ValuEngine Lowers VMware (NYSE:VMW) to Hold

VMware (NYSE:VMW) was downgraded by equities research analysts at ValuEngine from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Friday, ValuEngine reports.

Several other brokerages have also issued reports on VMW. Citigroup dropped their price target on VMware from $212.00 to $183.00 and set a “buy” rating on the stock in a research note on Friday. Royal Bank of Canada decreased their price objective on VMware from $210.00 to $190.00 and set an “outperform” rating for the company in a report on Friday. Barclays decreased their price objective on VMware from $190.00 to $178.00 and set an “overweight” rating for the company in a report on Friday. Morgan Stanley decreased their price objective on VMware from $192.00 to $190.00 and set an “equal weight” rating for the company in a report on Friday, May 31st. Finally, Raymond James decreased their price objective on VMware from $206.00 to $185.00 and set an “outperform” rating for the company in a report on Friday. They noted that the move was a valuation call. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and fourteen have given a buy rating to the stock. VMware has an average rating of “Hold” and a consensus price target of $177.00.

VMW traded down $14.73 during trading on Friday, hitting $133.42. The company’s stock had a trading volume of 6,544,481 shares, compared to its average volume of 1,342,561. VMware has a twelve month low of $129.33 and a twelve month high of $206.80. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 7.57. The stock’s fifty day moving average price is $164.49 and its 200-day moving average price is $177.20. The firm has a market capitalization of $59.10 billion, a P/E ratio of 27.06, a PEG ratio of 2.23 and a beta of 0.81.

VMware (NYSE:VMW) last issued its quarterly earnings results on Thursday, August 22nd. The virtualization software provider reported $1.60 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.15 by $0.45. VMware had a return on equity of 36.48% and a net margin of 21.50%. The firm had revenue of $2.44 billion for the quarter, compared to analyst estimates of $2.43 billion. During the same period in the previous year, the firm earned $1.54 earnings per share. The company’s revenue was up 12.2% compared to the same quarter last year. Equities research analysts expect that VMware will post 4.87 EPS for the current fiscal year.

In related news, insider P. Kevan Krysler sold 2,661 shares of the company’s stock in a transaction on Tuesday, June 11th. The stock was sold at an average price of $173.96, for a total transaction of $462,907.56. Following the completion of the sale, the insider now owns 34,774 shares in the company, valued at $6,049,285.04. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Rajiv Ramaswami sold 38,813 shares of the company’s stock in a transaction on Tuesday, June 4th. The stock was sold at an average price of $170.58, for a total value of $6,620,721.54. Following the sale, the chief operating officer now owns 181,243 shares of the company’s stock, valued at approximately $30,916,430.94. The disclosure for this sale can be found here. Insiders have sold 84,053 shares of company stock valued at $14,639,696 in the last quarter. 28.80% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently made changes to their positions in the stock. Geode Capital Management LLC lifted its stake in VMware by 6.8% in the fourth quarter. Geode Capital Management LLC now owns 669,382 shares of the virtualization software provider’s stock valued at $91,727,000 after acquiring an additional 42,595 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in VMware by 1.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 106,875 shares of the virtualization software provider’s stock valued at $14,674,000 after acquiring an additional 1,364 shares during the last quarter. Meeder Asset Management Inc. acquired a new stake in VMware in the first quarter valued at approximately $51,000. Boston Advisors LLC acquired a new stake in VMware in the first quarter valued at approximately $640,000. Finally, Mercer Global Advisors Inc. ADV acquired a new stake in VMware in the first quarter valued at approximately $239,000. Institutional investors and hedge funds own 17.70% of the company’s stock.

About VMware

VMware, Inc provides software in the areas of hybrid cloud, multi-cloud, modern applications, networking and security, and digital workspaces 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; and cloud management products for businesses with automated operation, programmable provisioning, and application monitoring solutions.

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To view ValuEngine’s full report, visit ValuEngine’s official website.

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