Investing

8 Buybacks and Dividends Just Too Big to Ignore

Citrix Systems

Citrix Systems Inc. (NASDAQ: CTXS) may have an activist dream plan for billions worth of buybacks ahead with Elliott Management taking a 7% stake or so this year, with the activist aiming for shares to rise to north of $90 if the market cooperates. Citrix announced in September that its board of directors authorized up to an additional $500 million worth common stock to be repurchased. This is on top of existing buybacks.

In its fiscal year 2014, Citrix bought back 26.1 million shares (21.8 million of which were under an accelerated share repurchase agreement) at an average price of $64.00, for a total spend of $1.67 billion. Shares are now trading at about $70.50, and the market cap is $11.3 billion. Its consensus price target is $76.61 and its 52-week range is $56.47 to $78.42.

H&R Block

H&R Block Inc. (NYSE: HRB) has scored handily since getting out from under its H&R Block Bank. Now it is back to a tax-prep and financial services shop. The company’s divestment completion was followed with the news at the start of September that its board of directors approved a whopping $3.5 billion to be allocated for share buybacks. Some $1.5 billion was earmarked for a “modified Dutch auction” tender offer for up to $1.5 billion in shares at “not less than $32.25 and not greater than $37.00” with an expiration at the close of business on Friday, October 2, 2015.

While this was under a new credit facility, H&R Block’s market is just under $10 billion now, with shares at $36.15, but its stock was 10% lower and closer to $33.00 when the announcement was made. H&R Block shares have a consensus price target of $41.70 and a 52-week range of $27.42 to $36.29.

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JD.com

As one of Alibaba’s competitors, JD.com Inc. (NASDAQ: JD) has been slaughtered with the woes in China. Alibaba announced a buyback, which seemed way too soon to do. Now JD.com is out with a buyback announcement of its own after its shares were shelled during the China sell-off. To show just how bad the drop was, shares fell from almost $35 to under $25 from August 5 to August 20 alone.

To stave off the bleeding, JD.com’s board of directors authorized a share repurchase program of up to $1 billion worth of its American depositary shares over the next two years. JD.com has a market cap of $33 billion. This represents around 80 million shares at current prices, which translates to more than seven days worth of trading volume and to just over 6% of its outstanding shares. At $24.26, it has a 52-week range of $21.55 to $38.00.

Monster Beverage

Monster Beverage Corp. (NASDAQ: MNST) already had a $200 million buyback plan. After the close of trading on Friday came an official announcement that its board of directors has authorized a new share buyback plan that will allow the company to repurchase of up to $500 million of its outstanding common stock. The maker of energy drinks has said that there was no availability remaining under the previously authorized $200 million share repurchase program.

Monster fans have three things to consider here. The first is that the new $500 million is against a $27 billion market cap, and the second is that its Coca-Cola partnership became official and effective in June, adding $2 billion to its books. The third issue would be the impact of the new case and the buyback’s impact on the balance sheet and the Coca-Cola stake. At $132.77, Monster has a consensus price target of almost $160.00 and a 52-week range of $88.93 to $155.83.

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