Citrix Jumps on Report Cloud Provider May Look for a Buyer By Investing.com

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© Reuters.

By Dhirendra Tripathi

Investing.com – Citrix stock (NASDAQ:) traded 5.4% higher in Wednesday’s premarket on a Bloomberg report that the Cloud-services provider is again exploring a sale.

The company had last attempted a similar exercise in 2017 before calling it off over valuations. The latest exercise comes after hedge fund Elliott recently disclosed a stake of more than 10% in the company.

Citrix plans to gauge the interest of potential buyers over the next few weeks, according to the Bloomberg report. A final decision hasn’t been made yet and Citrix right remain a standalone entity, the report said.

The company’s stock price has suffered, lagging the S&P 500 . It has fallen almost 19% in a year while the Nasdaq 100 index has gained 36%. 

Elliott is known to chase companies to take steps to increase shareholder returns. This includes moves like reshuffling top management, forcing buybacks, and demands for better capital allocation.

Citrix offers Cloud-computing services that include enabling users to access desktops from remote locations. While those capabilities were in big demand during the pandemic and will continue to be in the work-from-home paradigm, the company has taken time to transition to a subscription model.

 

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