Dodge & Cox recently announced the acquisition of new stake in VMware Inc. (NYSE:VMW). The institutional investor has increased its shareholding in the Technology company by 1,256.21% to 6.13 million shares with purchase of 5.67 million shares. This fresh investment now brings its stake to 5.48% valued currently at $858.92 million. In addition, The Vanguard Group, Inc. raised its holdings by 24064.0 to 4.78 million shares. And ClearBridge Investments LLC has lifted its position by 16.15% or 0.58 million shares – to 4.19 million shares.
With over 1.43 million VMware Inc. (VMW) shares trading Tuesday and a closing price of $141.28 on the day, the dollar volume was approximately $202.2 million. The shares have shown a positive weekly performance of 0.42% and its price on 09/01/20 lost nearly -2.19%. Currently, there are 418.38M common shares owned by the public and among those 78.51M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 27 analysts who have offered their price forecasts for VMW have a consensus price objective of $175.13. The analysts have set the share’s price value over the next 12 months at a high of $200.00 and a low of $149.00 should the stock experience a downside. Incidentally, analysts’ outlook for the VMware Inc. stock is 1.90 for the next 12 months. The average price target is 19.38% above its last price level and an upside to the estimated low will see the stock gain 5.18% over that period. But an upside of 29.36% will see the stock hit the forecast high price target while mean target price for the stock is $175.00.
Insiders at the company have transacted a total of 114 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 23 of these insider trades were purchases, accounting for 933,980 shares. Insider sales of the common stock occurred on 91 occasions, with total insider shares sold totaling 1,058,855 shares.
The top 3 mutual fund holders in VMware Inc. are Dodge & Cox Funds – Stock Fund, Vanguard Total Stock Market Index, and Swedbank Robur Technology. Dodge & Cox Funds – Stock Fund owns 3.81 million shares of the company’s stock, all valued at over $534.54 million. The company bought an additional 3.63 million shares recently to bring their total holdings to about 3.41% of the shares outstanding. Vanguard Total Stock Market Index sold 6461.0 shares to see its total holdings shrink to 2.2 million shares valued at over $308.72 million and representing 1.97% of the shares outstanding. Swedbank Robur Technology bought 0.4 million shares to bring its total holdings to over 1.9 million shares at a value of $266.4 million. Swedbank Robur Technology now owns shares totaling to 1.70% of the shares outstanding.
Shares of VMware Inc. (NYSE: VMW) opened at $142.40, down -$2.04 from a prior closing price of $144.44. However, the script later closed the day at $141.28, down -2.19%. The company’s stock has a 5-day price change of 0.42% and -5.43% over the past three months. VMW shares are trading -6.92% year to date (YTD), with the 12-month market performance down to -0.74% lower. It has a 12-month low price of $86.00 and touched a high of $173.37 over the same period. Currently, 1.43 million shares have been traded, compared to an average intraday trading volume of 1.44 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.05%, -1.45%, and -0.13% respectively.
Institutional ownership of VMware Inc. (NYSE: VMW) shares accounts for 71.00% of the company’s 418.38M shares outstanding. Mutual fund holders own 37.92%, while other institutional holders and individual stakeholders account for 68.43% and 32.34% respectively.
It has a market capitalization of $57.91B and a beta (3y monthly) value of 0.66. The stock’s trailing 12-month PE ratio is 33.06, while the earnings-per-share (ttm) stands at $4.27. The company has a PEG of 3.44 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 1.05. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.69% over the week and 2.43% over the month.
Analysts forecast that VMware Inc. (VMW) will achieve an EPS of $1.44 for the current quarter, $1.89 for the next quarter and $7.34 for 2022. The lowest estimate earnings-per-share for the quarter is $1.42 while analysts give the company a high EPS estimate of $1.58. Comparatively, EPS for the current quarter was $1.49 a year ago. Earnings per share for the fiscal year are expected to decrease by -39.20%, and 10.90% over the next financial year. EPS should grow at an annualized rate of 9.60% over the next five years, compared to 8.80% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 27 brokerage firm advisors rate VMware Inc. (VMW) as a “Strong Buy” at a consensus score of 1.90. Specifically, 17 Wall Street analysts polled rate the stock as a buy, while 7 of the 27 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the VMW, a number of firms have released research notes about the stock. RBC Capital Mkts stated their Outperform rating for the stock in a research note on August 28, 2020, with the firm’s price target at $181-$185. Citigroup coverage for the VMware Inc. (VMW) stock in a research note released on August 28, 2020 offered a Buy rating with a price target of $200. Barclays was of a view on August 28, 2020 that the stock is Overweight, while Stifel gave the stock Buy rating on June 24, 2020, issuing a price target of $166- $196. Wells Fargo on their part issued Overweight rating on May 29, 2020.