Ciena Corporation (CIEN) Rating Lowered to Sell at Zacks Investment Research
Ciena Corporation (NYSE:CIEN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Ciena competes against much larger players in the networking industry which is a major obstacle for the company. Customer concentration has also been a major factor for Ciena. Given the competitive nature of the industry, the loss of any one of its key customers would severely impact results, going forward. Uncertainty related to government business and macroeconomic volatility are other headwinds. However, diversified product portfolio is helping the company to expand its customer base. Ciena’s WaveServer platform is also gaining significant traction in the market. Moreover, strong international growth opportunity particularly in the Asia-Pacific market is positive in our view.”
Several other equities analysts also recently commented on the stock. MKM Partners restated a “buy” rating on shares of Ciena Corporation in a research note on Thursday, August 31st. William Blair reiterated an “outperform” rating on shares of Ciena Corporation in a research note on Thursday, August 31st. ValuEngine upgraded shares of Ciena Corporation from a “hold” rating to a “buy” rating in a research note on Thursday, July 6th. Northland Securities reiterated a “buy” rating and set a $30.00 target price on shares of Ciena Corporation in a research note on Sunday, September 3rd. Finally, UBS AG set a $31.00 target price on shares of Ciena Corporation and gave the stock a “buy” rating in a research note on Wednesday, August 30th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating, twenty have assigned a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $29.53.
Shares of Ciena Corporation (NYSE CIEN) traded up 2.55% during mid-day trading on Tuesday, reaching $21.34. The company’s stock had a trading volume of 1,431,261 shares. The stock has a 50 day moving average of $21.77 and a 200-day moving average of $23.73. Ciena Corporation has a one year low of $18.94 and a one year high of $27.98. The stock has a market cap of $3.04 billion, a P/E ratio of 23.35 and a beta of 1.70.
Ciena Corporation (NYSE:CIEN) last posted its quarterly earnings results on Thursday, August 31st. The communications equipment provider reported $0.51 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.49 by $0.02. The business had revenue of $728.70 million during the quarter, compared to the consensus estimate of $726.81 million. Ciena Corporation had a net margin of 4.99% and a return on equity of 25.53%. The company’s quarterly revenue was up 8.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.42 earnings per share. On average, equities research analysts expect that Ciena Corporation will post $1.74 EPS for the current fiscal year.
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In other news, CEO Gary B. Smith sold 8,000 shares of the company’s stock in a transaction dated Tuesday, October 24th. The shares were sold at an average price of $22.12, for a total value of $176,960.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP James E. Moylan, Jr. sold 2,000 shares of the company’s stock in a transaction dated Thursday, August 10th. The shares were sold at an average price of $24.65, for a total transaction of $49,300.00. The disclosure for this sale can be found here. Insiders sold 88,310 shares of company stock valued at $1,958,204 over the last ninety days. Corporate insiders own 1.45% of the company’s stock.
Several large investors have recently made changes to their positions in CIEN. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in Ciena Corporation by 11.3% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,085 shares of the communications equipment provider’s stock worth $127,000 after purchasing an additional 517 shares in the last quarter. Fortaleza Asset Management Inc. purchased a new position in Ciena Corporation during the second quarter worth about $134,000. Acadian Asset Management LLC purchased a new position in Ciena Corporation during the second quarter worth about $159,000. Howe & Rusling Inc. purchased a new position in Ciena Corporation during the third quarter worth about $158,000. Finally, TNB Financial purchased a new position in Ciena Corporation during the second quarter worth about $200,000.
About Ciena Corporation
Ciena Corporation is a network strategy and technology company, which provides solutions that enable a range of network operators to adopt communication architectures and deliver an array of services, relied upon by enterprise and consumer end users. It provides equipment, software and services that support the transport, switching, aggregation, service delivery and management of voice, video and data traffic on communications networks.
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