VMware (VMW) – Research Analysts’ Recent Ratings Updates

VMware (NYSE: VMW) recently received a number of ratings updates from brokerages and research firms:

  • 8/31/2018 – VMware had its price target raised by analysts at Oppenheimer Holdings Inc. from $170.00 to $180.00. They now have an “outperform” rating on the stock.
  • 8/29/2018 – VMware was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “VMware reported impressive second-quarter fiscal 2019 results. Both earnings and revenues increased on a year-over-year basis. Strong top-line growth was primarily driven by robust performance from NSX and vSAN product line. Moreover, management provided solid guidance for fiscal 2019. Nevertheless, VMware’s margins are expected to be dragged down due to heavy spending. Intensifying competition is also a concern. The stiff competitive environment hurts VMware’s pricing power, which impacts profitability. Additionally, longer sales cycles remain a headwind. Shares have underperformed the industry on a year-to-date basis.”
  • 8/26/2018 – VMware had its “buy” rating reaffirmed by analysts at Barclays PLC. They now have a $175.00 price target on the stock.
  • 8/24/2018 – VMware had its price target raised by analysts at Nomura from $111.00 to $115.00. They now have a “reduce” rating on the stock.
  • 8/24/2018 – VMware had its price target raised by analysts at JPMorgan Chase & Co. from $150.00 to $165.00. They now have an “overweight” rating on the stock.
  • 8/24/2018 – VMware had its price target raised by analysts at KeyCorp from $160.00 to $167.00. They now have an “overweight” rating on the stock. They wrote, “Jul Q license revenue beats consensus by 17%, but highlight of the quarter is EAA signed with AMZN, in our view. Oct Q revenue guidance slightly above consensus and FY19 revenue guidance increased, though OM guidance maintained. On raised FY20 estimates, raising our DCF-based 12-month price target to $133, from $126; continue to view SPLK as a secular Buy.””
  • 8/24/2018 – VMware had its price target raised by analysts at Royal Bank of Canada to $180.00. They now have an “outperform” rating on the stock.
  • 8/24/2018 – VMware had its “outperform” rating reaffirmed by analysts at William Blair.
  • 8/24/2018 – VMware had its price target raised by analysts at Maxim Group from $142.00 to $150.00. They now have a “hold” rating on the stock. They wrote, “Another strong seasonal performance drives above-guidance results. October quarter (F3Q19) license revenue guidance beats consensus by ~2% and FY19 guidance raised across the board. We raise our price target to $150, from $142, in accordance with raised guidance, but maintain our Hold rating as we see a period of beats and raises coming to a close, benefits from DELL channel tapering, and MSFT better positioned long-term.””
  • 8/24/2018 – VMware had its price target raised by analysts at Stifel Nicolaus from $122.00 to $142.00. They now have a “hold” rating on the stock.
  • 8/21/2018 – VMware was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “VMware shares have outperformed the industry on a year-to-date basis. The company is gaining from robust performance of NSX and vSAN product lines. VMware has been consistently taking initiatives to diversify its product portfolio to include most of the IT infrastructure. The company’s dominance in SDDC along with expanding customer base in cloud driven by partnerships with the likes of IBM and AWS is positive. Moreover, continuing enterprise deal wins will drive growth in the long haul. Estimates have been stable lately ahead of the company’s second quarter earnings release. The company has positive record of earnings surprises in recent quarters. However, heavy spending on R&D may weigh on its margins. Intensifying competition is also a concern.”
  • 8/13/2018 – VMware had its price target raised by analysts at Oppenheimer Holdings Inc. from $165.00 to $170.00. They now have an “outperform” rating on the stock.
  • 8/1/2018 – VMware was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “VMware is gaining from robust performance from NSX and vSAN product lines. The company has been consistently taking initiatives to diversify its product portfolio to include most of the IT infrastructure. The company’s dominance in SDDC along with expanding customer base in cloud driven by partnerships with the likes of IBM and AWS is positive. Moreover, continuing enterprise deal wins will drive growth in the long haul. However, heavy spending on R&D may weigh on its margins. Intensifying competition is also a concern. Shares have underperformed the industry on a year-to-date basis.”
  • 7/16/2018 – VMware had its price target raised by analysts at Bank of America Corp to $190.00. They now have a “buy” rating on the stock.

Shares of NYSE VMW opened at $154.60 on Friday. The firm has a market capitalization of $62.67 billion, a PE ratio of 40.05, a P/E/G ratio of 2.46 and a beta of 0.57. VMware, Inc. has a fifty-two week low of $107.12 and a fifty-two week high of $165.00. The company has a debt-to-equity ratio of 0.44, a current ratio of 3.04 and a quick ratio of 3.04.

VMware (NYSE:VMW) last announced its quarterly earnings results on Thursday, August 23rd. The virtualization software provider reported $1.54 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.49 by $0.05. The company had revenue of $2.17 billion during the quarter, compared to analysts’ expectations of $2.15 billion. VMware had a return on equity of 21.06% and a net margin of 18.77%. The firm’s quarterly revenue was up 12.5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.19 earnings per share. equities research analysts predict that VMware, Inc. will post 4.73 earnings per share for the current year.

In other news, EVP Maurizio Carli sold 3,779 shares of VMware stock in a transaction on Friday, September 7th. The stock was sold at an average price of $152.54, for a total value of $576,448.66. Following the completion of the transaction, the executive vice president now directly owns 107,959 shares in the company, valued at $16,468,065.86. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, COO Sanjay Poonen sold 20,000 shares of VMware stock in a transaction on Tuesday, July 3rd. The shares were sold at an average price of $160.15, for a total value of $3,203,000.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 122,518 shares of company stock valued at $19,067,627. 29.90% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Point72 Asia Hong Kong Ltd purchased a new position in VMware during the first quarter worth about $106,000. Perigon Wealth Management LLC purchased a new position in VMware during the first quarter worth about $121,000. Moneta Group Investment Advisors LLC grew its position in VMware by 217.5% during the second quarter. Moneta Group Investment Advisors LLC now owns 1,000 shares of the virtualization software provider’s stock worth $147,000 after buying an additional 685 shares in the last quarter. Signet Financial Management LLC purchased a new position in VMware during the second quarter worth about $151,000. Finally, W.G. Shaheen & Associates DBA Whitney & Co purchased a new position in VMware during the first quarter worth about $167,000. Institutional investors own 20.11% of the company’s stock.

VMware, Inc provides compute, cloud, mobility, networking, and security infrastructure software to businesses in the United States and internationally. The company offers compute products, including VMware vSphere, a data center platform, which enables users to deploy hypervisor, a layer of software that resides between the operating system and system hardware to enable compute virtualization; storage and availability products that provide data storage and protection options; network and security products; and cloud management and automation products to manage and automate overarching IT processes involved in provisioning IT services and resources to users from initial infrastructure deployment to retirement.

See Also: Relative Strength Index

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