VMware (VMW) Raised to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of VMware (NYSE:VMW) from a hold rating to a buy rating in a report released on Wednesday. Zacks Investment Research currently has $135.00 target price on the virtualization software provider’s stock.
According to Zacks, “VMware reported impressive fourth-quarter fiscal 2018 results. Both earnings and revenues increased on a year-over-year basis. The company is benefiting from robust performance of its product offerings like NSX, vSphere and vSAN. We believe that expanding product portfolio, partnerships with the likes of IBM, Amazon, Pivotal, and Alphabet along with continuing enterprise deal wins continue to drive growth. However, several of the growth engines that the company is relying on could take longer to yield results. Thus, heavy spending on R&D may weigh on its margins. Moreover, intensifying competition from Microsoft and Citrix Systems remains a headwind in the near term. Additionally, rumors of a reverse merger with parent Dell Technologies is expected to remain an overhang on the stock in the near term. In the past year, shares have underperformed the industry it belongs to.”
VMW has been the topic of several other reports. Deutsche Bank lifted their price objective on shares of VMware from $145.00 to $175.00 and gave the company a buy rating in a research report on Monday, January 29th. Mizuho reiterated a hold rating and issued a $110.00 price objective on shares of VMware in a research report on Friday, November 17th. Citigroup downgraded shares of VMware from a buy rating to a neutral rating and set a $124.00 price objective on the stock. in a research report on Monday, February 5th. Jefferies Group reiterated a buy rating and issued a $140.00 price objective on shares of VMware in a research report on Friday, December 1st. Finally, Wells Fargo & Co reiterated a market perform rating and issued a $125.00 price objective (up from $110.00) on shares of VMware in a research report on Wednesday, February 28th. One analyst has rated the stock with a sell rating, twelve have issued a hold rating and twenty have issued a buy rating to the company. The stock has a consensus rating of Buy and an average price target of $131.42.
VMware (NYSE:VMW) last issued its quarterly earnings data on Thursday, March 1st. The virtualization software provider reported $1.68 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.62 by $0.06. The firm had revenue of $2.31 billion for the quarter, compared to the consensus estimate of $2.26 billion. VMware had a net margin of 7.18% and a return on equity of 19.52%. VMware’s quarterly revenue was up 13.6% compared to the same quarter last year. During the same period last year, the firm posted $1.43 EPS. equities analysts predict that VMware will post 4.53 earnings per share for the current year.
In other news, EVP Maurizio Carli sold 2,581 shares of VMware stock in a transaction that occurred on Wednesday, January 3rd. The shares were sold at an average price of $129.88, for a total value of $335,220.28. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Rangarajan (Raghu) Raghuram sold 23,381 shares of VMware stock in a transaction that occurred on Tuesday, December 12th. The stock was sold at an average price of $120.40, for a total transaction of $2,815,072.40. The disclosure for this sale can be found here. Insiders sold a total of 35,962 shares of company stock worth $4,447,393 in the last ninety days. Corporate insiders own 34.40% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in VMW. Global Trust Asset Management LLC purchased a new position in shares of VMware in the fourth quarter worth approximately $138,000. Bronfman E.L. Rothschild L.P. increased its position in shares of VMware by 1,643.8% in the third quarter. Bronfman E.L. Rothschild L.P. now owns 1,273 shares of the virtualization software provider’s stock worth $139,000 after acquiring an additional 1,200 shares in the last quarter. Bank of Hawaii purchased a new position in shares of VMware in the fourth quarter worth approximately $202,000. Cadence Capital Management LLC purchased a new position in shares of VMware in the third quarter worth approximately $204,000. Finally, Argent Trust Co purchased a new position in shares of VMware in the third quarter worth approximately $205,000. 22.42% of the stock is currently owned by institutional investors and hedge funds.
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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