Zacks Investment Research Lowers Citrix Systems Inc. (CTXS) to Hold
Citrix Systems Inc. (NASDAQ:CTXS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Shares of Citrix Systems have outperformed the Zacks categorized 'Computer-software' industry on a year to date basis driven by its strong product portfolio and impressive earnings history. Citrix continues to expand its product offering through rapid innovation. The company is expected to benefit from its product diversification and operations across Desktop Virtualization and Cloud Infrastructure segments. We are positive on the proposed merger between LogMeIn and Citrix's GoTo business. Despite concern of adverse foreign exchange movement, we are, impressed with Citrix raising its earnings per share guidance (adjusted basis) for 2016 to a band of $5.18–$5.20 from $5.00–$5.10.”
Several other research analysts have also recently commented on the company. Vetr upgraded Citrix Systems from a “hold” rating to a “buy” rating and set a $87.24 price target on the stock in a research note on Tuesday, October 11th. Robert W. Baird restated an “outperform” rating and set a $100.00 price objective (up previously from $95.00) on shares of Citrix Systems in a research note on Saturday, October 22nd. Raymond James Financial Inc. restated a “market perform” rating on shares of Citrix Systems in a research note on Sunday, October 23rd. Cowen and Company upped their price objective on Citrix Systems from $95.00 to $97.00 and gave the company an “outperform” rating in a research note on Thursday, October 20th. Finally, Oppenheimer Holdings Inc. restated a “market perform” rating on shares of Citrix Systems in a research note on Thursday, October 20th. Two research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and nine have assigned a buy rating to the stock. Citrix Systems currently has a consensus rating of “Hold” and an average target price of $90.54.
Citrix Systems (NASDAQ:CTXS) traded down 1.01% during mid-day trading on Wednesday, hitting $87.05. The stock had a trading volume of 265,509 shares. The company has a 50-day moving average of $85.36 and a 200-day moving average of $85.10. Citrix Systems has a 12-month low of $60.91 and a 12-month high of $90.00. The stock has a market cap of $13.58 billion, a price-to-earnings ratio of 29.10 and a beta of 1.66.
Citrix Systems (NASDAQ:CTXS) last released its quarterly earnings results on Wednesday, October 19th. The cloud computing company reported $1.32 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.19 by $0.13. Citrix Systems had a return on equity of 32.90% and a net margin of 13.69%. The business had revenue of $841.30 million for the quarter, compared to analysts’ expectations of $827.21 million. During the same quarter in the previous year, the firm posted $1.04 earnings per share. The company’s revenue was up 3.4% compared to the same quarter last year. On average, analysts anticipate that Citrix Systems will post $5.20 earnings per share for the current fiscal year.
In other news, CFO David J. Henshall sold 300 shares of the stock in a transaction on Thursday, November 10th. The stock was sold at an average price of $87.50, for a total value of $26,250.00. Following the completion of the sale, the chief financial officer now owns 206,481 shares in the company, valued at $18,067,087.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Robert Calderoni sold 19,888 shares of the stock in a transaction on Friday, October 21st. The shares were sold at an average price of $85.79, for a total value of $1,706,191.52. Following the completion of the sale, the insider now owns 124,454 shares of the company’s stock, valued at approximately $10,676,908.66. The disclosure for this sale can be found here. 0.48% of the stock is owned by insiders.
Several hedge funds have recently added to or reduced their stakes in CTXS. Wellington Management Group LLP raised its stake in Citrix Systems by 516.0% in the first quarter. Wellington Management Group LLP now owns 148,678 shares of the cloud computing company’s stock worth $11,684,000 after buying an additional 124,543 shares during the last quarter. Arizona State Retirement System raised its stake in Citrix Systems by 0.5% in the first quarter. Arizona State Retirement System now owns 41,753 shares of the cloud computing company’s stock worth $3,281,000 after buying an additional 200 shares during the last quarter. Squarepoint Ops LLC acquired a new stake in Citrix Systems during the first quarter worth about $1,250,000. Ladenburg Thalmann Financial Services Inc. raised its stake in Citrix Systems by 242.3% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 10,705 shares of the cloud computing company’s stock worth $841,000 after buying an additional 7,578 shares during the last quarter. Finally, BlueMountain Capital Management LLC increased its position in Citrix Systems by 645.2% in the first quarter. BlueMountain Capital Management LLC now owns 8,115 shares of the cloud computing company’s stock worth $638,000 after buying an additional 7,026 shares during the period. Institutional investors own 95.70% of the company’s stock.
About Citrix Systems
Citrix Systems, Inc develops and sells products and services that enable delivery of applications and data over public, private or hybrid clouds or networks, to virtually any type of device. The Company operates through two segments: Enterprise and Service Provider, and Mobility Apps. The Company’s Enterprise and Service Provider segment consists of Workspace Services and Delivery Networking products.
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