VMware (VMW) is Downgraded by Citigroup to Neutral

VMware (VMW) was Downgraded by Citigroup to ” Neutral”. Earlier the firm had a rating of “Buy ” on the company shares. Citigroup advised their investors in a research report released on Jul 26, 2016.

Many Wall Street Analysts have commented on VMware. Morgan Stanley Resumed VMware on Jul 25, 2016 to “Overweight”, Price Target of the shares are set at $86.Company shares were Reiterated by BMO Capital Markets on Jul 19, 2016 to “Market Perform”, Firm has raised the Price Target to $ 70 from a previous price target of $55 .Company shares were Reiterated by Mizuho on Jul 19, 2016 to “Neutral”, Firm has raised the Price Target to $ 61 from a previous price target of $52 .

On the company’s financial health, VMware reported $0.97 EPS for the quarter, beating the analyst consensus estimate by $ 0.01 according to the earnings call on Jul 18, 2016. Analyst had a consensus of $0.96. The company had revenue of $1693.00 million for the quarter, compared to analysts expectations of $1679.62 million. The company’s revenue was up 11.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.93 EPS.

VMware opened for trading at $68.55 and hit $70.42 on the upside on Wednesday, eventually ending the session at $69.95, with a gain of 2.52% or 1.72 points. The heightened volatility saw the trading volume jump to 39,46,103 shares. Company has a market cap of $29,678 M.

In a different news, on Jun 2, 2016, Sanjay Poonen (EVP, GM, EUC, Head Global Mktg) sold 5,500 shares at $60.08 per share price. According to the SEC, on May 19, 2016, S. Dawn Smith (Senior VP, Chief Legal Officer) sold 6,910 shares at $59.45 per share price. On May 3, 2016, Maurizio Carli (EVP, Worldwide Sales) sold 12,880 shares at $56.01 per share price, according to the Form-4 filing with the securities and exchange commission.

VMware Inc. is a provider of virtualization 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). The Company’s SDDC is designed to transform the data center into an on-demand service that addresses application requirements by abstracting pooling and automating the services that are required from the underlying hardware. The hybrid cloud computing enables customers to utilize off-premise vSphere-based hybrid cloud computing capacity. End-user computing enables information technology (IT) organizations to deliver secure access to data applications and devices to end users.


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