Zacks Investment Research lowered shares of Citrix Systems (NASDAQ:CTXS) from a buy rating to a hold rating in a research note issued to investors on Friday 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 are key positive. Traction witnessed by ShareFile is notable. The company also provided an impressive guidance. Efforts to reward shareholders through share buybacks are a positive. Buyout of Cedexis is likely to improve company’s operational performance. The company has deployed its Cloud services including XenDesktop and XenApp on Oracle Cloud Marketplace. This is likely to have led to new customer additions, consequently generating incremental revenues. Its strong customer base is another positive. Acquisition of Sapho will enable the company to fortify its competitive position in the rapidly growing desktop virtualization market. However, adverse foreign exchange movements remain a headwind.”

Several other brokerages also recently issued reports on CTXS. BidaskClub downgraded shares of Citrix Systems from a buy rating to a hold rating in a research report on Tuesday. Robert W. Baird lowered their price objective on shares of Citrix Systems from $120.00 to $105.00 and set a neutral rating for the company 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 objective for the company. Citigroup increased their price objective on shares of Citrix Systems from $120.00 to $124.00 and gave the stock a buy rating in a research report on Thursday, October 25th. Finally, Bank of America lowered their price objective on shares of Citrix Systems from $123.00 to $116.00 and set a neutral rating for the company in a research report on Thursday, October 25th. One research analyst has rated the stock with a sell rating, ten have given a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the stock. Citrix Systems currently has an average rating of Hold and an average price target of $114.21.

CTXS traded down $1.95 during mid-day trading on Friday, hitting $107.37. The stock had a trading volume of 2,327,287 shares, compared to its average volume of 1,517,383. The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.82 and a current ratio of 0.83. The firm has a market cap of $14.73 billion, a PE ratio of 25.93, a price-to-earnings-growth ratio of 2.72 and a beta of 1.37. Citrix Systems has a 1-year low of $83.70 and a 1-year high of $116.82.

Citrix Systems (NASDAQ:CTXS) last issued its quarterly earnings data on Wednesday, October 24th. The cloud computing company reported $1.40 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.25 by $0.15. Citrix Systems had a net margin of 4.27% and a return on equity of 91.46%. The company had revenue of $732.47 million during the quarter, compared to the consensus estimate of $722.76 million. During the same quarter in the prior year, the firm earned $1.22 earnings per share. The firm’s revenue was up 6.0% compared to the same quarter last year. Equities analysts forecast that Citrix Systems will post 4.39 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 21st. Investors of record on Friday, December 7th will be given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 1.30%. The ex-dividend date of this dividend is Thursday, December 6th. Citrix Systems’s dividend payout ratio (DPR) is currently 33.82%.

Citrix Systems declared that its board has authorized a share repurchase plan on Wednesday, October 24th that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the cloud computing company to reacquire up to 5.4% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

In related news, EVP Paul J. Hough sold 8,483 shares of the firm’s stock in a transaction on Friday, November 2nd. The shares were sold at an average price of $103.16, for a total value of $875,106.28. Following the completion of the transaction, the executive vice president now owns 54,988 shares of the company’s stock, valued at $5,672,562.08. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Robert Calderoni sold 2,128 shares of the firm’s stock in a transaction on Monday, December 3rd. The shares were sold at an average price of $110.14, for a total transaction of $234,377.92. The disclosure for this sale can be found here. In the last ninety days, insiders sold 27,783 shares of company stock valued at $2,973,266. 0.56% of the stock is owned by insiders.

Institutional investors have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC grew its position in shares of Citrix Systems by 414.0% in the 2nd quarter. Renaissance Technologies LLC now owns 1,751,190 shares of the cloud computing company’s stock valued at $183,595,000 after acquiring an additional 1,410,500 shares during the period. Millennium Management LLC grew its position in shares of Citrix Systems by 154.3% in the 2nd quarter. Millennium Management LLC now owns 1,331,695 shares of the cloud computing company’s stock valued at $139,615,000 after acquiring an additional 807,986 shares during the period. Vanguard Group Inc. grew its position in shares of Citrix Systems by 3.5% in the 3rd quarter. Vanguard Group Inc. now owns 14,060,558 shares of the cloud computing company’s stock valued at $1,562,972,000 after acquiring an additional 472,583 shares during the period. Janus Henderson Group PLC grew its position in shares of Citrix Systems by 624.4% in the 3rd quarter. Janus Henderson Group PLC now owns 512,741 shares of the cloud computing company’s stock valued at $56,996,000 after acquiring an additional 441,957 shares during the period. Finally, Schwab Charles Investment Management Inc. grew its position in shares of Citrix Systems by 81.6% in the 2nd quarter. Schwab Charles Investment Management Inc. now owns 927,034 shares of the cloud computing company’s stock valued at $97,191,000 after acquiring an additional 416,446 shares during the period. 99.76% of the stock is owned by institutional investors and hedge funds.

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.

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