SYMANTEC CORP. $19.95 - Nasdaq symbol SYMC

SYMANTEC CORP. $19.95 (Nasdaq symbol SYMC; TSINetwork Rating: Average)(650-527-8000;www.symantec.com; Shares outstanding: 684.2 million; Marketcap: $13.5 billion; Dividend yield: 3.0%) continues to strengthen its fast-growing cyber security business. It’salso selling off its Veritas Technologies division.

Corporations are spending more on cyber security following high-profile attacks on Sony, Target and Ashley Madison. Symantec is taking advantage of thisby hiring more programmers. It has also cancelled unprofitable contracts and simplified its product lines.

These moves cut the company’s profits by 12.1% in its fiscal 2016 first quarter, which ended July 3, 2015,to $275 million, or $0.40 a share, from $313 million,or $0.45. Sales fell 13.6%, to $1.50 billion from $1.74billion.

Sale boosts buyback program

In 2014, the company said it would split into two publicly traded firms: Symantec (security software,antivirus and services) and Veritas Technologies (products for data backup and recovery). However, the company has decided instead to sell Veritas to a group of private investors for $8.0 billion. It expects to close the deal on January 1, 2016.

The cash will let Symantec add $1.5 billion to its share repurchase program, bringing the total to $2.6billion, or 19% of its $13.5-billion market cap (the value of all outstanding shares).

The company now expects to earn $1.80 to $1.90 a share for all of fiscal 2016, and the stock trades at an attractive 10.8 times the midpoint of that range. It yields 3.0%.

Symantec is a buy.

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