Pullback May Be Just a Blip in VMware Stock's System

VMW may move back toward recent record highs

Digital Content Manager
Sep 7, 2023 at 2:43 PM
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VMware, Inc. (NYSE:VMW) stock is down 1.3% to trade at $164.04 at last check, as the tech sector struggles, though its 20-day moving average is containing this pullback. The equity recently nabbed an all-time high of $170.10, and sports a 33.4% year-to-date lead to boot. Now could be the perfect time to buy the dip, too, as a historically bullish signal could push shares back towards their record peak.

 

VMW 20 Day

The equity's recent record comes amid historically low implied volatility (IV), according to Schaeffer's Quantitative Analyst Rocky White, which has been a bullish combination in the past. White's data shows two other signals over the last five years when VMW was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) was in the 20th percentile of its annual range or lower.

This is now the case with the stock's SVI of 23%, which ranks in the low 18th percentile of its annual range. One month after these signals, the shares were higher every time averaging a 4.6% gain. From its current perch, a similar move would push the security back above $168.

Analysts are on the fence regarding VMW, indicating there is ample room for upgrades and/or price-target hikes. All nine of the firms in coverage still rate the security a tepid "hold," while the 12-month consensus target price of $165.90 is just a slim premium to current levels. 

 

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