Ribbon Communications (NASDAQ:RBBN) Cut to Neutral at B. Riley Securities

B. Riley Securities downgraded shares of Ribbon Communications (NASDAQ:RBBN) from a buy rating to a neutral rating in a research note published on Friday morning, MarketBeat Ratings reports. The brokerage currently has $2.90 price target on the communications equipment provider’s stock.

Other analysts have also recently issued reports about the company. Northland Securities set a $4.00 price target on Ribbon Communications in a report on Friday. Citigroup reiterated an “outperform” rating on shares of Ribbon Communications in a research report on Friday. Rosenblatt Securities lowered their price target on shares of Ribbon Communications from $6.00 to $4.00 and set a “buy” rating on the stock in a research report on Friday. Wall Street Zen cut shares of Ribbon Communications from a “buy” rating to a “hold” rating in a research note on Saturday, October 25th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Ribbon Communications in a research report on Thursday, January 22nd. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $3.97.

Ribbon Communications Stock Performance

Shares of RBBN stock opened at $1.96 on Friday. Ribbon Communications has a 52 week low of $1.80 and a 52 week high of $5.38. The company has a market capitalization of $346.14 million, a price-to-earnings ratio of 8.91 and a beta of 1.07. The company has a 50-day simple moving average of $2.82 and a 200 day simple moving average of $3.36. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.16 and a current ratio of 1.43.

Ribbon Communications (NASDAQ:RBBN) last issued its quarterly earnings data on Thursday, February 5th. The communications equipment provider reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.48. Ribbon Communications had a net margin of 4.69% and a return on equity of 27.48%. The firm had revenue of $227.32 million during the quarter, compared to the consensus estimate of $241.35 million. During the same period last year, the business posted $0.16 earnings per share. The business’s revenue for the quarter was down 9.6% compared to the same quarter last year. On average, sell-side analysts predict that Ribbon Communications will post 0.18 earnings per share for the current year.

Institutional Trading of Ribbon Communications

Large investors have recently made changes to their positions in the company. Royce & Associates LP increased its stake in Ribbon Communications by 17.2% in the third quarter. Royce & Associates LP now owns 4,305,470 shares of the communications equipment provider’s stock valued at $16,361,000 after acquiring an additional 633,035 shares during the last quarter. Cinctive Capital Management LP acquired a new stake in shares of Ribbon Communications in the 3rd quarter valued at $1,991,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Ribbon Communications by 99.6% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 964,446 shares of the communications equipment provider’s stock valued at $3,665,000 after purchasing an additional 481,276 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its stake in shares of Ribbon Communications by 24.1% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,476,053 shares of the communications equipment provider’s stock valued at $5,919,000 after purchasing an additional 286,803 shares during the last quarter. Finally, Lazard Asset Management LLC acquired a new position in shares of Ribbon Communications during the 3rd quarter worth $794,000. Institutional investors and hedge funds own 70.92% of the company’s stock.

Key Headlines Impacting Ribbon Communications

Here are the key news stories impacting Ribbon Communications this week:

• Positive Sentiment: Q4 EPS materially beat expectations — Ribbon reported $0.59 EPS vs. a consensus ~$0.11, driven by margin items and stronger profitability metrics. This is a near-term positive for earnings credibility. Article Title
• Positive Sentiment: Company highlights: PR release cites strong cash flow, bookings from expanding voice-modernization customers and >25% growth with U.S. Tier 1 service providers; Ribbon says it’s targeting expansion into AI and defense markets — potential longer-term growth drivers. Article Title
• Neutral Sentiment: Earnings call/transcripts and slide deck are available for deeper detail on project timing, backlog and mix — useful for investors wanting management’s commentary on the weak revenue cadence. Article Title
• Neutral Sentiment: Outlook nuance: Seeking Alpha and company materials show Ribbon projecting up to ~$875M for 2026 revenue “amid a cautious outlook” — management is signaling opportunity (voice modernization) but also caution on timing. Article Title
• Negative Sentiment: Revenue miss and weak guidance drove the selloff — Q4 revenue was $227.3M (below estimates) and management set 1Q revenue guidance of $160–170M vs. a ~$196M consensus and FY revenue guidance $850–865M vs. ~$905M expected. That guidance shortfall is the primary negative catalyst. Article Title
• Negative Sentiment: Analyst reactions: B. Riley downgraded RBBN from Buy to Neutral (PT $2.90) and several firms (Rosenblatt, Citizens/JMP) trimmed price targets to $4 (some kept Buy/Outperform). The mix of downgrades and PT cuts reflects investor concern about near-term revenue visibility. Article Title Article Title

Ribbon Communications Company Profile

Ribbon Communications Inc is a global provider of real-time communications software and network solutions for service providers and enterprises. The company’s offerings address the full life cycle of voice, video and data transmission across fixed, mobile and cloud environments. Ribbon’s technology portfolio is designed to enable secure, intelligent and interoperable communications in applications such as unified communications, contact centers, wholesale VoIP interconnect and next-generation 5G networks.

Ribbon’s product suite includes session border controllers (SBCs), which secure and interwork IP voice and multimedia sessions; Diameter signaling controllers for 4G/5G policy and charging control; network edge virtualization platforms; and analytics engines for service assurance and fraud management.