Wells Fargo Moves In on VMware Stock

VMW put buying has picked up

by Josh Selway

Published on Oct 1, 2019 at 10:07 AM

VMware, Inc. (NYSE:VMW) is trading up 2.4% at $155.56, thanks to bullish analyst attention. Wells Fargo this morning upgraded its opinion on the software name to "outperform" and boosted its price target by $40 to $180. This price level served as a ceiling for the shares from June through early August, and represents 20% upside to last night's close of $150.06.

Today's price action has VMW stock back above its 50-day moving average for the first time since Aug. 2, though the equity's May peak of $206.80 is still far away. Meanwhile, data from the major options exchanges shows that traders were betting bearishly on VMware before today.

That is, the security's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 1.33, which not only shows long puts outpacing long calls in the past two weeks, but that reading ranks in the top quartile of its annual range. In other words, this level of put buying compared to call buying is rather rare. Still, peak front-month open interest sits at the October 160 call.

But turning back to analysts, most have remained bullish on VMW, despite the bearish attention it received following the August M&A moves. Thirteen of the 21 covering brokerage firms recommend buying the stock, while the average 12-month price target is up at $174.


a schaeffer's exclusive

PLAY TRENDS LIKE A PRO!

5 tips to leverage profits in this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The IRS Loopholes Retirees Need to Know
Click to continue to advertiser's site.
Weed Stock Burning Down After Earnings
CGC and DDS options volume has ramped up today
Home Depot Headlines Heavy Batch of Retail Earnings
Macy's, Target, and Lowe's will also unveil quarterly results next week
The IRS Loopholes Retirees Need to Know
Click to continue to advertiser's site.