What Next for VMware, Inc. Stock After Today’s Bearish Options Activity?

 What Next for VMware, Inc. Stock After Today's Bearish Options Activity?

In today’s session VMware, Inc. (VMW) recorded an unusually high (612) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious VMW decrease. With 612 contracts traded and 7324 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: VMW170120P00080000 closed last at: $4.6 or 9.8% down. About 348,616 shares traded hands. VMware, Inc. (NYSE:VMW) has risen 49.05% since March 31, 2016 and is uptrending. It has outperformed by 46.53% the S&P500.

VMware, Inc. (NYSE:VMW) Ratings Coverage

Out of 35 analysts covering VMware Inc (NYSE:VMW), 11 rate it a “Buy”, 0 “Sell”, while 24 “Hold”. This means 31% are positive. VMware Inc has been the topic of 72 analyst reports since July 22, 2015 according to StockzIntelligence Inc. The rating was downgraded by Mizuho on Monday, October 12 to “Neutral”. The company was downgraded on Wednesday, October 21 by Susquehanna. Maxim Group downgraded it to “Hold” rating and $75 target price in Wednesday, October 21 report. As per Thursday, October 27, the company rating was upgraded by Citigroup. Macquarie Research maintained the stock with “Buy” rating in Tuesday, September 1 report. The stock of VMware, Inc. (NYSE:VMW) earned “Market Perform” rating by BMO Capital Markets on Wednesday, January 27. The stock has “Hold” rating given by Drexel on Wednesday, October 21. The stock of VMware, Inc. (NYSE:VMW) has “Neutral” rating given on Wednesday, October 21 by Macquarie Research. The stock has “Buy” rating given by Drexel Hamilton on Tuesday, October 27. William Blair maintained the shares of VMW in a report on Sunday, September 6 with “Market Perform” rating.

According to Zacks Investment Research, “VMware provides virtualization solutions from the desktop to the data center. Their solutions enable organizations to aggregate multiple servers, storage infrastructure and networks together into shared pools of capacity that can be allocated dynamically, securely and reliably to applications as needed, increasing hardware utilization and reducing spending. They have expanded their offering with virtual infrastructure automation and management products to address distributed and heterogeneous infrastructure challenges such as system recoverability and reliability, backup and recovery, resource provisioning and management, capacity and performance management and desktop security. They derive a significant majority of their revenues from their indirect sales channel that include distributors, resellers, x86 system vendors and systems integrators.”

Insitutional Activity: The institutional sentiment increased to 1.07 in Q2 2016. Its up 0.04, from 1.03 in 2016Q1. The ratio improved, as 47 funds sold all VMware, Inc. shares owned while 105 reduced positions. 57 funds bought stakes while 105 increased positions. They now own 90.43 million shares or 5.40% more from 85.80 million shares in 2016Q1.
Strs Ohio reported 47,931 shares or 0.01% of all its holdings. New York State Common Retirement Fund owns 230,700 shares or 0.02% of their US portfolio. Picton Mahoney Asset Management last reported 0.07% of its portfolio in the stock. Patten Group Inc reported 35 shares or 0% of all its holdings. The Pennsylvania-based Brick Kyle Associate has invested 0% in VMware, Inc. (NYSE:VMW). American Grp Incorporated Incorporated has 0% invested in the company for 1,751 shares. Fairpointe Cap Ltd reported 15,800 shares or 0.02% of all its holdings. Jane Street Grp Ltd Company has 0.05% invested in the company for 170,098 shares. California State Teachers Retirement Systems has invested 0.02% of its portfolio in VMware, Inc. (NYSE:VMW). Cornerstone Cap Management Holdings Lc reported 26,746 shares or 0.01% of all its holdings. Glenmede Tru Na holds 1.33 million shares or 0.46% of its portfolio. The New Jersey-based Kcg Holding has invested 0.04% in VMware, Inc. (NYSE:VMW). Ls Investment Advisors Ltd Limited Liability Company holds 0.01% or 2,617 shares in its portfolio. Scotia Capital holds 0.01% of its portfolio in VMware, Inc. (NYSE:VMW) for 4,600 shares. Cubist Systematic Strategies Ltd Llc has 107,079 shares for 0.36% of their US portfolio.

Insider Transactions: Since May 17, 2016, the stock had 0 insider purchases, and 5 selling transactions for $1.37 million net activity. $505,931 worth of VMware, Inc. (NYSE:VMW) was sold by Krysler P. Kevan on Wednesday, July 27. $48,285 worth of VMware, Inc. (NYSE:VMW) was sold by Smith S. Dawn. $330,440 worth of shares were sold by POONEN SANJAY on Tuesday, May 31.

VMware, Inc. is a provider of virtualization infrastructure solutions and cloud infrastructure solutions. The company has a market cap of $32.96 billion. The Firm develops and markets its product and service offerings within three product groups, which include software-defined data center , hybrid cloud computing and end-user computing (EUC). It has a 31.48 P/E ratio. The Company’s compute virtualization includes offerings that allow organizations to manage Information technology (IT) resources across private clouds and complex multi-cloud, and multi-device environments.

VMW Company Profile

VMware, Inc., incorporated on February 10, 1998, is a well-known provider of virtualization infrastructure solutions and cloud infrastructure solutions. The Firm 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 compute virtualization includes offerings that allow organizations to manage Information technology (IT) resources across private clouds and complex multi-cloud, and multi-device environments.

More notable recent VMware, Inc. (NYSE:VMW) news were published by: Profitconfidential.com which released: “VMware, Inc.: A Major Price Shock in VMW Stock Is Expected” on October 27, 2016, also Investorplace.com with their article: “VMWare, Inc. (VMW) and Amazon.com, Inc. (AMZN) Herald the Death of Old Data …” published on October 14, 2016, Profitconfidential.com published: “VMware, Inc.: VMW Stock Chart Suggests Price Surge Is Brewing” on October 05, 2016. More interesting news about VMware, Inc. (NYSE:VMW) were released by: Benzinga.com and their article: “Stocks Hitting 52-Week Highs” published on November 01, 2016 as well as Seekingalpha.com‘s news article titled: “Amazon Cloud Partnership A Big Win For VMware” with publication date: October 24, 2016.

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