We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Verint (VRNT) Announces Proposed Offering of $250M Senior Notes
Read MoreHide Full Article
Verint Systems (VRNT - Free Report) recently announced its intention to offer $250 million aggregate convertible senior notes due 2026. The interest rate, conversion rate and other terms of the notes are yet to be determined. The offering is subject to market and other conditions.
The notes will be offered to qualified institutional buyers only and in accordance with Rule 144A under the Securities Act of 1933, as amended. The company intends to give initial purchasers an option to buy up to an additional $287.5 million aggregate principal amount of notes.
Verint intends to use a certain portion of the net proceeds to pay the costs of capped call transactions. The remaining proceeds will be used to repay debt, repurchase its common stock and for other general corporate purposes.
At the end of fourth-quarter 2021, Verint’s cash and other cash equivalents totaled $741.9 million, up from $443.2 million in the prior-year quarter.
Long-term debt at fourth quarter-end was $402.8 million compared with $832.8 million in the corresponding quarter of 2020.
For full-year 2021, cash flow from operations was $253.8 million compared with $237.9 million in the prior year.
In our view, the stock offering is expected to boost financial flexibility and help Verint meet financial obligations in an efficient way. Moreover, the latest move provides it with ample scope to deploy capital for long-term growth opportunities and reward stockholders with higher returns.
To Conclude
Verint is a dominant provider of actionable intelligence solutions. The company is benefiting from the ongoing digital transformation, cloud migration and automation adoption. Verint’s top-line growth is being driven by strong demand from security solutions.
Its expanding product offerings, end-market strength and robust performance in key markets are growth drivers. The company continues to win new cloud customers and displace competitors due to open cloud platform innovations. During the last reported quarter, it won three large cloud deals, which is a big positive.
Share Price Performance
Verint has returned 11.3% in the past year, underperforming the industry’s 47.8% rally and S&P 500’s rise of 53.6%.
Long-term earnings growth for Analog Devices, NXP Semiconductors, and ON Semiconductor is currently projected at 12.3%, 10%, and 41.5%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Verint (VRNT) Announces Proposed Offering of $250M Senior Notes
Verint Systems (VRNT - Free Report) recently announced its intention to offer $250 million aggregate convertible senior notes due 2026. The interest rate, conversion rate and other terms of the notes are yet to be determined. The offering is subject to market and other conditions.
The notes will be offered to qualified institutional buyers only and in accordance with Rule 144A under the Securities Act of 1933, as amended. The company intends to give initial purchasers an option to buy up to an additional $287.5 million aggregate principal amount of notes.
Verint intends to use a certain portion of the net proceeds to pay the costs of capped call transactions. The remaining proceeds will be used to repay debt, repurchase its common stock and for other general corporate purposes.
Verint Systems Inc. Price and Consensus
Verint Systems Inc. price-consensus-chart | Verint Systems Inc. Quote
Cash Position
At the end of fourth-quarter 2021, Verint’s cash and other cash equivalents totaled $741.9 million, up from $443.2 million in the prior-year quarter.
Long-term debt at fourth quarter-end was $402.8 million compared with $832.8 million in the corresponding quarter of 2020.
For full-year 2021, cash flow from operations was $253.8 million compared with $237.9 million in the prior year.
In our view, the stock offering is expected to boost financial flexibility and help Verint meet financial obligations in an efficient way. Moreover, the latest move provides it with ample scope to deploy capital for long-term growth opportunities and reward stockholders with higher returns.
To Conclude
Verint is a dominant provider of actionable intelligence solutions. The company is benefiting from the ongoing digital transformation, cloud migration and automation adoption. Verint’s top-line growth is being driven by strong demand from security solutions.
Its expanding product offerings, end-market strength and robust performance in key markets are growth drivers. The company continues to win new cloud customers and displace competitors due to open cloud platform innovations. During the last reported quarter, it won three large cloud deals, which is a big positive.
Share Price Performance
Verint has returned 11.3% in the past year, underperforming the industry’s 47.8% rally and S&P 500’s rise of 53.6%.
Zacks Rank and Stocks to Consider
Verint currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Analog Devices, Inc. (ADI - Free Report) , NXP Semiconductors N.V. (NXPI - Free Report) and ON Semiconductor Corporation (ON - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Analog Devices, NXP Semiconductors, and ON Semiconductor is currently projected at 12.3%, 10%, and 41.5%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>