VMware (VMW) Lowered to “Strong Sell” at Zacks Investment Research

VMware (NYSE:VMW) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Friday.

According to Zacks, “VMware faces intense competition from Microsoft and Citrix Systems which is a major headwind for the company. 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 heavily on its margins in the near future. Growth in license bookings has been muted for the last few quarters which is a concern. However, the company benefits from innovative product pipeline and strategic partnerships. Shares have outperformed the industry in the past one year.”

A number of other research analysts also recently commented on VMW. Stifel Nicolaus restated a “buy” rating and set a $152.00 price objective (up from $150.00) on shares of VMware in a research note on Monday, November 27th. Bank of America increased their price target on VMware from $125.00 to $148.00 and gave the stock a “buy” rating in a research note on Monday, November 27th. Drexel Hamilton restated a “buy” rating and issued a $120.00 price objective on shares of VMware in a report on Thursday, November 30th. Barclays restated a “buy” rating on shares of VMware in a report on Friday, November 10th. Finally, Citigroup upped their price objective on VMware to $145.00 and gave the company a “buy” rating in a report on Friday, December 1st. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and twenty-one have given a buy rating to the stock. The company currently has a consensus rating of “Buy” and an average target price of $130.84.

VMware (VMW) traded up $1.09 during trading on Friday, reaching $126.80. The company had a trading volume of 2,317,207 shares, compared to its average volume of 4,050,869. The firm has a market cap of $50,970.00, a price-to-earnings ratio of 36.23, a PEG ratio of 2.85 and a beta of 0.81. The company has a quick ratio of 2.86, a current ratio of 2.86 and a debt-to-equity ratio of 0.51. VMware has a 12-month low of $85.45 and a 12-month high of $165.00.

VMware (NYSE:VMW) last released its quarterly earnings results on Thursday, November 30th. The virtualization software provider reported $1.34 EPS for the quarter, topping the consensus estimate of $1.27 by $0.07. VMware had a return on equity of 18.57% and a net margin of 18.97%. The firm had revenue of $1.98 billion for the quarter, compared to analyst estimates of $1.97 billion. During the same period in the previous year, the company posted $1.14 EPS. VMware’s revenue for the quarter was up 11.1% on a year-over-year basis. sell-side analysts anticipate that VMware will post 3.77 earnings per share for the current year.

In related news, COO Sanjay Poonen sold 2,764 shares of the stock in a transaction that occurred on Friday, December 8th. The stock was sold at an average price of $118.50, for a total transaction of $327,534.00. Following the completion of the sale, the chief operating officer now owns 189,391 shares in the company, valued at approximately $22,442,833.50. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Rangarajan (Raghu) Raghuram sold 23,381 shares of the stock in a transaction that occurred on Tuesday, December 12th. The shares were sold at an average price of $120.40, for a total value of $2,815,072.40. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 38,726 shares of company stock valued at $4,774,927. 34.40% of the stock is owned by corporate insiders.

Several hedge funds have recently made changes to their positions in VMW. Global Trust Asset Management LLC bought a new position in VMware during the fourth quarter worth about $138,000. Bronfman E.L. Rothschild L.P. lifted its stake in shares of VMware by 1,643.8% in the 3rd quarter. Bronfman E.L. Rothschild L.P. now owns 1,273 shares of the virtualization software provider’s stock valued at $139,000 after acquiring an additional 1,200 shares during the last quarter. Enterprise Financial Services Corp lifted its stake in shares of VMware by 3,975.6% in the 3rd quarter. Enterprise Financial Services Corp now owns 1,671 shares of the virtualization software provider’s stock valued at $182,000 after acquiring an additional 1,630 shares during the last quarter. Cadence Capital Management LLC bought a new position in shares of VMware in the 3rd quarter valued at $204,000. Finally, Argent Trust Co bought a new position in shares of VMware in the 3rd quarter valued at $205,000. Institutional investors own 22.40% of the company’s stock.

COPYRIGHT VIOLATION WARNING: This piece was originally posted by Sports Perspectives and is the sole property of of Sports Perspectives. If you are reading this piece on another website, it was illegally copied and reposted in violation of US & international copyright laws. The legal version of this piece can be read at https://sportsperspectives.com/2018/02/02/vmware-vmw-lowered-to-strong-sell-at-zacks-investment-research.html.

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).

Get a free copy of the Zacks research report on VMware (VMW)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for VMware (NYSE:VMW)

Receive News & Ratings for VMware Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for VMware and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply