Axciom Boosts Share Repurchase - Analyst Blog

By
A A A

In order to bolster investors' confidence, Acxiom Corporation ( ACXM ) 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 AOL Inc ( AOL ) and ServiceNow Inc ( NOW ).

Acxiom currently has a Zacks Rank #3 (Hold). One of its competitors, Unisys Corporation ( UIS ) carries a Zacks Rank #1 (Strong Buy).



ACXIOM CORP (ACXM): Free Stock Analysis Report

AOL INC (AOL): Free Stock Analysis Report

SERVICENOW INC (NOW): Free Stock Analysis Report

UNISYS (UIS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ACXM , AOL , NOW , UIS

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

64,159,633
  • $100.86 ▼ 0.76%
63,552,623
  • $16.71 ▼ 0.18%
60,140,251
  • $42.71 ▲ 0.38%
52,385,870
  • $17.51 ▲ 5.86%
50,329,585
  • $13.75 ▲ 29.84%
43,337,551
  • $16.16 ▼ 1.40%
40,126,911
  • $3.605 ▲ 0.56%
39,836,742
  • $3.81 ▼ 2.56%
As of 9/16/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com