David J. Henshall has stepped down as President, Chief Executive Officer (CEO), and board member
The shares of Citrix Systems Inc (NASDAQ:CTXS) are down 1.7% to trade at $104.16 at last check, after Citigroup downgraded the stock to “neutral” from “buy,” with a price-target cut to $115 from $140. This comes amid news of a leadership shake-up in the company, as David J. Henshall has stepped down as President, Chief Executive Officer (CEO), and board member, while Chair of Board of Directors Bob Calderoni has been named interim CEO, effective immediately.
This negative price action has CTXS adding to its 18.5% year-to-date deficit. The 100-day moving average has acted as a ceiling long term, and the 10-day trendline has guided the stock lower this week.
Today’s bear note has Citigroup joining an already pessimistic brokerage bunch. Ahead of today’s adjustments, six of the nine analysts in coverage carried a “hold” or worse rating. Elsewhere, short interest represents 4.2% of the security’s available float, or nearly three days’ worth of pent-up buying power.
Over in the options pits, CTXS is seeing two times its usual intraday options volume, with 365 calls and 770 puts across the tape so far. The weekly 10/29 104-strike put is the most popular, followed by the 103-strike put in the same series, with new positions being bought to open at both.
Plus, Citrix Systems stock is seeing relatively well-priced premiums at the moment, making now a good time to weigh in with options. The stock’s Schaeffer’s Volatility Index (SVI) of 26% stands higher than 25% of all other readings in its annual range, implying that options players are pricing in fairly low volatility expectations at the moment.