In order to bolster investors’ confidence, Acxiom Corporation (ACXM - Analyst Report) 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 and ServiceNow Inc (NOW - Snapshot Report) .
Acxiom currently has a Zacks Rank #3 (Hold). One of its competitors, Unisys Corporation (UIS - Analyst Report) carries a Zacks Rank #1 (Strong Buy).