Mizuho Reiterates “Hold” Rating for Vmware, Inc. (VMW)
Vmware, Inc. (NYSE:VMW)‘s stock had its “hold” rating restated by Mizuho in a report released on Friday. They currently have a $110.00 price target on the virtualization software provider’s stock. Mizuho’s target price indicates a potential downside of 10.76% from the stock’s current price.
The analysts wrote, “We expect results toward the upper-end of revenue/profitability guidance while the full- year outlook could move modestly higher on sustained conservatism in current forecast as well as continued execution. We remain on the sidelines given our view of full valuation against secular challenges that the company faces amid a shift to the cloud. We maintain our Neutral rating and $110 PT. KeyPoints Expect results toward the upper-end of guidance range. FX was largely in- line with levels since management guided the quarter. We expect total revenue of around $1,960-1,980mm (+10-11% Y/Y) vs. guidance of $1,930-1,980mm and consensus of $1,965mm. EPS is likely to print toward the upper-end of guidance of $1.25-1.28 (cons: $1.28). Notably, in-line with the last few quarters, we expect some upside to consensus bookings estimates (mgmt. does not guide the metric). We think results could come in around $2,040-2,060mm (up 17-18% Y/Y) or about $50mm above consensus at the mid-point.””
A number of other equities research analysts have also recently issued reports on the stock. Zacks Investment Research upgraded shares of Vmware from a “hold” rating to a “buy” rating and set a $121.00 price target for the company in a report on Monday, September 4th. Citigroup Inc. restated a “buy” rating and set a $124.00 price target on shares of Vmware in a report on Monday, August 28th. Berenberg Bank restated a “hold” rating and set a $94.00 price target on shares of Vmware in a report on Tuesday, August 29th. Jefferies Group LLC upped their price target on shares of Vmware from $121.00 to $129.00 and gave the company a “buy” rating in a report on Friday, August 25th. Finally, Credit Suisse Group started coverage on shares of Vmware in a report on Tuesday, September 5th. They set an “outperform” rating and a $130.00 price target for the company. Fifteen research analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus target price of $116.00.
Vmware (NYSE:VMW) opened at $123.26 on Friday. The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 0.10. The company has a market cap of $50,180.00, a price-to-earnings ratio of 34.50, a price-to-earnings-growth ratio of 2.81 and a beta of 0.67. Vmware has a 1 year low of $76.81 and a 1 year high of $123.50.
Vmware (NYSE:VMW) last posted its earnings results on Thursday, August 24th. The virtualization software provider reported $1.19 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.15 by $0.04. The firm had revenue of $1.90 billion for 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 business’s quarterly revenue was up 12.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.97 earnings per share. equities analysts anticipate that Vmware will post 3.79 EPS for the current fiscal year.
Vmware announced that its board has authorized a stock buyback program on Monday, August 14th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the virtualization software provider to reacquire up to 2.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.
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In related news, Director Egon Durban sold 435,682 shares of the firm’s stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $109.31, for a total value of $47,624,399.42. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Sanjay Poonen sold 1,134 shares of the firm’s stock in a transaction that occurred on Friday, September 8th. The shares were sold at an average price of $106.51, for a total transaction of $120,782.34. Following the completion of the sale, the chief operating officer now directly owns 192,774 shares of the company’s stock, valued at approximately $20,532,358.74. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 466,314 shares of company stock valued at $51,024,652. Company insiders own 0.52% of the company’s stock.
Institutional investors have recently modified their holdings of the stock. Sapphire Star Partners LP increased its holdings in shares of Vmware by 20.0% in the third quarter. Sapphire Star Partners LP now owns 2,880 shares of the virtualization software provider’s stock valued at $314,000 after purchasing an additional 480 shares in the last quarter. Summit Global Investments acquired a new stake in shares of Vmware in the second quarter valued at approximately $631,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Vmware in the second quarter valued at approximately $1,121,000. BNP Paribas Arbitrage SA increased its holdings in shares of Vmware by 64.3% in the second quarter. BNP Paribas Arbitrage SA now owns 35,641 shares of the virtualization software provider’s stock valued at $3,116,000 after purchasing an additional 13,946 shares in the last quarter. Finally, AXA increased its holdings in shares of Vmware by 102.9% in the second quarter. AXA now owns 120,100 shares of the virtualization software provider’s stock valued at $10,501,000 after purchasing an additional 60,900 shares in the last quarter. 22.27% of the stock is owned by institutional investors and hedge funds.
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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