Vmware, Inc. (VMW) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Vmware, Inc. (NYSE:VMW) from a buy rating to a hold rating in a research report report published on Monday.

According to Zacks, “VMware's strong results can be attributed to robust performance of its product offerings like NSX, AirWatch, vSphere, and vSAN. During the last reported quarter, VMware unveiled major updates across its VMware vRealize Cloud Management Platform. We believe that expanding product portfolio, partnerships with the likes of Intel, Samsung, Fujitsu, Pivotal, Alphabet, and Microsoft along with continuing enterprise deal wins will drive results in the rest of fiscal 2018. Further, the company's latest partnership with SAP will help it benefit in the Internet of Things (IoT) market. Moreover, aggressive share repurchase will support bottom-line. The company has outperformed the industry on a year-to-date basis. However, sluggish IT spending as well as intensifying competition from Microsoft and Citrix Systems are the major concerns.”

Other equities research analysts have also recently issued reports about the stock. Oppenheimer Holdings, Inc. raised their target price on shares of Vmware from $110.00 to $120.00 and gave the stock a buy rating in a research report on Tuesday, September 5th. Stifel Nicolaus raised shares of Vmware from a hold rating to a buy rating and raised their target price for the stock from $96.00 to $109.00 in a research report on Wednesday, June 21st. Cowen and Company reissued a market perform rating and issued a $104.00 target price (up from $98.00) on shares of Vmware in a research report on Monday, August 14th. Barclays PLC raised shares of Vmware from an equal weight rating to an overweight rating and raised their target price for the stock from $109.00 to $130.00 in a research report on Thursday, September 14th. Finally, Robert W. Baird set a $115.00 target price on shares of Vmware and gave the stock a buy rating in a research report on Monday, August 14th. Fifteen investment analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company’s stock. The company has an average rating of Buy and a consensus target price of $112.28.

Vmware (NYSE VMW) opened at 116.60 on Monday. The firm has a 50-day moving average of $110.10 and a 200 day moving average of $97.07. Vmware has a 12-month low of $72.48 and a 12-month high of $116.72. The firm has a market capitalization of $47.68 billion, a price-to-earnings ratio of 41.97 and a beta of 0.72.

Vmware (NYSE:VMW) last issued its quarterly earnings results on Thursday, August 24th. The virtualization software provider reported $1.19 EPS for the quarter, topping analysts’ consensus estimates of $1.15 by $0.04. The business had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.89 billion. Vmware had a net margin of 17.81% and a return on equity of 18.06%. The company’s quarterly revenue was up 12.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.97 earnings per share. On average, equities analysts predict that Vmware will post $5.07 EPS for the current year.

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Vmware announced that its Board of Directors has initiated a share repurchase program on Monday, August 14th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the virtualization software provider to buy up to 2.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

In other Vmware news, CFO Zane Rowe sold 6,000 shares of the business’s stock in a transaction on Friday, September 1st. The shares were sold at an average price of $107.82, for a total transaction of $646,920.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider P. Kevan Krysler sold 13,751 shares of the business’s stock in a transaction on Friday, September 1st. The shares were sold at an average price of $107.69, for a total transaction of $1,480,845.19. The disclosure for this sale can be found here. In the last 90 days, insiders sold 20,885 shares of company stock valued at $2,248,548. Insiders own 0.52% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in the business. USA Financial Portformulas Corp increased its stake in Vmware by 3.5% during the second quarter. USA Financial Portformulas Corp now owns 6,000 shares of the virtualization software provider’s stock valued at $525,000 after purchasing an additional 202 shares during the last quarter. Oak Associates Ltd. OH increased its stake in Vmware by 16.2% during the second quarter. Oak Associates Ltd. OH now owns 151,800 shares of the virtualization software provider’s stock valued at $13,272,000 after purchasing an additional 21,200 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Vmware during the second quarter valued at $1,121,000. Bangor Savings Bank increased its stake in Vmware by 31.5% during the second quarter. Bangor Savings Bank now owns 12,517 shares of the virtualization software provider’s stock valued at $1,094,000 after purchasing an additional 3,000 shares during the last quarter. Finally, WINTON GROUP Ltd bought a new stake in Vmware during the second quarter valued at $1,184,000. Hedge funds and other institutional investors own 21.80% of the company’s stock.

Vmware Company Profile

VMware, Inc is an information technology (IT) company. The Company is engaged in development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. The Company offers various products, which allow organizations to manage IT resources across private clouds and multi-cloud, multi-device environments by leveraging synergies across three product categories: Software-Defined Data Center (SDDC), Hybrid Cloud Computing and End-User Computing (EUC).

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