Citrix Systems (CTXS) Downgraded by Zacks Investment Research to “Hold”
Zacks Investment Research downgraded shares of Citrix Systems (NASDAQ:CTXS) from a buy rating to a hold rating in a research note released on Wednesday morning.
According to Zacks, “Citrix Systems is a provider of virtualization, networking and cloud computing solutions. The company is benefiting from robust adoption of its Subscription based services. Solid adoption of unified workspace solutions and hybrid cloud offerings is a key catalyst. Traction witnessed by ShareFile is notable. The company also provided an impressive guidance. Efforts to reward shareholders through share buybacks are a positive. Citrix stock has outperformed industry in the past year. Citrix has deployed its Cloud services including XenDesktop and XenApp on Oracle Cloud Marketplace. This is expected to garner new customer additions, consequently generating incremental revenues. Acquisition of Sapho will enable the company to fortify its competitive position in the rapidly growing desktop virtualization market. Buyout of Cedexis is likely to improve company’s operational performance. However, adverse foreign exchange movements remain a headwind.”
Several other brokerages have also recently weighed in on CTXS. BidaskClub cut shares of Citrix Systems from a buy rating to a hold rating in a research report on Tuesday, December 4th. Robert W. Baird lowered their price target on shares of Citrix Systems from $120.00 to $105.00 and set a neutral rating on the stock in a research report on Thursday, October 25th. Wedbush initiated coverage on shares of Citrix Systems in a research report on Thursday, October 18th. They set a neutral rating and a $115.00 price target on the stock. Citigroup boosted their price target on shares of Citrix Systems from $120.00 to $124.00 and gave the company a buy rating in a research report on Thursday, October 25th. Finally, Bank of America lowered their price target on shares of Citrix Systems from $123.00 to $116.00 and set a neutral rating on the stock in a research report on Thursday, October 25th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock has an average rating of Hold and a consensus target price of $114.00.
Citrix Systems (NASDAQ:CTXS) last announced its quarterly earnings results on Wednesday, October 24th. The cloud computing company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.25 by $0.15. The firm had revenue of $732.47 million for the quarter, compared to analysts’ expectations of $722.76 million. Citrix Systems had a net margin of 4.27% and a return on equity of 91.46%. The company’s revenue was up 6.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.22 EPS. As a group, analysts forecast that Citrix Systems will post 4.39 earnings per share for the current year.
Citrix Systems declared that its board has approved a share buyback plan on Wednesday, October 24th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the cloud computing company to reacquire up to 5.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.
The business also recently announced a quarterly dividend, which was paid on Friday, December 21st. Shareholders of record on Friday, December 7th were given a $0.35 dividend. The ex-dividend date of this dividend was Thursday, December 6th. This represents a $1.40 dividend on an annualized basis and a yield of 1.39%. Citrix Systems’s payout ratio is currently 33.82%.
In other Citrix Systems news, insider Robert Calderoni sold 2,128 shares of the company’s stock in a transaction dated Monday, December 3rd. The shares were sold at an average price of $110.14, for a total value of $234,377.92. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Jessica Soisson sold 1,466 shares of the company’s stock in a transaction dated Thursday, December 13th. The shares were sold at an average price of $110.77, for a total transaction of $162,388.82. Following the completion of the transaction, the vice president now directly owns 18,526 shares in the company, valued at approximately $2,052,125.02. The disclosure for this sale can be found here. Insiders sold 29,249 shares of company stock worth $3,135,655 in the last ninety days. 0.56% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Stratos Wealth Partners LTD. acquired a new stake in shares of Citrix Systems during the third quarter worth about $102,000. Captrust Financial Advisors lifted its position in shares of Citrix Systems by 2,623.7% during the third quarter. Captrust Financial Advisors now owns 1,035 shares of the cloud computing company’s stock worth $115,000 after purchasing an additional 997 shares in the last quarter. Fort L.P. acquired a new stake in shares of Citrix Systems during the second quarter worth about $120,000. Itau Unibanco Holding S.A. acquired a new stake in shares of Citrix Systems during the second quarter worth about $163,000. Finally, Moody Lynn & Lieberson LLC acquired a new stake in shares of Citrix Systems during the third quarter worth about $200,000. 99.52% of the stock is currently owned by institutional investors.
About Citrix Systems
Citrix Systems, Inc delivers solutions to secure and access applications worldwide. The company offers workspace services, including XenDesktop, a cloud-enabled desktop virtualization solution that gives customers the flexibility to deliver desktops and applications as a service from cloud and on-premises datacenters; and XenApp that allows Windows applications to be delivered as cloud services to Android and iOS mobile devices, Macs, PCs, and thin clients.
Further Reading: Why is the ex-dividend date different from the record date?
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