VMware Inc. (VMW): Time to Buy this stock


VMware Inc. (NYSE:VMW) changes shares on Friday trading session, with a change of 5.06% or $7.26 shares. The trading starts at $148.23 and closed at $143.43 throughout the day. The trading session low price was $147.42 and day high was $152.00 on Friday, June 19. After the session, the Technology sector daily volume shifted to 3.18 million while its average volume is 1.48M. In other hand, the VMW market cap reached to $63.35B. While, its current target price is $150.69 according to WSJ.

Checking out the performance report which defines the increase or decrease of prices for a specific period. For the last 5 trading sessions, its performance is up 10.92% and up 7.58% for month. Its quarterly performance was 42.54% above, while its half year performance is up 1.13%. VMW yearly performance stood at negative -14.83% and fall -0.72% for year-to-date. Current recommendation for VMware Inc. is 2.20.

Earnings per share or EPS is an important financial measure, which defines the profitability of a company. VMW EPS (TTM) for 12-month is 3.28. EPS for this year is -39.20%, while for the next year its value is 7.14. Sales growth for the current quarter is 3.06 while its EPS Q/Q reached 3.30%. It has an EPS of 8.70% up for past five years and for the next five years will be up 15.00%.

Let’s take a look on the analyst recommendations on VMW for the current month and previous month. For the current month, 15 of 28 analysts recommend stock as Buy while 1 as Sell, 3 as overweight, 0 as underweight and 9 as Hold. As compared with the previous month ratings, 29 analysts participate in stock recommendation. Out of 29, 1 rated it sell, 15 rated it as Buy and 10 as Hold Ratings. On the other hand, target price ranges from $100.00-$210.00. Average target price for VMW was reached at $170.37.

Price (T.Rowe) Associates Inc, Blackrock Inc. and Vanguard Group, Inc. (The) are the top three holders in VMware Inc. (VMW) stock. On Mar 30, 2020, Price (T.Rowe) Associates Inc has 12.91 million shares which valued 1.56 billion. On Mar 30, 2020, Blackrock Inc. owned 5.95 million shares which valued at 720.65 million. On Mar 30, 2020, Vanguard Group, Inc. (The) has a total of 4.96 million shares which valued at 600.54 million. In the end, Vanguard Group, Inc. (The) have 4.43% shares outstanding of VMware Inc. (VMW) on Mar 30, 2020. The insider ownership moved to 22.50% and institutional holding shifted to 66.50%.

The company posted an EPS (TTM) of 3.28. According to the most recent quarter report on (Jul 2020), 23 analysts estimated an average EPS of 1.45, while 1.6 EPS posted a year ago period. Analyst Estimated EPS for VMW published in the report was 1.43-1.5 during the same period. Comparing with last year, the average estimated EPS was 1.6 which is higher than 1.52 which was posted for recent quarter EPS.

A brief look on simple moving average (SMA) that determines the market price can impact a market. The SMA for VMW rise 4.42% for period of 200 days. SMA for 50 days was 9.88% which is showing green signal, while SMA-20 was 4.72%. The moving average value for VMware Inc. (VMW) is 138.74 and 140.24 for 200 and 50 days respectively.

Let’s take a look on the insider transactions, in which multiple shareholders are showing interest in VMW stock. On Jun 15, POONEN SANJAY, COO, Customer Operations, sold 32,500 trading shares at the cost of $133.34, which valued at 4.33 million. On Jun 02, Brulard Jean Pierre, EVP, Worldwide Sales, sold 4,271 shares at the cost of $153.18, with total shares of 45,423. On May 04, RAMASWAMI RAJIV, COO, Products & Cloud Services, sold 14,862 shares at the cost of 124.73. After this transaction, RAMASWAMI RAJIV total shares reached to 55,734 which valued at 1.85 million.