Vmware (NYSE:VMW) was downgraded by investment analysts at Drexel Hamilton from a “buy” rating to a “hold” rating in a research note issued to investors on Friday. The analysts noted that the move was a valuation call.
A number of other research firms have also commented on VMW. BMO Capital Markets increased their price target on Vmware from $105.00 to $110.00 and gave the company a “market perform” rating in a research report on Tuesday, August 15th. Deutsche Bank increased their price target on Vmware from $100.00 to $110.00 and gave the company a “hold” rating in a research report on Tuesday, August 15th. Bank of America reissued a “buy” rating and issued a $125.00 price target (up from $120.00) on shares of Vmware in a research report on Thursday, September 14th. Oppenheimer reissued a “buy” rating on shares of Vmware in a research report on Tuesday, August 29th. Finally, Barclays raised Vmware from an “equal weight” rating to an “overweight” rating and raised their target price for the company from $109.00 to $130.00 in a research report on Thursday, September 14th. Sixteen investment analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company. The company has an average rating of “Buy” and a consensus target price of $121.74.
Vmware (VMW) traded up $0.69 during midday trading on Friday, reaching $120.11. The company had a trading volume of 4,418,600 shares, compared to its average volume of 1,584,219. The stock has a market cap of $52,165.21, a price-to-earnings ratio of 35.87, a P/E/G ratio of 2.92 and a beta of 0.67. Vmware has a twelve month low of $76.81 and a twelve month high of $127.60. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.98 and a quick ratio of 1.98.
Vmware announced that its Board of Directors has authorized a stock repurchase program on Monday, August 14th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the virtualization software provider to reacquire up to 2.5% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its stock is undervalued.
In related news, COO Sanjay Poonen sold 1,134 shares of Vmware stock in a transaction dated Friday, September 8th. The stock was sold at an average price of $106.51, for a total value of $120,782.34. Following the completion of the sale, the chief operating officer now owns 192,774 shares of the company’s stock, valued at approximately $20,532,358.74. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, COO Rajiv Ramaswami sold 9,747 shares of the firm’s stock in a transaction dated Thursday, November 2nd. The stock was sold at an average price of $118.16, for a total value of $1,151,705.52. The disclosure for this sale can be found here. In the last three months, insiders sold 446,563 shares of company stock valued at $48,896,887. 34.40% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of VMW. APG Asset Management N.V. boosted its stake in Vmware by 302.3% in the 3rd quarter. APG Asset Management N.V. now owns 2,044,921 shares of the virtualization software provider’s stock worth $223,285,000 after purchasing an additional 1,536,600 shares during the period. Janus Henderson Group PLC boosted its stake in Vmware by 6,030.7% in the 2nd quarter. Janus Henderson Group PLC now owns 806,433 shares of the virtualization software provider’s stock worth $70,506,000 after purchasing an additional 793,279 shares during the period. Voya Investment Management LLC boosted its stake in Vmware by 25.7% in the 2nd quarter. Voya Investment Management LLC now owns 2,633,434 shares of the virtualization software provider’s stock worth $230,241,000 after purchasing an additional 538,393 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in Vmware by 75.0% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,169,757 shares of the virtualization software provider’s stock worth $102,272,000 after purchasing an additional 501,400 shares during the period. Finally, Koch Industries Inc. boosted its stake in Vmware by 16,537.3% in the 2nd quarter. Koch Industries Inc. now owns 479,821 shares of the virtualization software provider’s stock worth $474,000 after purchasing an additional 476,937 shares during the period. Institutional investors and hedge funds own 22.21% of the company’s stock.
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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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