Citrix Systems (CTXS) Raised to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Citrix Systems (NASDAQ:CTXS) from a hold rating to a buy rating in a report published on Wednesday. The brokerage currently has $122.00 price objective on the cloud computing company’s stock.

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.”

A number of other research firms have also commented on CTXS. BidaskClub raised Citrix Systems from a hold rating to a buy rating in a research report on Saturday, September 1st. Barclays increased their target price on Citrix Systems from $112.00 to $114.00 and gave the stock an equal weight rating in a research report on Friday, September 7th. Bank of America decreased their target price on Citrix Systems from $123.00 to $116.00 and set a neutral rating for the company in a research report on Thursday, October 25th. Wedbush began coverage on Citrix Systems in a research report on Thursday, October 18th. They issued a neutral rating and a $115.00 target price for the company. Finally, Robert W. Baird decreased their target price on Citrix Systems from $120.00 to $105.00 and set a neutral rating for the company in a research report on Thursday, October 25th. One analyst has rated the stock with a sell rating, eight have given a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the stock. Citrix Systems has a consensus rating of Hold and a consensus target price of $114.21.

CTXS opened at $108.97 on Wednesday. The company has a market cap of $14.89 billion, a price-to-earnings ratio of 26.32, a price-to-earnings-growth ratio of 2.75 and a beta of 1.36. The company has a debt-to-equity ratio of 0.98, a current ratio of 0.83 and a quick ratio of 0.82. Citrix Systems has a one year low of $83.70 and a one year high of $116.82.

Citrix Systems (NASDAQ:CTXS) last released its quarterly earnings results on Wednesday, October 24th. The cloud computing company reported $1.40 EPS for the quarter, beating analysts’ consensus estimates of $1.25 by $0.15. The business had revenue of $732.47 million during the quarter, compared to analyst estimates of $722.76 million. Citrix Systems had a return on equity of 91.46% and a net margin of 4.27%. Citrix Systems’s quarterly revenue was up 6.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.22 EPS. Equities research analysts forecast that Citrix Systems will post 4.39 EPS for the current fiscal year.

Citrix Systems declared that its Board of Directors has initiated a stock repurchase program on Wednesday, October 24th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the cloud computing company to buy up to 5.4% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

The company also recently announced a quarterly dividend, which will be paid on Friday, December 21st. Stockholders of record on Friday, December 7th will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 1.28%. The ex-dividend date of this dividend is Thursday, December 6th.

In related news, Chairman Robert Calderoni sold 2,128 shares of the firm’s stock in a transaction that occurred on Thursday, November 1st. The stock was sold at an average price of $102.34, for a total transaction of $217,779.52. Following the completion of the transaction, the chairman now owns 138,772 shares of the company’s stock, valued at approximately $14,201,926.48. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Mark J. Ferrer sold 1,388 shares of the firm’s stock in a transaction that occurred on Tuesday, November 27th. The shares were sold at an average price of $107.41, for a total value of $149,085.08. Following the transaction, the executive vice president now directly owns 62,013 shares of the company’s stock, valued at approximately $6,660,816.33. The disclosure for this sale can be found here. Insiders sold a total of 21,893 shares of company stock valued at $2,335,582 in the last three months. Corporate insiders own 0.56% of the company’s stock.

A number of hedge funds have recently bought and sold shares of the stock. Banque Pictet & Cie SA increased its position in Citrix Systems by 0.5% during the 2nd quarter. Banque Pictet & Cie SA now owns 82,451 shares of the cloud computing company’s stock valued at $8,644,000 after buying an additional 450 shares in the last quarter. LPL Financial LLC increased its position in Citrix Systems by 1.4% during the 3rd quarter. LPL Financial LLC now owns 35,942 shares of the cloud computing company’s stock valued at $3,995,000 after buying an additional 484 shares in the last quarter. New Amsterdam Partners LLC NY increased its position in Citrix Systems by 16.5% during the 3rd quarter. New Amsterdam Partners LLC NY now owns 3,825 shares of the cloud computing company’s stock valued at $425,000 after buying an additional 541 shares in the last quarter. South State Corp increased its position in Citrix Systems by 7.6% during the 3rd quarter. South State Corp now owns 8,245 shares of the cloud computing company’s stock valued at $916,000 after buying an additional 579 shares in the last quarter. Finally, Commerce Bank increased its position in Citrix Systems by 15.2% during the 3rd quarter. Commerce Bank now owns 4,482 shares of the cloud computing company’s stock valued at $498,000 after buying an additional 593 shares in the last quarter.

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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