Citrix Systems (CTXS) Stock Rating Upgraded by Zacks Investment Research
Citrix Systems (NASDAQ:CTXS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “We expect high costs to hurt Citrix System's fourth-quarter earnings as has been the case for quite some time now. Also, declining revenues from the Product and Licenses unit might hurt the top line in the to-be-reported quarter. Detailed results are anticipated be out on Jan 31. Moreover, frequent management changes at the company have the potential to shake investors’ confidence in the stock. The company's results are also liable to be affected by foreign exchange movements as it continues to foray into non-U.S. markets. However, SaaS revenues are expected to be strong in the fourth quarter, thereby boosting the top line. In fact, the company has an impressive record with respect to earnings per share, having outshined the Zacks Consensus Estimate in each of the last four quarters. However, earnings estimates have been stable lately ahead of the company’s fourth-quarter earnings release.”
Several other analysts also recently commented on the company. Cowen downgraded Citrix Systems from an “outperform” rating to a “market perform” rating and increased their price objective for the stock from $90.00 to $93.00 in a research note on Thursday, January 11th. They noted that the move was a valuation call. Barclays downgraded Citrix Systems from an “overweight” rating to an “equal weight” rating and set a $90.00 price objective for the company. in a research note on Monday, January 8th. BidaskClub raised Citrix Systems from a “strong sell” rating to a “sell” rating in a research note on Friday, January 5th. Robert W. Baird reaffirmed a “buy” rating on shares of Citrix Systems in a research report on Thursday, January 4th. Finally, KeyCorp reaffirmed a “hold” rating on shares of Citrix Systems in a research report on Friday, November 10th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have assigned a buy rating to the stock. Citrix Systems presently has an average rating of “Hold” and an average target price of $89.50.
Citrix Systems (NASDAQ:CTXS) last issued its quarterly earnings data on Wednesday, October 25th. The cloud computing company reported $1.22 EPS for the quarter, topping the consensus estimate of $1.04 by $0.18. The firm had revenue of $691.00 million during the quarter, compared to the consensus estimate of $691.61 million. Citrix Systems had a return on equity of 31.32% and a net margin of 15.67%. The company’s quarterly revenue was up 3.3% compared to the same quarter last year. During the same period in the prior year, the business posted $1.32 earnings per share. equities analysts expect that Citrix Systems will post 3.93 EPS for the current fiscal year.
Citrix Systems declared that its Board of Directors has authorized a stock repurchase plan on Monday, November 13th that permits the company to buyback $1.70 billion in shares. This buyback authorization permits the cloud computing company to purchase shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its shares are undervalued.
In other Citrix Systems news, CEO David J. Henshall sold 12,500 shares of the stock in a transaction on Wednesday, November 8th. The stock was sold at an average price of $84.25, for a total transaction of $1,053,125.00. Following the completion of the transaction, the chief executive officer now directly owns 306,777 shares of the company’s stock, valued at $25,845,962.25. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Mark M. Coyle sold 2,500 shares of the stock in a transaction on Wednesday, November 8th. The shares were sold at an average price of $84.32, for a total value of $210,800.00. Following the transaction, the chief financial officer now directly owns 38,512 shares of the company’s stock, valued at $3,247,331.84. The disclosure for this sale can be found here. Over the last three months, insiders have sold 98,530 shares of company stock valued at $8,448,117. 0.44% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Veritable L.P. grew its holdings in Citrix Systems by 0.3% during the second quarter. Veritable L.P. now owns 4,477 shares of the cloud computing company’s stock valued at $356,000 after purchasing an additional 15 shares during the period. D.A. Davidson & CO. boosted its holdings in shares of Citrix Systems by 1.2% in the second quarter. D.A. Davidson & CO. now owns 23,240 shares of the cloud computing company’s stock worth $1,849,000 after acquiring an additional 265 shares during the period. Raymond James Financial Services Advisors Inc. boosted its holdings in shares of Citrix Systems by 6.5% in the second quarter. Raymond James Financial Services Advisors Inc. now owns 5,305 shares of the cloud computing company’s stock worth $422,000 after acquiring an additional 322 shares during the period. Norinchukin Bank The boosted its holdings in shares of Citrix Systems by 3.2% in the second quarter. Norinchukin Bank The now owns 10,488 shares of the cloud computing company’s stock worth $835,000 after acquiring an additional 328 shares during the period. Finally, PNC Financial Services Group Inc. boosted its holdings in shares of Citrix Systems by 3.5% in the second quarter. PNC Financial Services Group Inc. now owns 11,521 shares of the cloud computing company’s stock worth $918,000 after acquiring an additional 389 shares during the period. 94.23% of the stock is owned by institutional investors and hedge funds.
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Citrix Systems Company Profile
Citrix Systems, Inc offers Enterprise and Service Provider products, which include Workspace Services solutions and Delivery Networking products. The Company’s Enterprise and Service Provider products include Cloud Services solutions, and related license updates and maintenance, support and professional services.
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