Q2 STOCKS TO BUY

VMware Stock Puts the Squeeze on Shorts After Earnings

BMO upgraded VMW stock after earnings

Dec 1, 2017 at 9:47 AM
facebook X logo linkedin


Last night, VMware, Inc. (NYSE:VMW) reported third-quarter adjusted earnings of $1.34 per share on $1.98 billion in revenue. This came in above the consensus forecast for a per-share profit of $1.27 on $1.96 billion in revenue. The virtualization firm also said licensing revenue came in at a stronger-than-expected $785 million.

The results were met with an onslaught of upbeat analyst attention. BMO, for instance, raised its rating on VMW stock to "outperform" from "market perform," and joined no fewer than 12 other brokerage firms in boosting their price targets on the security. The most optimistic outlook came from Stifel,which raised its VMW target price to $152 from $150 -- representing expected upside of 26.6% to last night's close at $120.11.

In fact, the highest VMW shares have ever traded is $127.60, tagged this past Monday -- before Wednesday's tech stock selloff. Nevertheless, the equity found a foothold atop its rising 40-day moving average during this mid-week retreat, a trendline that's guided VMware higher for most of the past two years. Today, the stock is up 2.4% to trade at $122.96 -- not quite the reaction the options market was pricing in -- widening its year-to-date gain to 53%.

A bigger bounce by VMW stock could spark a short-covering rally. Short interest edged up in the most recent reporting period to 23.33 million shares -- just shy of the mid-September record high of 26.04 million shares. This accounts for almost 28% of VMware's available float, or 12.9 times the stock's average daily pace of trading.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter