In a concerted effort to return cash to shareholders,
Lender Processing Services, Inc.
) recently authorized a new $100 million share repurchase program
to purchase common stock over a period of time through the open
market or negotiated transactions. The company intends to
complete the share repurchase program by Jun 30, 2014. The
current share repurchase program replaces the company's erstwhile
share repurchase authorization that expired at year-end 2012.
FIDELITY NAT IN (FIS): Free Stock Analysis
GLOBAL PAYMENTS (GPN): Free Stock Analysis
HEARTLAND PAYMT (HPY): Free Stock Analysis
LENDER PROC SVC (LPS): Free Stock Analysis
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Lender Processing expects to fund the share repurchases through
available cash. At year-end 2012, cash and cash equivalents of
the company aggregated $236.2 million. The company also expects
to generate significant cash flow to further repurchase shares
and maintain a steady dividend payout. Net cash provided by
operating activities in the last reported quarter stood at $434.5
In addition, the company also authorized a regular quarterly
dividend of 10 cents per share, which is payable on Mar 21, 2013,
to shareholders of record as of Mar 7. Lender Processing has
historically maintained a steady dividend payout and based on the
closing price of $25.40 as of Feb 8, 2013, the current dividend
affirms a yield of 1.60%.
Moving forward, Lender Processing is well positioned to enhance
the mortgage value chain and deliver innovative technology, data
and expertise to its clients. The rapidly growing mortgage
landscape continues to create new requirements for its clients.
Also, the recent conclusions of many of the company's legal
matters allow it to focus more on growth and innovation to create
new opportunities for the company.
However, the company needs to be wary of intense competition from
industry bigwigs, which include formidable names such as
Heartland Payment Systems Inc.
Global Payments Inc.
Fidelity National Information services, Inc.
), each carrying a Zacks Rank #2 (Buy). However, Lender
Processing currently has a Zacks Rank #4 (Sell).