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Logitech Recommends Marjorie Lao From LEGO for its Board

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Logitech International (LOGI - Free Report) recently announced that its board of directors (BOD) will seek shareholders’ approval to elect Marjorie Lao during the company’s annual general meeting (AGM) to be held on Sep 5 in Lausanne, Switzerland.

Currently, Marjorie has been holding the position of chief financial officer in LEGO Group. Prior to this, she held leadership positions in companies like Cisco Systems (CSCO - Free Report) , Procter & Gamble (PG - Free Report) and McKinsey & Company.

Guerrino De Luca, chairman of Logitech, commented that “It’s a pleasure to welcome Marjorie to Logitech. She brings with her extensive experience in global finance, senior leadership, business strategy and M&A from tech and brand marketing brands like Tandberg, Cisco and currently LEGO. She joins a fantastic team at an exciting time for Logitech.”

In connection with the appointment of Marjorie, the company revealed that the two non-executive members of Logitech's board of directors, Sally Davis and Sue Gove, “have decided not to stand for re-election to the board at the 2018 AGM when their current terms end.”

Apart from this, for fiscal 2018 the company’s board of directors has increased annual cash dividend payment by approximately 10% to CHF 0.67 per share. However, this is subject to final approval of the company's shareholders at the AGM. In this connection, the approximate payment date for the dividend is expected to be Sep 21, 2018.

The hike in dividend is believed to be in line with Logitech’s capital-return policy. It should be noted that in March 2017, the company’s board of directors authorized a three-year share repurchase program of $250 million. Additionally, the company has also increased the size of its cash dividend every year since fiscal 2013.

The company’s strong balance sheet and cash flow provide it with the financial flexibility to undertake shareholder-friendly initiatives. The company ended fiscal 2018 with cash and cash equivalents of nearly $642 million. Also, during the fiscal, the company generated a massive operating cash flow of $346 million, which marked the highest level in the last eight years.

We believe the cash return initiatives not only enhance shareholder return but also raise the market value of a stock. Through share repurchases and dividend payouts, companies boost investors’ confidence, persuading them to either buy or hold the script. Looking ahead, Logitech remains confident about its growth potential.

Notably, Logitech has appreciated 29% against the industry’s decline of 16% in the year-to-date period.



Zacks Rank & Other Stock to Consider

Currently, Logitech has a Zacks Rank #1 (Strong Buy).

Another top-ranked stock in the broader computer & technology sector is Micron Technology (MU - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Micron is currently pegged at 8.2%.

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