VMware (NYSE:VMW) Rating Lowered to Sector Perform at Royal Bank of Canada

VMware (NYSE:VMWGet Rating) was downgraded by analysts at Royal Bank of Canada from an “outperform” rating to a “sector perform” rating in a report released on Thursday, The Fly reports.

A number of other equities research analysts have also recently commented on VMW. Cross Research lowered their price objective on shares of VMware from $165.00 to $140.00 and set a “buy” rating on the stock in a research note on Friday, February 25th. Stifel Nicolaus lowered their price objective on shares of VMware from $160.00 to $135.00 and set a “buy” rating on the stock in a research note on Friday, February 25th. Mizuho decreased their price target on shares of VMware from $125.00 to $115.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 18th. The Goldman Sachs Group decreased their price target on shares of VMware from $136.00 to $119.00 and set a “neutral” rating on the stock in a research note on Friday, February 25th. Finally, Morgan Stanley decreased their price target on shares of VMware from $147.00 to $138.00 and set an “equal weight” rating on the stock in a research note on Friday, February 25th. Eleven analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $138.52.

VMware stock traded up $2.96 during trading hours on Thursday, reaching $123.50. 734,503 shares of the stock were exchanged, compared to its average volume of 1,860,957. The stock has a market cap of $52.00 billion, a P/E ratio of 28.65, a P/E/G ratio of 1.56 and a beta of 0.68. The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.83 and a current ratio of 0.83. VMware has a 52-week low of $91.53 and a 52-week high of $167.83. The firm’s 50 day moving average is $109.84 and its 200 day moving average is $116.78.

VMware (NYSE:VMWGet Rating) last announced its quarterly earnings results on Thursday, May 26th. The virtualization software provider reported $1.28 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.56 by ($0.28). The company had revenue of $3.09 billion during the quarter, compared to analysts’ expectations of $3.19 billion. VMware had a net margin of 14.16% and a return on equity of 30.03%. The business’s revenue for the quarter was up 3.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.24 EPS. Equities research analysts expect that VMware will post 4.83 EPS for the current fiscal year.

In related news, CFO Zane Rowe sold 34,172 shares of VMware stock in a transaction on Monday, April 4th. The shares were sold at an average price of $114.61, for a total value of $3,916,452.92. Following the completion of the sale, the chief financial officer now owns 171,042 shares in the company, valued at $19,603,123.62. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Jean Pierre Brulard sold 7,656 shares of VMware stock in a transaction on Friday, April 1st. The stock was sold at an average price of $114.04, for a total transaction of $873,090.24. Following the completion of the sale, the executive vice president now owns 79,485 shares of the company’s stock, valued at approximately $9,064,469.40. The disclosure for this sale can be found here. Insiders have sold 60,166 shares of company stock worth $7,081,793 in the last quarter. Insiders own 27.80% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in VMW. Counterpoint Mutual Funds LLC acquired a new position in shares of VMware during the fourth quarter valued at $25,000. SOA Wealth Advisors LLC. acquired a new position in shares of VMware during the fourth quarter valued at $26,000. Zions Bancorporation N.A. boosted its holdings in shares of VMware by 140.2% during the first quarter. Zions Bancorporation N.A. now owns 233 shares of the virtualization software provider’s stock valued at $27,000 after acquiring an additional 136 shares during the period. Hudock Inc. boosted its holdings in shares of VMware by 158.1% during the fourth quarter. Hudock Inc. now owns 271 shares of the virtualization software provider’s stock valued at $31,000 after acquiring an additional 166 shares during the period. Finally, Tompkins Financial Corp acquired a new position in shares of VMware during the fourth quarter valued at $31,000. 47.04% of the stock is owned by hedge funds and other institutional investors.

VMware Company Profile (Get Rating)

VMware, Inc provides software solutions in the areas of modern applications, cloud management and infrastructure, networking, security, and digital workspaces in the United States and internationally. It offers VMware multi-cloud solutions, including VMware vSphere, a data center infrastructure that provides the fundamental compute layer; vSAN and VxRail, which offers holistic data storage and protection options to applications running on vSphere; and vRealize Cloud Management solutions that manages hybrid and multi-cloud environments running in virtual machines and containers, as well as VMware Cloud Foundation, a cloud platform that combines its vSphere, vSAN, and NSX with vRealize Cloud Management into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds.

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