Ciena (CIEN) Downgraded to “Hold” at Zacks Investment Research

Ciena (NYSE:CIEN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.

According to Zacks, “Ciena’s revenues are expected to benefit from rising demand for packet-optical transport and switching products, integrated network and service management software. The company is increasingly investing in the data and optical fiber market to serve rising bandwidth demand from network service providers. Increasing usage of service management software in the global communication market remains a key catalyst. The stock has outperformed the industry in the past three months on an average. However, strengthening competition in the networking industry remains a perennial concern. The company faces huge concentration risk as a major portion of the revenues is concentrated among a few, large global communications service providers. Given the competitive nature of the industry, the loss of any one of its key customers would severely impact results. Small vendors also resort to aggressive pricing in order to gain market share, affecting its margin.”

Several other research firms have also weighed in on CIEN. JPMorgan Chase started coverage on Ciena in a research report on Thursday, May 3rd. They set an “overweight” rating and a $36.00 price target on the stock. Rosenblatt Securities dropped their price target on Ciena from $32.00 to $29.00 and set a “buy” rating on the stock in a research report on Thursday, April 26th. Northland Securities restated a “buy” rating and set a $34.00 price target on shares of Ciena in a research report on Monday, March 19th. Citigroup lifted their price target on Ciena from $30.00 to $32.00 and gave the company a “buy” rating in a research report on Friday, March 9th. Finally, Morgan Stanley restated an “equal weight” rating and set a $29.00 price target (up from $25.00) on shares of Ciena in a research report on Friday, March 9th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and twenty-three have assigned a buy rating to the company. Ciena presently has a consensus rating of “Buy” and an average target price of $30.04.

Shares of CIEN stock traded up $0.22 during trading hours on Tuesday, reaching $26.77. The company’s stock had a trading volume of 965,149 shares, compared to its average volume of 3,146,153. The firm has a market cap of $3.82 billion, a P/E ratio of 17.97, a P/E/G ratio of 1.58 and a beta of 1.40. Ciena has a one year low of $19.40 and a one year high of $27.98. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.79 and a current ratio of 2.06.

Ciena (NYSE:CIEN) last issued its quarterly earnings data on Tuesday, March 6th. The communications equipment provider reported $0.15 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.07 by $0.08. The firm had revenue of $646.14 million for the quarter, compared to analyst estimates of $641.77 million. Ciena had a return on equity of 14.10% and a net margin of 27.76%. The business’s quarterly revenue was up 4.0% compared to the same quarter last year. During the same period last year, the company earned $0.17 EPS. equities analysts predict that Ciena will post 1.08 EPS for the current year.

In other news, VP James Frodsham sold 4,000 shares of the business’s stock in a transaction on Monday, February 12th. The stock was sold at an average price of $22.37, for a total value of $89,480.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, SVP James E. Moylan, Jr. sold 2,000 shares of the business’s stock in a transaction on Wednesday, May 2nd. The stock was sold at an average price of $26.05, for a total value of $52,100.00. The disclosure for this sale can be found here. Insiders sold 99,505 shares of company stock worth $2,513,217 over the last three months. Corporate insiders own 1.38% of the company’s stock.

Several hedge funds have recently bought and sold shares of the company. Schwab Charles Investment Management Inc. increased its position in Ciena by 6.4% during the fourth quarter. Schwab Charles Investment Management Inc. now owns 957,269 shares of the communications equipment provider’s stock valued at $20,036,000 after acquiring an additional 57,924 shares during the last quarter. Swarthmore Group Inc. purchased a new stake in Ciena during the fourth quarter valued at $5,396,000. Winslow Evans & Crocker Inc. purchased a new stake in Ciena during the fourth quarter valued at $561,000. First Manhattan Co. increased its position in Ciena by 126.6% during the fourth quarter. First Manhattan Co. now owns 106,900 shares of the communications equipment provider’s stock valued at $2,237,000 after acquiring an additional 59,730 shares during the last quarter. Finally, Peregrine Capital Management LLC increased its position in Ciena by 0.6% during the fourth quarter. Peregrine Capital Management LLC now owns 1,305,791 shares of the communications equipment provider’s stock valued at $27,330,000 after acquiring an additional 8,159 shares during the last quarter.

Ciena Company Profile

Ciena Corporation provides hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of voice, video, and data traffic on communications networks worldwide. The company's Networking Platforms segment offers hardware networking solutions optimized for the convergence of coherent optical transport, optical transport network switching, and packet switching.

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