75 may also be considered.
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 0.80, while its current ratio was 0.80, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending April 29 was 5.08, and the total debt-to-equity ratio was 5.62. On the profitability front, the trailing twelve-month gross margin is 81.40% percent. In the year ended April 29, EBITDA margin amounted to 24.45%, whereas operating margins totaled 14.20%. Based on annual data, VMW earned $10.87 billion in gross profit and brought in $13.35 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 12.80%. Return on equity (ROE) for the past 12 months was 119.30%.
In VMware Inc.’s quarter-end financial report for April 29, it reported total debt of $9.45 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 5.77% to $3.22 billion during the quarter, while net income inched up to $3.28 billion. While analysts expected VMware Inc. to report $1.56 quarterly earnings, the actual figure was $1.49 per share, beating the consensus estimate by -4.50%. During the quarter, the company generated $640.0 million in EBITDA. The liabilities of VMware Inc. were 28.71 billion at the end of its most recent quarter ended April 29, and its total debt was $11.45 billion. The value of shareholders’ equity is $430.36 million.
Technical Picture
This quick technical analysis looks at VMware Inc.’s (VMW) price momentum. With a historical volatility rate of 25.12%, the RSI 9-day stood at 75.18% on 31 August.
With respect to its five-day moving average, the current VMware Inc. price is up by +4.19% percent or $6.78. At present, VMW shares trade +6.52% above its 20-day simple moving average and +35.86% percent above its 100-day simple moving average. However, the stock is currently trading approximately +22.53% above its SMA50 and +45.54% above its SMA200.
Stochastic coefficient K was 93.52% and Stochastic coefficient D was 86.72%, while ATR was 3.40. Given the Stochastic reading of 91.50% for the 14-day period, the RSI (14) reading has been calculated as 71.21%. As of today, the MACD Oscillator reading stands at 3.19, while the 14-day reading stands at 6.31.
Analyst Ratings
VMware Inc. downgraded its rating on VMware Inc. (NYSE: VMW) to a Neutral in a note to investors on August 28, 2023. The analysts firm previously had a Buy rating on the stock.VMware Inc. (VMW) has been rated Hold by analysts. According to 0 brokerage firms, VMW is a sell, and 11 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate VMware Inc. stock as buy, with 0 recommending it as overweight.
With a median target price of $142.50, the current consensus forecast for the stock is $134.00 – $180.00. Based on these forecasts, analysts predict VMware Inc. (VMW) will achieve an average price target of $150.71.
