According to Zacks, “VMware is benefiting from robust performance of NSX, VeloCloud and vSAN product lines. The company has been consistently taking initiatives to diversify its product portfolio to include most of the IT infrastructure. VMware’s dominance in software-defined data center (SDDC) along with expanding customer base in cloud driven by partnerships with the likes of IBM and AWS is positive. The company has significant growth opportunities from rapid deployment of 5G. Moreover, continuing enterprise deal wins will drive growth in the long haul. Shares have outperformed the industry on a year-to-date basis. Nevertheless, VMware’s margins are expected to remain under pressure due to heavy spending. Intensifying competition is also a concern.”
Several other research analysts have also issued reports on the company. KeyCorp raised their target price on VMware from $172.00 to $192.00 and gave the stock an “overweight” rating in a research report on Friday, March 1st. Nomura set a $130.00 target price on VMware and gave the stock a “sell” rating in a research report on Friday, March 1st. Deutsche Bank raised their target price on VMware from $200.00 to $215.00 and gave the stock a “buy” rating in a research report on Tuesday, April 23rd. Mizuho initiated coverage on VMware in a research report on Wednesday, March 13th. They set a “neutral” rating and a $160.00 target price for the company. Finally, Raymond James raised their target price on VMware from $163.00 to $196.00 and gave the stock an “outperform” rating in a research report on Friday, March 1st. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and fourteen have given a buy rating to the company. The stock presently has a consensus rating of “Buy” and an average target price of $186.52.
VMware (NYSE:VMW) last announced its earnings results on Thursday, February 28th. The virtualization software provider reported $1.60 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.50 by $0.10. The business had revenue of $2.59 billion during the quarter, compared to analyst estimates of $2.50 billion. VMware had a return on equity of 25.50% and a net margin of 26.99%. During the same period last year, the company earned $1.68 EPS. As a group, equities analysts forecast that VMware will post 4.87 EPS for the current year.
In other news, insider P. Kevan Krysler sold 11,993 shares of the firm’s stock in a transaction dated Thursday, April 4th. The stock was sold at an average price of $184.04, for a total value of $2,207,191.72. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Amy Fliegelman Olli sold 1,723 shares of the firm’s stock in a transaction dated Thursday, March 14th. The shares were sold at an average price of $178.98, for a total value of $308,382.54. Following the completion of the sale, the vice president now owns 34,332 shares of the company’s stock, valued at $6,144,741.36. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 315,896 shares of company stock valued at $58,151,231. Company insiders own 29.90% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of VMW. Wellington Management Group LLP grew its stake in shares of VMware by 441.6% in the 1st quarter. Wellington Management Group LLP now owns 2,203,110 shares of the virtualization software provider’s stock valued at $397,683,000 after buying an additional 1,796,348 shares during the period. Norges Bank acquired a new stake in shares of VMware in the 4th quarter valued at about $84,157,000. Natixis grew its stake in shares of VMware by 1,201.9% in the 1st quarter. Natixis now owns 289,699 shares of the virtualization software provider’s stock valued at $51,566,000 after buying an additional 267,447 shares during the period. Marshall Wace North America L.P. grew its stake in shares of VMware by 335.0% in the 1st quarter. Marshall Wace North America L.P. now owns 344,864 shares of the virtualization software provider’s stock valued at $62,251,000 after buying an additional 265,586 shares during the period. Finally, Castle Hook Partners LP acquired a new stake in shares of VMware in the 4th quarter valued at about $30,265,000. Institutional investors own 17.74% of the company’s stock.
VMware Company Profile
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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