Pivotal Software, Inc. (PVTL) Stock: Why It’s Declining


Pivotal Software, Inc. (PVTL) is falling in the market in today’s trading session. The company, one that is focused on the tech industry, is currently priced at $19.76 after heading down -8.18% so far in today’s session. When it comes to tech companies, there are a number of aspects that have the potential to cause price movement in the market. News is one of the most common reasons for movement. Here are the most recent stories surrounding PVTL:

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Mar-15-19 10:53AM Analysts Buy Into Pivotal Software’s Subscription Story, Shrug Off Muted Guidance
10:15AM Pivotal Software (PVTL) Q4 Loss Narrows, Revenues Up Y/Y
03:33AM Pivotal Software, Inc. (PVTL) Q4 2019 Earnings Conference Call Transcript
Mar-14-19 04:37PM Pivotal Software: Fiscal 4Q Earnings Snapshot
04:31PM Pivotal stock plunges after revenue miss, weak guidance

Nonetheless, when making a decision to invest, prospective investors should take a look at much more than news, especially in the ever changing tech industry. Here’s what’s happening in regard to Pivotal Software, Inc..

Recent Trends From PVTL

While a move down in a single session, like the fall that we’re seeing from Pivotal Software, Inc. may make some investors fearful, a single session fall alone shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It is always important to dig into trends beyond a single trading day. In the case of PVTL, below are the movements that we have seen:

  • Weekly – Throughout the last 5 trading sessions, PVTL has generated a price change amounting to -10.18%.
  • Past 30 Days – The return from Pivotal Software, Inc. over the last month works out to -2.27%.
  • Past Quarter – Throughout the last three months, the stock has generated a return on investment that comes to 15.83%
  • Past 6 Months – Throughout the last six months, investors have seen a performance of -14.09% from the company.
  • Year To Date – Since the close of last year PVTL has resulted in a ROI of 20.86%.
  • Full Year – Lastly, throughout the last full year, we’ve seen performance in the amount of 0 from PVTL. In this period, the stock has sold at a high of -36.75% and a low of 36.94%.

Rations That Traders Should Look Into

Looking at various key ratios having to do with a stock can provide investors an understanding of just how risky and/or potentially profitable a pick may be. Here are some of the key ratios to look at when looking at PVTL.

Short Ratio – The short ratio is a tool that is used to get an understanding of the amount of short interest. As the short ratio heads up, it means that more investors believe that the stock is going to fall. Across the sector, strong technology stocks tend to have a lower short ratio. On the other hand, we also tend to see quite a few short squeezes in the space. Nonetheless, when it comes to Pivotal Software, Inc., it’s short ratio is 3.58.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Basically, they measure If a company is able to cover its debts as they mature using quick assets or current assets. Because in tech, companies are heavily reliant on the continuation of investor support as they work to bring new technologies to market, the quick and current ratios can be bad. However, some gems in the technology industry do have strong current and quick ratios. As it relates to PVTL, the quick and current ratios work out to 2.70 and 2.70 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets currently owned by the company to the price of shares. In this case, the book to share value ratio comes in at 4.84.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. As it relates to PVTL, the cash to share value ratio works out to 2.43.

Is Big Money Interested In Pivotal Software, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in PVTL, here’s what we’re seeing:

  • Institutional Investors – As it stands now, institutions hold 74.60% of PVTL. However, it is important to note that institutional ownership has seen a move of 4.24% throughout the last quarter.
  • Insider Moves – When it comes to insiders, those close to the situation currently own 1.30% of Pivotal Software, Inc.. Their ownership of the company has seen a move of 0 throughout the past quarter.

Analyst Opinions With Regard To Pivotal Software, Inc.

While it’s never a good idea to avoid doing your DD and blindly following the thoughts of analysts, it is a smart idea to consider their thoughts in order to validate your own before making an investment decision in the technology sector. Here are the recent moves that we’ve seen from analysts when it comes to PVTL.

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Mar-15-19 Reiterated BofA/Merrill Neutral $22 → $25
Mar-06-19 Downgrade Goldman Buy → Neutral $25 → $24
Dec-20-18 Upgrade RBC Capital Mkts Sector Perform → Outperform
Dec-12-18 Reiterated Needham Buy $25 → $28
Oct-23-18 Initiated Needham Buy $25

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.09. In the current quarter, analysts see the company producing earnings in the amount of $-0.05. Over the last 5 years, PVTL has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 14.20% and revenue has seen movement of 30.30%.

How Many Shares Of PVTL Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 273.16M shares of Pivotal Software, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, PVTL has a float of 67.55M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to PVTL, the short percent of the float is 10.88%.

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