VMware Inc.

VMware price targets raised at Jefferies, Raymond James

Jefferies analyst John DiFucci raised his price target on VMware Inc.'s stock to $185 from $171 after Dell's announcement that it would go public again via an unconventional route and convert its Class V shares, which currently track Dell's stake in VMware, into Class C shares of common stock. "In short, we do not see any incremental risks to VMW - the business or the common stock - as a result of this simplified holding co. structure, and frankly view it as positive as we believe it significantly reduces the likelihood of a reverse merger with Dell," DiFucci wrote. Raymond James analyst Michael Turits also raised his price target, to $174 from $153, due to the fact that the company is staying independent. VMware shares are down 0.6% in premarket trading but have gained 87% over the past 12 months. The S&P 500 has risen 12% in that time.

• Jul. 3, 2018 at 9:13 a.m. ET
• by Emily Bary

VMware stock price target raised to $174 from $153 at Raymond James

VMware stock price target raised to $174 from $153 at Raymond James

• Jul. 3, 2018 at 7:58 a.m. ET
• by Tomi Kilgore

VMware, Dell Technologies shares soar as Dell to convert Class V shares to Class C common stock

Shares of VMware Inc. rocketed 16% in and the Class V shares of Dell Technologies Inc. soared 14% in premarket trade Monday, both toward record highs, after VMWare announced an $11 billion one-time special dividend in connection with the Dell Technologies deal to convert Class V shares into Class C common stock, with a cash election option. Dell issued Class V shares after the EMC merger closed, which those shares having a 1-to-1 relationship with about 61% of VMware common stock owned by Dell. Under terms of the deal, the Class V shares will be converted into rights to receive 1.3665 Class C common stock, representing a total consideration to Class V shareholders of $21.7 billion. Or, Class V shareholders can choose instead to receive $109 a share in cash, which is 29% above Friday's closing price of $84.58, with the aggregate cash payout not to exceed $9 billion. The dividend Dell receives from VMware will be used to fund the deal, which is expected to be completed in the fourth quarter of 2018. "We are pleased to be in a position to return capital to stockholders through this one-time special dividend, which is the result of the exceptional performance of our business and our broad-based portfolio's strong cash flow generation," said VMware Chief Executive Pat Gelsinger. Dell's stock had gained 4.1% year to date through Friday, while VMware shares had run up 17% and the S&P 500 had gained 1.7%.

• Jul. 2, 2018 at 7:02 a.m. ET
• by Tomi Kilgore

Former Intel CTO doesn't want CEO job

Former Intel Corp. Chief Technology Officer and current VMware Inc. Chief Executive Pat Gelsinger said Friday he doesn't want the CEO spot at Intel. In a tweet, Gelsinger said that he "loved" the CEO job at VMware and that the "future is software." Former Intel CEO Brian Krzanich stepped down Thursday after the semiconductor giant said he had violated the company's policies through a consensual relationship with another employee. Intel stock is up 0.9% to $52.64 in early afternoon trading. Intel shares have climbed 14% this year as the benchmark S&P 500 index has gained 2.9%. The Dow Jones Industrial Average , of which Intel is a component, has fallen 0.4%.

• Jun. 22, 2018 at 3:10 p.m. ET
• by Max A. Cherney

Pivotal Software hits new highs after first earnings report since IPO

Pivotal Software Inc. jumped 8% in immediate after-hours trading Tuesday after the company released its first quarterly earnings report since an April initial public offering. Shares in the software company, a joint venture from VMware Inc. and EMC that is now majority owned by Dell Technologies Inc., hit price levels they have yet to see in regular trading. Pivotal reported a fiscal first-quarter net loss of $32.5 million, or 31 cents a share, on sales of $155.7 million, with revenue rising 28% from the same quarter a year ago and the net loss declining from 76 cents a share. After adjusting for stock-based compensation -- a hefty expense in the first quarter after an IPO -- Pivotal claimed a loss of 10 cents a share, after claiming adjusted losses of 20 cents a share a year ago. Analysts on average expected adjusted earnings of 13 cents a share on sales of $140.4 million, according to FactSet. Pivotal forecast full-year adjusted losses of 37 cents to 39 cents a share on revenue of $642 million to $649 million, easily beating the average analyst estimate of a loss of 45 cents a share on sales of $622 million, according to FactSet.

• Jun. 12, 2018 at 4:27 p.m. ET
• by Jeremy C. Owens

Bull ‘trend’ strengthens, S&P 500 extends breakout amid sector rotation

U.S. stocks are higher early Wednesday, rising amid easing trade-policy tensions. In the process, the Russell 2000 and Nasdaq Composite have extended breaks to uncharted territory, while the S&P 500 has concurrently tagged two-month highs.

• Jun. 6, 2018 at 11:43 a.m. ET
• by Michael Ashbaugh

Pivotal IPO falls short of recent cloud hysteria

The recent hysteria for new cloud-software stocks seemed to ease a bit Friday with Pivotal Software Inc.’s initial public offering, but there are obvious questions about whether that is an issue with Pivotal or if enthusiasm is waning overall.

• Apr. 23, 2018 at 7:00 a.m. ET
• by Therese Poletti

Pivotal Software files for IPO

• Mar. 23, 2018 at 2:30 p.m. ET
• by Emily Bary