In order to bolster investors' confidence,
) recently increased the size of its authorized repurchase
program from $150 million to $200 million.
Management's continuous effort to raise shareholders' value via
stock buybacks is quite commendable. Since Aug 2011, Acxiom has
bought back a total of 9.9 million shares for $131 million. Going
forward, the company intends to focus more on expanding its
client base and efficiently address the needs of small and
mid-tier customers. This augurs well for the long-term growth
prospects of the company.
Depending upon the market conditions, Acxiom is authorized to
repurchase shares in open market or privately negotiated
transactions over the next 12 months. In the last reported
quarter, Acxiom repurchased 1 million shares for $18.3
million. We believe that the company has adequate liquidity
to buyback shares. Acxiom ended Dec 31, 2012 with cash and cash
equivalents of $186.2 million.
Founded in 1969, Acxiom is headquartered in Little Rock,
Arkansas. The company also has offices throughout the
United States, Europe, South America, Asia-Pacific and the Middle
East. The company provides consumer data and analytics,
information technology, data integration, and consulting
solutions. The company is likely to benefit significantly from
its well-diversified business portfolio in terms of geographies,
products and markets.
However, the company faces intense competition from industry
bigwigs, which include formidable names such as
Acxiom currently has a Zacks Rank #3 (Hold). One of its
) carries a Zacks Rank #1 (Strong Buy).
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