Juniper Networks, Inc. (JNPR) Starting To Look Cheap?

Juniper Networks, Inc. (NYSE:JNPR) has been upgraded by Nomura, which now rates the stock as Buy versus Neutral prior rating , according to a note issued on September 19. Analysts at Deutsche Bank, shed their negative views on July 30 by lifting it fromHold to Buy. Analysts at Credit Suisse, made their first call about the stock on May 10, recommending it is Underperform. JP Morgan, released new analyst coverage on May 03, calling the stock is Underweight.

Juniper Networks, Inc. (JNPR) hit an intraday high Thursday at $28.425. The shares finished at $28.41, after trading as low as $27.67 earlier in the session. It rose 0.11% in recent trade and currently has a stock-market value of $9.76B. Trading activity significantly weakened as the volume at ready counter decreased to 3,275,066 shares versus 4,269,380 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 4,701,985 shares. The stock is now 20.33% above against its bear-market low of $23.61 on April 18, 2018. It has retreated -8.41% since it’s 52-week high of $30.8 reached in November. Now the market price is up 2.9% on the year and down -0.32% YTD.

JNPR’s 50 day simple moving average (SMA 50) price is $28.73 and its 200-day simple moving average (SMA 200) price is $27.19. The company’s stock currently has a total float of 340.41M shares. Its weekly volatility is hovering around 2.24% and felt 2.38% volatility in price over a month. On the upside, the share price will test short term resistance at around $28.67. On a downside, the stock is likely to find some support, which begins at $27.91. The failure to get near-term support could push it to $27.41.

Separately, it has been reported that multiple insider activity took place at Juniper Networks, Inc. (JNPR). CEO Rahim Rami sold 16,100 shares for $607,933 in transaction occurred on 2018/11/09. After making this transaction, the CEO owns a direct stake of 488,635 shares, worth $17,271,377, as per the last closing price. On 2018/11/08 Stensrud William, Director at JNPR, dumped 10,000 shares at an average price of $30.42 per share. The selling total is valued at $6,205,142.

Chief Development Officer, Athreya Anand had divested 113,039 shares through a trade on 2018/11/02. Following this activity, the insider holds 3,357,258 shares. Wall Street’s most bullish Juniper Networks, Inc. (NYSE:JNPR) analysts are predicting the share price to blow past $34 per share during the next 12 months. The current median share price forecast by them is $29, suggesting that the stock could increase 2.08% in that time frame. The average price target of $28.02 calls for a nearly -1.37% increase in the stock price.

When looking at valuations, Juniper Networks, Inc. (JNPR) has a pricey P/E of 19.63x as compared to industry average of 17.33x. Moreover, it trades for 13.97 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.12x price/book and 2.07x price/sales. Compared to others, Juniper Networks, Inc. is in a different league with regards to profitability, having net margins of 4.8%. To put some perspective around this, the industry’s average net margin is 5.34%. JNPR’s ROE is 5%, 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 2.5. The stock has a debt/capital of 0.46.

Shares of Juniper Networks, Inc. (JNPR) have gained 2.9% since the company’s last earnings report. Over the past 12 fiscal quarters, Juniper Networks, Inc. (NYSE:JNPR) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 2 quarters (16%), whereas at 1 occasion EPS met analyst expectations. JNPR last reported earnings on October 23, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.54 per share, -97.46% change on the same period last year. That was better than consensus for $0.45. Revenue for the recent quarter stood at $1.18 billion, down -6% on last year and below the $1.18 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.21 billion to $1.26 billion, which should be compared with $1.33 billion generated last year. EPS is seen in a range of $0.54 to $0.59, against the $0.62 reported a year ago.