Brocade Communications Systems, Inc. (NASDAQ:BRCD) Downgraded to “Hold” at Zacks Investment Research
Brocade Communications Systems, Inc. (NASDAQ:BRCD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Brocade Communications Systems, Inc. delivers industry-leading platforms, solutions, and services for intelligently connecting, managing, and optimizing IT resources in shared storage environments. The world’s premier systems, server, and storage providers offer the Brocade SilkWorm family of Storage Area Network connectivity platforms as the foundation for shared storage in organizations of all sizes. In addition, the Brocade Tapestry family of IT infrastructure solutions extends the ability to proactively manage and optimize application and information resources across the enterprise. Using Brocade solutions, organizations are better positioned to reduce cost, manage complexity, and satisfy business compliance requirements through optimized use and management of their IT resources. “
Several other brokerages also recently issued reports on BRCD. Wunderlich reissued a “sell” rating on shares of Brocade Communications Systems in a research note on Thursday, March 30th. BidaskClub raised Brocade Communications Systems from a “sell” rating to a “hold” rating in a research note on Thursday, June 29th. Royal Bank Of Canada reissued a “hold” rating and issued a $12.75 price objective on shares of Brocade Communications Systems in a research note on Friday, June 9th. Finally, Stifel Nicolaus reissued a “hold” rating and issued a $12.75 price objective on shares of Brocade Communications Systems in a research note on Friday, May 26th. Two equities research analysts have rated the stock with a sell rating and fifteen have assigned a hold rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $11.13.
Brocade Communications Systems (NASDAQ BRCD) traded up 0.08% during trading on Tuesday, reaching $12.64. 5,685,261 shares of the company’s stock were exchanged. The stock has a 50-day moving average price of $12.65 and a 200 day moving average price of $12.53. Brocade Communications Systems has a 52 week low of $8.64 and a 52 week high of $12.72. The firm has a market capitalization of $5.18 billion, a price-to-earnings ratio of 86.58 and a beta of 0.67.
Brocade Communications Systems (NASDAQ:BRCD) last announced its quarterly earnings data on Thursday, May 25th. The technology company reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.09. The firm had revenue of $552.80 million during the quarter, compared to the consensus estimate of $602.92 million. Brocade Communications Systems had a return on equity of 8.49% and a net margin of 2.54%. The business’s revenue for the quarter was up 5.6% on a year-over-year basis. During the same period in the prior year, the business earned $0.22 EPS. Equities research analysts forecast that Brocade Communications Systems will post $0.59 earnings per share for the current fiscal year.
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In other news, SVP Ellen Odonnell sold 7,811 shares of the stock in a transaction dated Wednesday, June 14th. The stock was sold at an average price of $12.64, for a total transaction of $98,731.04. Following the transaction, the senior vice president now owns 19,037 shares of the company’s stock, valued at approximately $240,627.68. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, SVP Ken Cheng sold 200,000 shares of the stock in a transaction dated Friday, June 9th. The shares were sold at an average price of $12.62, for a total value of $2,524,000.00. Following the transaction, the senior vice president now directly owns 252,338 shares in the company, valued at approximately $3,184,505.56. The disclosure for this sale can be found here. In the last three months, insiders have sold 276,299 shares of company stock worth $3,487,050. 1.77% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. ING Groep NV bought a new position in shares of Brocade Communications Systems during the second quarter worth approximately $629,000. Russell Investments Group Ltd. raised its position in shares of Brocade Communications Systems by 67.9% in the second quarter. Russell Investments Group Ltd. now owns 284,542 shares of the technology company’s stock worth $3,592,000 after buying an additional 115,071 shares in the last quarter. First Citizens Bank & Trust Co. raised its position in shares of Brocade Communications Systems by 31.3% in the second quarter. First Citizens Bank & Trust Co. now owns 36,231 shares of the technology company’s stock worth $457,000 after buying an additional 8,638 shares in the last quarter. Longfellow Investment Management Co. LLC raised its position in shares of Brocade Communications Systems by 30.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 1,289,200 shares of the technology company’s stock worth $16,257,000 after buying an additional 300,000 shares in the last quarter. Finally, Quantitative Systematic Strategies LLC bought a new position in shares of Brocade Communications Systems during the second quarter worth approximately $177,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.
Brocade Communications Systems Company Profile
Brocade Communications Systems, Inc (Brocade) is a supplier of networking hardware, software and services, including storage area networking (SAN) solutions and Internet protocol (IP) networking solutions for businesses and organizations of various types and sizes. The Company operates through three segments: SAN Products, IP Networking Products and Global Services.
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