VMware Inc. (NYSE:VMW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

According to Zacks, “VMware provides virtualization solutions from the desktop to the data center. Their solutions enable organizations to aggregate multiple servers, storage infrastructure and networks together into shared pools of capacity that can be allocated dynamically, securely and reliably to applications as needed, increasing hardware utilization and reducing spending. They have expanded their offering with virtual infrastructure automation and management products to address distributed and heterogeneous infrastructure challenges such as system recoverability and reliability, backup and recovery, resource provisioning and management, capacity and performance management and desktop security. They derive a significant majority of their revenues from their indirect sales channel that include distributors, resellers, x86 system vendors and systems integrators. “

VMW has been the subject of several other reports. Mizuho reaffirmed a “neutral” rating and set a $66.00 price objective (up from $61.00) on shares of VMware in a report on Thursday, September 1st. Vetr downgraded shares of VMware from a “buy” rating to a “hold” rating and set a $63.40 price objective for the company. in a report on Wednesday, June 1st. Robert W. Baird reaffirmed a “neutral” rating and set a $77.00 price objective (up from $60.00) on shares of VMware in a report on Wednesday, July 20th. Cowen and Company reaffirmed a “market perform” rating on shares of VMware in a report on Wednesday, July 20th. Finally, Drexel Hamilton reaffirmed a “buy” rating and set a $85.00 price objective (up from $77.00) on shares of VMware in a report on Monday, July 18th. One research analyst has rated the stock with a sell rating, twenty-eight have issued a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $77.49.

Shares of VMware (NYSE:VMW) opened at 73.81 on Wednesday. The stock has a market cap of $31.33 billion, a P/E ratio of 29.74 and a beta of 1.30. VMware has a 1-year low of $43.25 and a 1-year high of $82.35. The company’s 50-day moving average is $72.79 and its 200 day moving average is $61.89.

VMware (NYSE:VMW) last posted its earnings results on Monday, July 18th. The virtualization software provider reported $0.97 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.95 by $0.02. The company earned $1.69 billion during the quarter, compared to the consensus estimate of $1.68 billion. VMware had a net margin of 15.47% and a return on equity of 15.66%. The company’s revenue for the quarter was up 11.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.93 earnings per share. Equities research analysts anticipate that VMware will post $4.29 EPS for the current year.

In other VMware news, insider P. Kevan Krysler sold 6,988 shares of VMware stock in a transaction on Wednesday, July 27th. The shares were sold at an average price of $72.40, for a total transaction of $505,931.20. Following the completion of the transaction, the insider now directly owns 78,654 shares of the company’s stock, valued at $5,694,549.60. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, VP S. Dawn Smith sold 977 shares of VMware stock in a transaction on Thursday, September 8th. The stock was sold at an average price of $73.59, for a total transaction of $71,897.43. Following the transaction, the vice president now directly owns 54,653 shares of the company’s stock, valued at $4,021,914.27. The disclosure for this sale can be found here. Corporate insiders own 0.52% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in VMW. Pacer Advisors Inc. boosted its position in VMware by 10.5% in the second quarter. Pacer Advisors Inc. now owns 1,773 shares of the virtualization software provider’s stock worth $101,000 after buying an additional 168 shares during the period. BlueMountain Capital Management LLC bought a new position in VMware during the first quarter worth approximately $106,000. Advisor Group Inc. bought a new position in VMware during the second quarter worth approximately $163,000. Acrospire Investment Management LLC bought a new position in VMware during the first quarter worth approximately $183,000. Finally, WMS Partners LLC bought a new position in VMware during the second quarter worth approximately $206,000. 22.06% of the stock is owned by hedge funds and other institutional investors.

VMware Company Profile

VMware, Inc is a provider of virtualization infrastructure solutions and cloud infrastructure solutions. The Company develops and markets its product and service offerings within three product groups, which include software-defined data center (SDDC), hybrid cloud computing and end-user computing (EUC).

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