VMware (VMW) Upgraded by Zacks Investment Research to “Buy”

Zacks Investment Research upgraded shares of VMware (NYSE:VMW) from a hold rating to a buy rating in a research report released on Thursday morning. They currently have $183.00 price target on the virtualization software provider’s stock.

According to Zacks, “VMware reported impressive third-quarter fiscal 2019 results. Both earnings and revenues increased on a year-over-year basis. Strong top-line growth was primarily driven by robust performance from NSX and vSAN product line. Management raised fiscal 2019 guidance. VMware has been consistently taking initiatives to diversify its product portfolio to include most of the IT infrastructure. The company’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. 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 be dragged down due to heavy spending. Intensifying competition is also a concern.”

A number of other research firms also recently weighed in on VMW. Nomura set a $128.00 price objective on VMware and gave the company a reduce rating in a report on Friday, November 30th. KeyCorp lifted their price objective on VMware from $167.00 to $199.00 and gave the company an overweight rating in a report on Friday, November 30th. JPMorgan Chase & Co. lifted their price objective on VMware from $165.00 to $194.00 and gave the company an overweight rating in a report on Friday, November 30th. Maxim Group reaffirmed a hold rating and set a $155.00 price objective (up from $150.00) on shares of VMware in a report on Friday, November 30th. Finally, Jefferies Financial Group lifted their price objective on VMware from $186.00 to $196.00 and gave the company a buy rating in a report on Friday, November 30th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and seventeen have assigned a buy rating to the stock. VMware currently has an average rating of Buy and a consensus price target of $170.10.

NYSE VMW opened at $159.21 on Thursday. The company has a debt-to-equity ratio of 0.41, a quick ratio of 3.01 and a current ratio of 3.01. The company has a market cap of $65.07 billion, a price-to-earnings ratio of 41.25, a P/E/G ratio of 2.37 and a beta of 0.77. VMware has a 1-year low of $108.46 and a 1-year high of $168.89.

VMware (NYSE:VMW) last released its quarterly earnings data on Thursday, November 29th. The virtualization software provider reported $1.56 earnings per share for the quarter, beating analysts’ consensus estimates of $1.14 by $0.42. The company had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.17 billion. VMware had a return on equity of 20.49% and a net margin of 17.03%. The company’s quarterly revenue was up 13.5% on a year-over-year basis. During the same period in the previous year, the business earned $1.34 earnings per share. On average, sell-side analysts predict that VMware will post 4.77 EPS for the current year.

In other news, VP Amy Fliegelman Olli sold 1,500 shares of the business’s stock in a transaction that occurred on Thursday, September 20th. The stock was sold at an average price of $152.77, for a total value of $229,155.00. Following the transaction, the vice president now directly owns 30,930 shares of the company’s stock, valued at approximately $4,725,176.10. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Rajiv Ramaswami sold 12,345 shares of the company’s stock in a transaction on Friday, November 2nd. The stock was sold at an average price of $143.73, for a total value of $1,774,346.85. Following the transaction, the chief operating officer now directly owns 218,011 shares in the company, valued at approximately $31,334,721.03. The disclosure for this sale can be found here. Insiders sold a total of 49,829 shares of company stock worth $7,472,465 over the last three months. 29.90% of the stock is owned by company insiders.

A number of large investors have recently bought and sold shares of the business. MARSHALL WACE ASIA Ltd acquired a new position in VMware during the 3rd quarter worth $40,688,000. Clearbridge Investments LLC lifted its holdings in VMware by 0.3% during the 3rd quarter. Clearbridge Investments LLC now owns 2,304,551 shares of the virtualization software provider’s stock worth $359,648,000 after buying an additional 7,342 shares in the last quarter. Vanguard Group Inc. lifted its holdings in VMware by 1.9% during the 3rd quarter. Vanguard Group Inc. now owns 4,387,621 shares of the virtualization software provider’s stock worth $684,732,000 after buying an additional 82,729 shares in the last quarter. Legal & General Group Plc lifted its holdings in VMware by 4.2% during the 3rd quarter. Legal & General Group Plc now owns 313,923 shares of the virtualization software provider’s stock worth $48,991,000 after buying an additional 12,693 shares in the last quarter. Finally, Neuberger Berman Group LLC lifted its holdings in VMware by 8.1% during the 3rd quarter. Neuberger Berman Group LLC now owns 7,017 shares of the virtualization software provider’s stock worth $1,095,000 after buying an additional 526 shares in the last quarter. 18.57% of the stock is currently owned by hedge funds and other institutional investors.

VMware Company Profile

VMware, Inc provides compute, cloud, mobility, networking, and security infrastructure software to businesses 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; storage and availability products that provide data storage and protection options; network and security products; and cloud management and automation products to manage and automate overarching IT processes involved in provisioning IT services and resources to users from initial infrastructure deployment to retirement.

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