Infinera Corporation (INFN) Being Snapped Up By Insiders

Infinera Corporation (NASDAQ:INFN) has been downgraded by Morgan Stanley on November 13 which now rates the stock as Equal-Weight compared with Overweight rating suggested in the past. Analysts at Jefferies, shed their negative views on November 09 by lifting it fromUnderperform to Hold. Brokerage firm Needham, looks cautious as they stick to prior recommendation of Strong Buy, in a call on November 07. However, they did change the target price from $14 to $9. B. Riley FBR, reiterated their call for Neutral, on November 07. On the other hand, they had set new target price to $5.50 versus $6.50.

Infinera Corporation (INFN) hit an intraday high Thursday at $4.6. The shares finished at $4.58, after trading as low as $4.24 earlier in the session. It rose 3.85% in recent trade and currently has a stock-market value of $812.58M. Trading activity significantly weakened as the volume at ready counter decreased to 3,292,557 shares versus 4,615,080 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,198,351 shares. The stock is now 11.44% above against its bear-market low of $4.11 on November 30, 2018. It has retreated -170.52% since it’s 52-week high of $12.39 reached in May. Now the market price is down -32.25% on the year and down -27.65% YTD.

INFN’s 50 day simple moving average (SMA 50) price is $5.47 and its 200-day simple moving average (SMA 200) price is $8.66. The company’s stock currently has a total float of 171.26M shares. Its weekly volatility is hovering around 5.81% and felt 6.09% volatility in price over a month. On the upside, the share price will test short term resistance at around $4.71. On a downside, the stock is likely to find some support, which begins at $4.35. The failure to get near-term support could push it to $4.11.

Separately, it has been reported that multiple insider activity took place at Infinera Corporation (INFN). Senior VP, Worldwide Sales Jandro Robert J acquired 40,000 shares for $179,061 in transaction occurred on 2018/11/30. After making this transaction, the Senior VP, Worldwide Sales owns a direct stake of 169,600 shares, worth $820,099, as per the last closing price. On 2018/11/14 Feller Brad, CFO at INFN, purchased 40,000 shares at an average price of $4.5 per share. The new stake is valued at $1,068,038.

CEO, Fallon Thomas J had invested in 50,000 shares for $1,377,075 through a trade on 2018/11/09. Following this activity, the insider holds 231,500 shares worth $6,307,004 as of recent close. Wall Street’s most bullish Infinera Corporation (NASDAQ:INFN) analysts are predicting the share price to blow past $10 per share during the next 12 months. The current median share price forecast by them is $6.5, suggesting that the stock could increase 41.92% in that time frame. The average price target of $6.92 calls for a nearly 51.09% increase in the stock price.

Also, it is trading at rather expensive levels at just over 1x price/book and 1.01x price/sales. Compared to others, Infinera Corporation is in a different league with regards to profitability, having net margins of -19.2%. To put some perspective around this, the industry’s average net margin is 5.34%. INFN’s ROE is -23.1%, which is also considerably worse than the industry’s ROE of 8.18%. It’s also very liquid in the near term, with a current ratio of 3.9. The stock has a debt/capital of 0.37.

Shares of Infinera Corporation (INFN) have dropped -29.2% since the company’s last earnings report. Over the past 12 fiscal quarters, Infinera Corporation (NASDAQ:INFN) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. INFN last reported earnings on November 06, 2018 when it released Sep-18 results that receded expectations. The company raked in -$0.04 per share, -99.52% change on the same period last year. That was worse than consensus for -$0.04. Revenue for the recent quarter stood at $200.41 million, up 4% on last year and below the $209.89 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $317.3 million to $332 million, which should be compared with $214.89 million generated last year. EPS is seen in a range of -$3.00E-01 to -$0.22, against the $0.05 reported a year ago.