NEW YORK (TheStreet) -- LifeLock (LOCK) stock is climbing 0.83% to $14.55 in after-hours trading on Monday after announcing that its board approved the repurchase of up to $100 million of the company's stock.
The share buyback represents roughly 7% of the company's outstanding common shares, and will likely be completed by the end of fiscal 2016, according to a statement.
"This share repurchase program reflects the board's confidence in the ongoing strength of LifeLock's business and its deep commitment to enhancing value for shareholders through both the return of capital and investing to build on our strong record of growth," Roy Guthrie, lead independent director, said in a statement.
Based in Tempe, AZ, LifeLock is a provider of proactive identity theft protection services for consumers and identity risk assessment and fraud protection services for enterprises.
Separately, TheStreet Ratings team rates LIFELOCK INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate LIFELOCK INC (LOCK) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Consumer Services industry. The net income has significantly decreased by 1295.3% when compared to the same quarter one year ago, falling from $5.45 million to -$65.15 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Diversified Consumer Services industry and the overall market, LIFELOCK INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $20.83 million or 20.26% when compared to the same quarter last year. Despite a decrease in cash flow of 20.26%, LIFELOCK INC is still significantly exceeding the industry average of -142.12%.
- The share price of LIFELOCK INC has not done very well: it is down 10.26% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- LIFELOCK INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, LIFELOCK INC reported lower earnings of $0.02 versus $0.55 in the prior year. This year, the market expects an improvement in earnings ($0.62 versus $0.02).
- You can view the full analysis from the report here: LOCK
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.