Citrix Systems (CTXS) Upgraded to “Hold” by Zacks Investment Research

Zacks Investment Research upgraded shares of Citrix Systems (NASDAQ:CTXS) from a sell rating to a hold rating in a report published on Tuesday morning.

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 research analysts have also commented on CTXS. Wells Fargo & Co raised shares of Citrix Systems from a market perform rating to an outperform rating and lifted their price target for the company from $82.50 to $95.00 in a report on Monday, October 2nd. Robert W. Baird set a $90.00 target price on shares of Citrix Systems and gave the company a buy rating in a research note on Friday, October 6th. Royal Bank of Canada reissued a hold rating and set a $85.00 target price on shares of Citrix Systems in a research note on Tuesday, October 10th. Mizuho reissued a buy rating and set a $94.00 target price (up from $92.00) on shares of Citrix Systems in a research note on Wednesday, October 25th. Finally, Stifel Nicolaus reduced their target price on shares of Citrix Systems from $77.00 to $76.00 and set a hold rating for the company in a research note on Thursday, October 26th. Two 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’s stock. The stock has an average rating of Hold and an average price target of $89.00.

Citrix Systems (NASDAQ:CTXS) traded up $1.23 during midday trading on Tuesday, hitting $91.19. 1,069,349 shares of the stock traded hands, compared to its average volume of 1,295,027. Citrix Systems has a 1-year low of $70.24 and a 1-year high of $91.83. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.44 and a quick ratio of 1.43. The firm has a market cap of $13,740.00, a price-to-earnings ratio of 28.32, a PEG ratio of 4.45 and a beta of 1.41.

Citrix Systems (NASDAQ:CTXS) last posted its quarterly earnings results on Wednesday, October 25th. The cloud computing company reported $1.22 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.04 by $0.18. Citrix Systems had a net margin of 15.67% and a return on equity of 31.32%. The business had revenue of $691.00 million during the quarter, compared to analyst estimates of $691.61 million. During the same period in the previous year, the business posted $1.32 EPS. The company’s quarterly revenue was up 3.3% on a year-over-year basis. equities research analysts expect that Citrix Systems will post 3.93 earnings per share for the current year.

Citrix Systems declared that its board has initiated a share 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 generally a sign that the company’s leadership believes its stock is undervalued.

In other Citrix Systems news, CFO Mark M. Coyle sold 2,500 shares of the business’s stock in a transaction dated Wednesday, January 3rd. The shares were sold at an average price of $88.90, for a total transaction of $222,250.00. Following the sale, the chief financial officer now directly owns 36,012 shares in the company, valued at approximately $3,201,466.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO David J. Henshall sold 12,500 shares of the business’s stock in a transaction dated Friday, December 1st. The stock was sold at an average price of $88.31, for a total transaction of $1,103,875.00. Following the sale, the chief executive officer now owns 294,277 shares in the company, valued at $25,987,601.87. The disclosure for this sale can be found here. Insiders have sold a total of 98,530 shares of company stock valued at $8,448,117 over the last three months. 0.44% of the stock is currently owned by company insiders.

Several hedge funds have recently added to or reduced their stakes in the business. Farallon Capital Management LLC raised its position in shares of Citrix Systems by 8.2% during the 2nd quarter. Farallon Capital Management LLC now owns 1,606,673 shares of the cloud computing company’s stock worth $127,859,000 after buying an additional 121,549 shares in the last quarter. BT Investment Management Ltd raised its position in shares of Citrix Systems by 11.7% during the 3rd quarter. BT Investment Management Ltd now owns 1,314,871 shares of the cloud computing company’s stock worth $101,020,000 after buying an additional 138,032 shares in the last quarter. Schroder Investment Management Group raised its position in shares of Citrix Systems by 0.9% during the 3rd quarter. Schroder Investment Management Group now owns 1,267,628 shares of the cloud computing company’s stock worth $97,221,000 after buying an additional 10,876 shares in the last quarter. Numeric Investors LLC raised its position in shares of Citrix Systems by 61.4% during the 2nd quarter. Numeric Investors LLC now owns 1,156,334 shares of the cloud computing company’s stock worth $92,021,000 after buying an additional 439,821 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Citrix Systems by 22.2% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,100,626 shares of the cloud computing company’s stock worth $87,588,000 after buying an additional 200,291 shares in the last quarter. Institutional investors own 94.23% of the company’s stock.

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About Citrix Systems

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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