Ciena Corporation (NYSE:CIEN) is rated as Buy by analysts at Dougherty & Company. The firm was pushed by the stock performance to change their PT view from $36 to $40 on December 14. Analysts at B. Riley FBR, maintained the company shares at Buy on December 14 but switched target price from $36 to $42.50. The stock lost favor of Loop Capital analysts who expressed their lack of confidence in it using a downgrade from Buy to Hold on December 14.
Ciena Corporation (CIEN) hit an intraday high Thursday at $37.15. The shares finished at $36.9, after trading as low as $36.025 earlier in the session. It rose 0.93% in recent trade and currently has a stock-market value of $5.67B. Trading activity significantly weakened as the volume at ready counter decreased to 2,722,312 shares versus 4,027,505 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,122,643 shares. The stock is now 78.17% above against its bear-market low of $20.71 on February 06, 2018. It has retreated -0.76% since it’s 52-week high of $37.18 reached in January. Now the market price is up 68.26% on the year and up 8.82% YTD.
CIEN’s 50 day simple moving average (SMA 50) price is $32.93 and its 200-day simple moving average (SMA 200) price is $28.56. The company’s stock currently has a total float of 153.67M shares. Its weekly volatility is hovering around 3.46% and felt 3.88% volatility in price over a month. On the upside, the share price will test short term resistance at around $37.36. On a downside, the stock is likely to find some support, which begins at $36.23. The failure to get near-term support could push it to $35.57.
Separately, it has been reported that multiple insider activity took place at Ciena Corporation (CIEN). PRESIDENT, CEO Smith Gary B sold 9,600 shares for $627,214 in transaction occurred on 2018/12/28. After making this transaction, the PRESIDENT, CEO owns a direct stake of 310,368 shares, worth $23,144,197, as per the last closing price. On 2018/12/24 Phipps Jason, SVP Global Sales and Marketing at CIEN, dumped 1,585 shares at an average price of $31.43 per share. The selling total is valued at $2,788,127.
SVP, Software and Services, Hamilton Rick had divested 4,602 shares for $81,438 through a trade on 2018/12/21. Following this activity, the insider holds 149,473 shares worth $3,005,062 as of recent close. Wall Street’s most bullish Ciena Corporation (NYSE:CIEN) analysts are predicting the share price to blow past $45 per share during the next 12 months. The current median share price forecast by them is $40, suggesting that the stock could increase 8.4% in that time frame. The average price target of $38.39 calls for a nearly 4.04% increase in the stock price.
When looking at valuations, Ciena Corporation (CIEN) has a pricey P/E of 43.72x as compared to industry average of 12.45x. Moreover, it trades for 16.57 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.75x price/book and 1.83x price/sales. Compared to others, Ciena Corporation is in a different league with regards to profitability, having net margins of -11.1%. To put some perspective around this, the industry’s average net margin is -1.96%. CIEN’s ROE is -19.1%, which is also considerably worse than the industry’s ROE of 2.06%. It’s also very liquid in the near term, with a current ratio of 2.2. The stock has a debt/capital of 0.4.
Shares of Ciena Corporation (CIEN) have gained 13.8% since the company’s Jan-19 earnings report. Over the past 12 fiscal quarters, Ciena Corporation (NYSE:CIEN) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 4 quarters (33%), whereas at 1 occasion EPS met analyst expectations. CIEN last reported earnings on December 13, 2018 when it released Oct-18 results that exceeded expectations. The company raked in $0.53 per share, -95.04% change on the same period last year. That was better than consensus for $0.48. Revenue for the recent quarter stood at $899.36 million, up 21% on last year and above the $862.37 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $747.1 million to $771.79 million, which should be compared with $688.27 million generated last year. EPS is seen in a range of $0.23 to $0.34, against the $0.23 reported a year ago.