Market Update (NYSE:EMC): Exclusive – Francisco Partners, Elliott near Dell software deal – sources

[Reuters] – Buyout firm Francisco Partners and the private equity arm of activist hedge fund Elliott Management Corp are in advanced talks to acquire Dell Inc’s software division for more than $2 billion, three people familiar with the matter said. Divesting the software assets will help Dell refocus its technology portfolio and bolster its balance sheet after it agreed in October to buy data storage company EMC Corp for $67 billion. Read more on this. EMC Corporation (EMC) , currently valued at $54.28B, began trading this morning at $27.59. A quick look at the market, the company’s stock traded between $27.58 and $27.77 with a one year range of $22.66 to $28.77. EMC (EMC) shares are currently priced at 15.22x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 15.04x earnings multiple for the same period. And for those looking to make a return holding the stock, the company pays shareholders $0.46 per share annually in dividends, yielding 1.68%. In a review of the consensus earnings estimate this quarter, 25 sell-side analysts are looking at $0.42 per share, which would be $0.01 worse than the year-ago quarter and a $0.00 sequential decrease. The full-year EPS estimate is $1.80, which would be a $0.02 better than last year. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $6.00 Billion. If realized, that would be a 1.15% decrease over the year-ago quarter. More recently, Sterne Agee CRT downgraded EMC from Buy to Neutral (Jun 2, 2016). Previously, UBS downgraded EMC from Buy to Neutral. With the above information in mind, readers should note that the average price target is $28.87, which is 4.64% above where the stock opened this morning. See more in (NYSE:EMC) Similar Articles: Market Update: EMC Corporation (NYSE:EMC) – Dell Said to Boost Bond Deal for EMC Buyout to $20 Billion Company Update (NYSE:EMC): EMC says Dell deal still on track despite missing expectations Market Update (NYSE:EMC): EXCLUSIVE – EU set to clear Dell’s $67 billion deal to buy EMC: sources