Lexmark: Brainware, ISYS, and Kofax May Not Be Enough
July 5, 2015
Here I am. Sitting in the misty morn contemplating layoffs in the Louisville-Lexington region. At a Fourth of July party, the founder of a large Kentucky-based business reassured his listeners that there would be almost no layoffs as a result of the Aetna-Humana deal. I yawned.
My mind was not attending to the woes of Humana’s soon to be unemployed thousands. I was considering the news item I had just read on my trusty Blackberry Classic (right, no iPhone for me, gentle reader).
The short item was “Insider Selling: Lexmark International CFO David Reeder Sells 7,283 Shares of Stock (LXK).” Who was doing the selling? The person was David Reeder, the Lexmark chief financial officer. Perhaps Mr. Reeder has to send a child to school or must replace a cracking concrete driveway?
Lexmark beat some analyst estimates in its April 2015 quarterly statement. What’s the big deal?
The write up reports:
Several analysts have recently commented on the stock. Analysts at Goldman Sachs initiated coverage on shares of Lexmark International in a research note on Wednesday, June 17th. They set a “sell” rating and a $34.00 price target on the stock. Analysts at Zacks downgraded shares of Lexmark International from a “hold” rating to a “sell” rating in a research note on Wednesday, June 3rd. Analysts at Cross Research upgraded shares of Lexmark International from a “sell” rating to a “hold” rating and raised their price target for the stock from $36.00 to $43.00 in a research note on Thursday, May 14th. Analysts at Brean Capital reiterated a “hold” rating on shares of Lexmark International in a research note on Thursday, April 30th. Finally, analysts at TheStreet upgraded shares of Lexmark International from a “hold” rating to a “buy” rating in a research note on Tuesday, April 28th. Five analysts have rated the stock with a sell rating, four have issued a hold rating and two have assigned a buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $39.29.
My question is, “Will revenues from the content processing acquisitions ignite Lexmark’s revenues and pump up the profits?” My research suggests that Lexmark may find that making big money from content centric software is no picnic on a warm sunny day.
I am rooting for the printer company, but I am a realist. Some Lexmarkians may want to keep their résumés sparkling and bright. When a CFO sells shares, I pay attention.
Stephen E Arnold, July 5, 2015
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