Didier Hirsch is leaving the Logitech board of directors after years of service
Logitech International SA (NASDAQ: LOGI) is a Swiss manufacturer of computer accessories and software. The company has offices across Europe, Asia, Australia and America. Logitech develops and markets parts for PC navigation, video communication and collaboration, music, games and the smart home. This includes products such as keyboards, mice, tablet accessories, webcams, bluetooth speakers, universal remote controls and more. The brands under the Logitech umbrella include Logitech, Logitech G, ASTRO Gaming, Streamlabs, Blue Microphones, Ultimate Ears and Jaybird.
On June 30, Logitech announced that the company’s 2021 annual general meeting would take place on September 8 and that Didier Hirsch would step down from the board at the end of his term in the fall due to the company’s tenure limits. Deborah Thomas will serve as Chair of the Audit Committee. This afternoon LOGI was last up 2.6% to USD 123.48.
Logitech stock is up a whopping 86% year-over-year and 22% year-to-date. However, stocks remain 11% below their record high of $ 140.17 in early June. Logitech stock also has a forward dividend of $ 0.87 and a dividend yield of 0.72%.
Logitech did well in breaking even last year, exceeding expectations in all four of its most recent quarterly earnings reports. For the second quarter of 2020, LOGI beat analyst estimates with a margin of $ 0.30 and reported earnings per share (EPS) of $ 0.64. In the third quarter of 2020, Logitech earnings per share rose to $ 1.87, beating expectations by $ 1.30. For the fourth quarter of 2020, LOGI rose to $ 2.45 per share, beating estimates by a margin of $ 1.43. For the first quarter of 2021, Logitech reported earnings per share of $ 1.45, beating expectations with a margin of $ 0.62.
LOGI is trading at a price to earnings-ratio of 21.83 which is pretty normal in the market today. However, it could be argued that Logitech stock is undervalued given the company’s already high market cap of $ 20 billion and the ever-growing earnings potential in the tech industry. Unfortunately, Logitech stock also has a price-to-earnings ratio of 28.25, which isn’t as attractive as its current value.
Logitech saw significant growth over the past year with 80% revenue growth. LOGI also has an excellent balance sheet with $ 1.75 billion in cash and only $ 34.42 million in debt. Overall, Logitech stock will likely be a decent growth stock for at least the next few years.
Finally, LOGI options are currently available at a bargain price. At 26%, the Schaeffer’s Volatility Index (SVI) for the share is at the lower end of last year’s values. In simpler terms, option players are currently pricing in low volatility expectations.