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LXK $40.49

LXK target price
40.49
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Lexmark International, Inc.
Type
Private
Predecessor Printer and printer supply operations of IBM
Founded 1991; 26 years ago (1991)
Headquarters Lexington, Kentucky, U.S
Area served
Worldwide
Products
  • Business process management
  • Document management system
  • Enterprise Content Management
  • Managed Print Services
  • Enterprise output management
  • Printers
  • Toner
Revenue IncreaseUS$3.711 billion (2014)
Operating income
DecreaseUS$149.2 million (2014)
Net income
DecreaseUS$79 million (2014)
Total assets IncreaseUS$3.633 billion (2014)
Total equity DecreaseUS$1.281 billion (2014)
Owners
  • Apex (51%)
  • PAG Asia Capital (43%)
  • Legend Holdings (6%)
Number of employees
12,700 (December 2014)
Website www.lexmark.com

Lexmark International, Inc. is a Chinese-owned corporation based in the United States that manufactures laser printers and imaging products. The company is headquartered in Lexington, Kentucky.

Lexmark was formed on March 27, 1991 when IBM divested a number of its hardware manufacturing operations, including printer and printer supply operations, to the investment firm Clayton, Dubilier & Rice, Inc. in a leveraged buyout. Lexmark became a publicly traded company on the New York Stock Exchange on November 15, 1995.

It was reported in April 2016 that Lexmark would be acquired by Apex Technology and PAG Asia Capital for $3.6 billion USD. Lexmark was set to be acquired at $40.50 per share in the transaction. Initial talks for the acquisition were begun at the Remax World Expo in 2015. The deal was closed on November 29, 2016. Lexmark stated that its headquarters would remain in Lexington, and that its enterprise software line of business would be spun off and "rebranded" to Kofax.

The firm's corporate headquarters is located in Lexington and research and development (R&D) offices are distributed globally with additional R&D facilities located in Boulder, Colorado; Lenexa, Kansas; Cebu, Philippines; Kolkata, West Bengal, India; Berlin, Germany; Stockholm, Sweden and Irvine, California. Lexmark has offices throughout North and South America, Asia, Africa and Europe. The company has more than 12,000 employees worldwide.

In August 2012, Lexmark announced that it would stop production of its inkjet printer line. Lexmark will continue to provide service, support and aftermarket supplies for its inkjet installed base.

In April 2013, Funai Electric Company, Ltd. announced that it had signed an agreement to acquire Lexmark's inkjet technology and assets for approximately $100 million (approximately ¥9.5 billion). Funai acquired more than 1,500 inkjet patents, Lexmark's inkjet-related research and development assets and tools, all outstanding shares and the manufacturing facility of Lexmark International (Philippines), Inc., and other inkjet-related technologies and assets.

Lexmark pioneered the use of profits from ink cartridges as a business model, with the result of modifying the legal models of product ownership and patent exhaustion over several years.

A court victory in 2005 was handed to Lexmark in the case of ACRA v. Lexmark. This case states that Lexmark can enforce the "single use only" policy written on the side of Lexmark printer cartridge boxes sold to certain large customers at a discount, with the understanding that the customers will return the cartridges to Lexmark after using them. This means that these customers can face lawsuits if they breach the agreements, and do not return the cartridges.

Also in 2005, Lexmark suffered a legal defeat in the case of Lexmark Int'l v. Static Control Components, when the U.S. Supreme Court rejected Lexmark's petition for a writ of certiorari, thereby rejecting their attempt to have the Court hear their case. In this case, the defendant was a manufacturer of microchips that allowed third-party ink and toner cartridges to work on printers, including many manufactured by Lexmark. Such printers incorporated a feature that would require authentication from a microchip within the ink/toner cartridge in order to function; this was designed to prohibit users from refilling the cartridges. However, a recent firmware update allowed Lexmark to prevent end users from refilling ink cartridges or using third-party ink cartridges.

Lexmark also lost in the Supreme Court case Impression Products, Inc. v. Lexmark International, Inc. in 1 7-1 ruling that reversed and remanded a Federal Circuit court decision (30 May 2017):

When a patentee chooses to sell an item, that product is no longer within the limits of the monopoly and instead becomes the private, individual property of the purchaser, with the rights and benefits that come along with ownership. A patentee is free to set the price and negotiate contracts with purchasers, but may not, by virtue of his patent, control the use or disposition of the product after ownership passes to the purchaser. The sale terminates all patent rights to that item.

Q reports

Period Date Adjusted Actuals EPS GAAP EPS

Ratings

2016-04-28 Reiterated Rating Credit Suisse Hold
2016-04-28 Reiterated Rating Credit Suisse Group AG Hold
2016-04-22 Upgrade Morgan Stanley Underweight to Equal Weight $40.50
2016-04-20 Downgrade Standpoint Research Buy to Hold
2016-02-24 Reiterated Rating Brean Capital Hold
2016-02-18 Upgrade Credit Suisse Underperform to Neutral $31.00
2016-01-07 Upgrade Standpoint Research Hold to Buy
2015-10-23 Downgrade Standpoint Research Buy to Hold
2015-10-09 Downgrade Citigroup Inc. Neutral to Sell $31.00
2015-10-07 Upgrade Citigroup Inc. Sell to Neutral
2015-08-26 Upgrade Standpoint Research Hold to Buy $36.00
2015-08-05 Upgrade Sanford C. Bernstein Underperform to Market Perform $35.00
2015-07-22 Reiterated Rating Brean Capital Hold
2015-07-22 Reiterated Rating Credit Suisse Sell $38.00 to $35.00
2015-06-17 Initiated Coverage Goldman Sachs Sell $34.00
2015-06-17 Initiated Coverage Goldman Sachs Group Inc. Sell $34.00
2015-05-14 Upgrade Cross Research Sell to Hold $36.00 to $43.00
2015-04-30 Reiterated Rating Brean Capital Hold
2015-04-29 Upgrade Raymond James Underperform to Market Perform
2015-04-29 Upgrade Raymond James Financial Inc. Underperform to Market Perform
2015-03-12 Lower Price Target Barclays Equal Weight $42.00 to $40.00
2015-03-12 Lower Price Target Barclays PLC Equal Weight $42.00 to $40.00
2015-01-28 Reiterated Rating Citigroup Inc. Sell $42.00 to $37.00
2015-01-28 Lower Price Target Credit Suisse Underperform $41.00 to $38.00
2015-01-28 Reiterated Rating Brean Capital Hold
2015-01-23 Reiterated Rating Raymond James Underweight
2015-01-14 Lower Price Target Barclays Equal Weight $46.00 to $44.00
2014-07-23 Boost Price Target Barclays Equal Weight $42.00 to $51.00
2014-07-23 Downgrade Raymond James Market Perform to Underperform
2014-07-15 Downgrade Sanford C. Bernstein Market Perform to Underperform $40.00
2014-07-09 Downgrade Tigress Financial Strong-Buy to Buy
2014-04-23 Reiterated Rating Citigroup Inc. Sell $36.00
2013-12-23 Upgrade Ned Davis Research Neutral to Buy
2013-12-20 Upgrade Barclays Underweight to Equal Weight $37.00
2013-10-23 Boost Price Target Barclays Underweight $33.00 to $37.00
2013-10-17 Upgrade Tigress Financial Buy to Strong-Buy
2013-07-23 Downgrade Standpoint Research Buy to Hold
2011-04-27 Downgrade Brean Murray Buy to Hold
2010-10-04 Downgrade Barclays Capital Overweight to Equal Weight $47 to $47
2010-09-03 Reiterated Barclays Capital Overweight $50 to $47
2010-06-11 Initiated Standpoint Research Buy $48
2010-02-03 Upgrade Brean Murray Hold to Buy $40
2009-10-21 Upgrade JP Morgan Underweight to Neutral $14.50 to $27.50
2009-10-21 Reiterated Credit Suisse Underperform $13 to $18
2009-05-29 Upgrade Barclays Capital Underweight to Equal Weight
2016-04-28 Reiterated Rating Credit Suisse Hold
2016-04-28 Reiterated Rating Credit Suisse Group AG Hold
2016-04-22 Upgrade Morgan Stanley Underweight to Equal Weight $40.50
2016-04-20 Downgrade Standpoint Research Buy to Hold
2016-02-24 Reiterated Rating Brean Capital Hold

There is presents forecasts of rating agencies and recommendations for investors about this ticker

Funds

In LXK 6 funds of 2213 total. Show all

Fund name Ticker shares
RUSSELL FRANK CO/ 0.17M
ICC CAPITAL MANAGEMENT INC/ 41677
RHJ International SA 28775
VTL Associates, LLC 22077
TradeLink Global Equity LLC 4831
SpiderRock Trading LLC 3500

Major Shareholders

Name Relationship Total Shares Holding stocks
Reeder David VP & CFO 0.27%  (166057) EFII / LXK /
Canning Martin S Executive Vice President 0.25%  (157728) LXK /
ROOKE PAUL A Chairman and CEO 0.25%  (155293) LXK / PLXS /
HARDIS STEPHEN R 0.21%  (127331) ACLS / LXK / PGR /
GAMBLE JOHN W JR EVP & CFO 0.20%  (122768) CONE / EFX / LXK /
Foresti Ronaldo M Vice President 0.16%  (99530) LXK /
BISH REYNOLDS Vice President 0.14%  (89309) GUID / LXK /
Patton Robert J VP, Gen Counsel & Secretary 0.13%  (80486) LXK /
HOLLAND ROBERT JR 0.09%  (57334) CARV / LXK /
Coons Scott T.R. Vice President 0.09%  (54282) LXK /
GOMORY RALPH E 0.08%  (50206) LXK /
Isbell Jeri L VP of Human Resources 0.08%  (47704) ATKR / LXK / SITE /
MONTUPET JEAN PAUL L 0.07%  (46397) AIZ / IHS / LXK / MRKT / PRE / WBC /
FIELDS WILLIAM R 0.07%  (43106) JYNT / LXK /
SEIFERT KATHI P 0.07%  (41654) LLY / LXK / REV / SVU /
COLEMAN J EDWARD 0.06%  (36938) AEE / LXK / UIS /
COHON JARED L 0.06%  (36775) IR / LXK / UIS /
Dunbar Webster Roy 0.05%  (32344) HUM / IGTE / LXK / SITE / TYC /
MAPLES MICHAEL J 0.05%  (31469) LXK / MGAM / QTWO / SONC /
HELTON SANDRA L 0.05%  (31424) CVD / LXK / PFG /
STROMQUIST GARY D Vice President 0.05%  (29382) LXK /