Why VMware Inc. (VMW) Stock Could See Much Higher Prices Ahead

VMware Inc. (NYSE: VMW) is 0.62% higher on its value in year-to-date trading and has touched a low of $86.00 and a high of $183.50 in the current 52-week trading range. The VMW stock was last observed hovering at around $149.23 in the last trading session, with the day’s gains setting it 3.5% off its average median price target of $175.00 for the next 12 months. It is also 27.27% off the consensus price target high of $210.00 offered by 28 analysts, but current levels are -52.73% lower than the price target low of $100.00 for the same period.

Currently trading at $152.73, the stock is 4.72% and 10.46% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 5.24 million and changing 2.35% at the moment leaves the stock 5.80% off its SMA200. VMW registered -10.62% loss for a year compared to 6-month loss of 0.03%. The firm has a 50-day simple moving average (SMA 50) of $141.54 and a 200-day simple moving average (SMA200) of $138.58.

The stock witnessed a 10.73% gain in the last 1 month and extending the period to 3 months gives it a 31.44%, and is 8.14% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 3.46% over the week and 3.30% over the month.

VMware Inc. (VMW) has around 31000 employees, a market worth around $60.92B and $11.28B in sales. Current P/E ratio is 46.55 and Fwd P/E is 21.38. Profit margin for the company is 55.80%. Distance from 52-week low is 77.59% and -16.77% from its 52-week high. The company has generated returns on investments over the last 12 months (11.40%).

VMware Inc. (VMW) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for VMware Inc. (VMW) is a “Overweight”. 28 analysts offering their recommendations for the stock have an average rating of 2.20, where 8 rate it as a Hold and 3 think it is a “Overweight”. 16 of the analysts rate the stock as a “Buy”. 1 analysts have rated the stock as a Sell or Underperform.

VMware Inc. is expected to release its quarterly report on 08/20/2020 and quarterly earnings per share for the current quarter are estimated at $1.45 with sales reaching $2.8B over the same period.The EPS is expected to shrink by -39.20% this year, but quarterly earnings will post 6.70% year-over-year. Quarterly sales are estimated to grow 14.90% in year-over-year returns.

VMware Inc. (VMW) Top Institutional Holders

801 institutions hold shares in VMware Inc. (VMW), with 119.53M shares held by insiders accounting for 28.52% while institutional investors hold 101.92% of the company’s shares. The shares outstanding are 418.38M, and float is at 80.23M with Short Float at 9.26%. Institutions hold 72.85% of the Float.

The top institutional shareholder in the company is Price (T.Rowe) Associates Inc with over 12.91 million shares valued at $1.56 billion. The investor’s holdings represent 11.54% of the VMW Shares outstanding. As of Mar 30, 2020, the second largest holder is Blackrock Inc. with 5.95 million shares valued at $720.65 million to account for 5.32% of the shares outstanding. The other top investors are Vanguard Group, Inc. (The) which holds 4.96 million shares representing 4.43% and valued at over $600.54 million, while ClearBridge Investments, LLC holds 3.23% of the shares totaling 3.61 million with a market value of $436.91 million.

VMware Inc. (VMW) Insider Activity

A total of 56 insider transactions have happened at VMware Inc. (VMW) in the last six months, with sales accounting for 45 and purchases happening 11 times. The most recent transaction is an insider sale by POONEN SANJAY, the company’s COO, Customer Operations. SEC filings show that POONEN SANJAY sold 32,500 shares of the company’s common stock on Jun 15 at a price of $133.34 per share for a total of $4.33 million. Following the sale, the insider now owns 0.23 million shares.

VMware Inc. disclosed in a document filed with the SEC on Jun 09 that Raghuram Rangarajan (Raghu) (COO, Products & Cloud Services) sold a total of 5,657 shares of the company’s common stock. The trade occurred on Jun 09 and was made at $151.62 per share for $0.86 million. Following the transaction, the insider now directly holds 0.24 million shares of the VMW stock.

Still, SEC filings show that on Jun 02, Brulard Jean Pierre (EVP, Worldwide Sales) disposed off 4,271 shares at an average price of $153.18 for $0.65 million. The insider now directly holds 45,423 shares of VMware Inc. (VMW).

VMware Inc. (VMW): Who are the competitors?

The company’s main competitors (and peers) include Oracle Corporation (ORCL) that is trading -2.91% down over the past 12 months. HP Inc. (HPQ) is -21.36% down on the 1-year trading charts. Short interest in the company’s stock has fallen -10.63% from the last report on Apr 29, 2020 to stand at a total of 8.22 million short shares sold with a short interest ratio of 5.42.