On December 03, 2019, VMware, Inc. (NYSE:VMW) shares lost -2.89% or -4.44 points to close at $149.41 with a heavy trading volume of 3.49 million shares. It opened the trading session at $149.77, the shares rose to $150.72 and dropped to $146.44, the range by which the price of stock traded the whole day. The company now has a market cap of $63.2 billion and currently has 423.15 million outstanding shares. VMware, Inc. (VMW) stock has plunged -8.37 percent of market value in 21 trading days.
VMW stock’s trailing 3-year beta is 0.89, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.28 share in the trailing 52 weeks. The stock’s value surged 8.96 percent year to date (YTD) compared to a rise of 7.48 percent in 52 week’s period. The firm’s shares are still trading -27.75 percent below its 1-year high of $206.80 and 26.74 percent up from 52-week low of $117.89. The average consensus ranking on the company is 2.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.
VMware, Inc. (VMW) is most likely going to rise 20.74 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $210-month high price target. This represents a whopping 40.55 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $190, which means a return possibility of 27.17 percent in comparison with the closing price of the stock of $149.41 on December 03. The lowest price set for the stock is $115 — just above -23.03 percent from VMW share price now.
Past records have indicated that shares in VMware, Inc. rose on 22 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of VMW’s Q4 earnings on February 27. Analysts are predicting revenue to climb 13.8 percent to $2.95B in the financial fourth quarter, while EPS will soar by about 9.6 percent to $2.17 per share. In the last quarter, it earnings of $1.98 per share came better than the $1.87833, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $2.59B, topping the $2.5B analysts had expected. Earnings are seen to rise by 55 percent this year, 6.5 percent in the coming year and the trend continues by 7.45 percent every year in the next 5 years.
Let’s take a glimpse at some insider activity at VMware, Inc. (NYSE:VMW) and observe the pattern. The earliest insider trade happened on 11/04/2019. RAMASWAMI RAJIV parted with a total of 14.86 thousand shares of the firm at average share price of $163.57. The total amount for the sale was set at $2.43 million. On completing this exchange, the COO, Products & Cloud Services account balance was 108.75 thousand shares. The stock lost -8.66 percent from that insider sale. On 11/04/2019, Raghuram Rangarajan (Raghu), COO, Products & Cloud Services, did a sale of 24.71 thousand shares at a price of $163.53 per share. This got rid of 4.04 million shares from the insider’s fortune and the stock experienced a -8.63 percent retreat in price since the news became public. This exchange saw 197.27 thousand shares get out from the COO, Products & Cloud Services account.
On 10/11/2019, EVP Worldwide Sales & Services Carli Maurizio recorded a sale transaction valued at $4.21 million. The sale at $156.37 a share has eliminated 26.9 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -4.45 percent decrease since the transaction reporting date. The company insider is left with 58.49 thousand shares remaining in the account. Raghuram Rangarajan (Raghu), who works as COO, Products & Cloud Services at the company, performed a sale of 2.15 thousand shares in a transaction worth $325.98 thousand. The disposal recorded on 10/02/2019 was priced at $151.62 per share. The stock price plunged -1.46 percent since the transaction. Raghuram Rangarajan (Raghu) currently holds a stake of 248.73 thousand in VMW stock which is worth $37.16 million after the insider selling.
The stock is lingering around the initial support level of $146.99. After this, the following support is at the zone of $144.58. Up until the time the VMW stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 31.86 on the daily chart, and this may be a cause for comfort. In case the price goes below $144.58 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $151.27 level may cause a pull-back move approaching $153.14 mark.
VMware, Inc. (VMW) shares are trading at a P/E ratio of 9.5 times earnings posted in the trailing 12 months. The industry VMW deals with has an average P/E of 30. Its P/B ratio is standing at 10.5X compared to the 9.5 industry average. It is additionally sporting a 6.4 on the Price-to-Sales ratio, compared to the industry’s P/S average of 7.5. VMware, Inc. has a 85.5% gross profit margin, with its operating margin around 21.9%. Alongside this, the company’s net profit margin currently stands at 20.9%.