VMware Inc. (NYSE:VMW) shares traded higher over the last trading session, gaining 0.29% on 05/27/21. The shares fell to a low of $159.57 before closing at $161.21. Intraday shares traded counted 1.51 million, which was -35.78% lower than its 30-day average trading volume of 1.11M. VMW’s previous close was $160.74 while the outstanding shares total 420.09M. The firm has a beta of 0.82, a 12-month trailing P/E ratio of 33.14, and a growth ratio of 3.77. The stock’s Relative Strength Index (RSI) is 51.42, with weekly volatility at 1.44% and ATR at 3.02. The VMW stock’s 52-week price range has touched low of $126.79 and a $172.00 high.
Investors have identified the Software – Infrastructure company VMware Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $67.67 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
VMware Inc. (VMW) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 8.61 billion total, with 8.39 billion as their total liabilities.
VMW were able to record 4.08 billion as free cash flow during the 08/26/2021 quarter of the year, this saw their quarterly net cash flow reduce by 1.74 billion. In cash movements, the company had a total of 4.41 billion as operating cash flow.
Potential earnings growth for VMware Inc. (VMW)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/26/2021 quarter of the year, VMware Inc. recorded a total of 3.29 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 6.71% coming in sequential stages and their sales for the 08/26/2021 quarter increasing by 13.05%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 555.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 2.74 billion. This allows shareholders to hold on to 420.09M with the recently reported earning now reading 1.88 cents per share. This is a figure that compared to analyst’s prediction for their 08/26/2021 (1.61 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.93 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on VMW sounds very interesting.
Is the stock of VMW attractive?
In related news, EVP, GC & Secretary, Olli Amy Fliegelman sold 2,590 shares of the company’s stock in a transaction that recorded on May 04. The sale was performed at an average price of 159.64, for a total value of 413,463. As the sale deal closes, the COO, Products & Cloud Services, Raghuram Rangarajan (Raghu) now sold 2,490 shares of the company’s stock, valued at 400,467. Also, Director, GELSINGER PATRICK P sold 24,230 shares of the company’s stock in a deal that was recorded on Apr 19. The shares were price at an average price of 167.64 per share, with a total market value of 4,061,884. Following this completion of acquisition, the Director, GELSINGER PATRICK P now holds 1,536 shares of the company’s stock, valued at 253,455. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.00%.
11 out of 27 analysts covering the stock have rated it a Buy, while 13 have maintained a Hold recommendation on VMware Inc.. 0 analysts has assigned a Sell rating on the VMW stock. The 12-month mean consensus price target for the company’s shares has been set at $170.98.