Zacks Investment Research downgraded shares of Citrix Systems (NASDAQ:CTXS) from a hold rating to a sell rating in a research report sent to investors on Tuesday, December 26th.
According to Zacks, “Shares of Citrix Systems have underperformed its industry on a year-to-date basis due to multiple headwinds. High costs are limiting bottom-line growth at the company. Declining revenues from products also pose a severe challenge to the company. 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, the company's recent decision to clear a share buyback program, worth more than $2 billion, is encouraging. We are also impressed by the its efforts to expand product portfolio.”
A number of other brokerages have also recently commented on CTXS. BidaskClub cut Citrix Systems from a sell rating to a strong sell rating in a research note on Saturday, December 2nd. Robert W. Baird reaffirmed a buy rating and set a $90.00 target price on shares of Citrix Systems in a research report on Sunday, November 19th. KeyCorp reaffirmed a hold rating on shares of Citrix Systems in a research report on Friday, November 10th. Stifel Nicolaus decreased their price target on Citrix Systems from $77.00 to $76.00 and set a hold rating for the company in a report on Thursday, October 26th. Finally, Mizuho reiterated a buy rating and set a $94.00 price target (up from $92.00) on shares of Citrix Systems in a report on Wednesday, October 25th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the company. The stock has an average rating of Hold and a consensus target price of $89.00.
Shares of Citrix Systems (NASDAQ CTXS) opened at $90.04 on Tuesday. The stock has a market capitalization of $13,570.00, a P/E ratio of 27.96, a P/E/G ratio of 4.43 and a beta of 1.41. Citrix Systems has a 12-month low of $70.24 and a 12-month high of $91.83. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.43 and a current ratio of 1.44.
Citrix Systems (NASDAQ:CTXS) last released its earnings results on Wednesday, October 25th. The cloud computing company reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.04 by $0.18. Citrix Systems had a return on equity of 31.32% and a net margin of 15.67%. The firm had revenue of $691.00 million during the quarter, compared to analysts’ expectations of $691.61 million. During the same period in the prior year, the company earned $1.32 earnings per share. The company’s quarterly revenue was up 3.3% on a year-over-year basis. analysts forecast that Citrix Systems will post 3.93 EPS for the current fiscal year.
Citrix Systems declared that its board has approved a stock buyback program on Monday, November 13th that permits the company to buyback $1.70 billion in outstanding shares. This buyback authorization permits the cloud computing company to reacquire shares of its stock through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its shares are undervalued.
In related news, CEO David J. Henshall sold 12,500 shares of Citrix Systems stock in a transaction that occurred on Wednesday, November 8th. The shares were sold at an average price of $84.25, for a total value of $1,053,125.00. Following the sale, the chief executive officer now owns 306,777 shares of the company’s stock, valued at approximately $25,845,962.25. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Mark M. Coyle sold 2,500 shares of Citrix Systems stock in a transaction that occurred on Wednesday, January 3rd. The stock was sold at an average price of $88.90, for a total transaction of $222,250.00. Following the completion of the sale, the chief financial officer now directly owns 36,012 shares in the company, valued at approximately $3,201,466.80. The disclosure for this sale can be found here. In the last three months, insiders have sold 98,530 shares of company stock worth $8,448,117. Insiders own 0.44% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in CTXS. Veritable L.P. grew its position in shares of Citrix Systems by 0.3% during the 2nd 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 in the last quarter. D.A. Davidson & CO. grew its position in shares of Citrix Systems by 1.2% during the 2nd quarter. D.A. Davidson & CO. now owns 23,240 shares of the cloud computing company’s stock valued at $1,849,000 after purchasing an additional 265 shares in the last quarter. Greenwood Capital Associates LLC grew its position in shares of Citrix Systems by 12.0% during the 2nd quarter. Greenwood Capital Associates LLC now owns 2,689 shares of the cloud computing company’s stock valued at $214,000 after purchasing an additional 289 shares in the last quarter. Raymond James Financial Services Advisors Inc. grew its position in shares of Citrix Systems by 6.5% during the 2nd quarter. Raymond James Financial Services Advisors Inc. now owns 5,305 shares of the cloud computing company’s stock valued at $422,000 after purchasing an additional 322 shares in the last quarter. Finally, Norinchukin Bank The grew its position in shares of Citrix Systems by 3.2% during the 2nd quarter. Norinchukin Bank The now owns 10,488 shares of the cloud computing company’s stock valued at $835,000 after purchasing an additional 328 shares in the last quarter. Institutional investors and hedge funds own 94.22% of the company’s stock.
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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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