Ciena (NYSE:CIEN) Shares Gap Down on Disappointing Earnings

Shares of Ciena Co. (NYSE:CIENGet Rating) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $50.74, but opened at $45.00. Ciena shares last traded at $47.58, with a volume of 45,789 shares.

The communications equipment provider reported $0.33 earnings per share for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.01). The company had revenue of $867.30 million for the quarter, compared to analysts’ expectations of $903.95 million. Ciena had a return on equity of 12.18% and a net margin of 11.15%. The firm’s quarterly revenue was down 12.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.81 EPS.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. Morgan Stanley lowered their target price on Ciena from $65.00 to $60.00 and set an “overweight” rating for the company in a report on Friday. Cowen reduced their price target on Ciena from $82.00 to $71.00 and set an “outperform” rating on the stock in a research report on Friday. Evercore ISI reduced their price target on Ciena to $60.00 in a research report on Friday, June 3rd. UBS Group reduced their price target on Ciena from $66.00 to $51.00 and set a “neutral” rating on the stock in a research report on Friday, June 3rd. Finally, Northland Securities reduced their price target on Ciena from $53.00 to $45.00 and set a “market perform” rating on the stock in a research report on Friday. Three equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. According to data from MarketBeat.com, Ciena has an average rating of “Moderate Buy” and an average price target of $66.37.

Insiders Place Their Bets

In other Ciena news, VP Andrew C. Petrik sold 1,000 shares of the stock in a transaction dated Friday, July 15th. The stock was sold at an average price of $47.17, for a total transaction of $47,170.00. Following the sale, the vice president now directly owns 31,190 shares of the company’s stock, valued at approximately $1,471,232.30. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other Ciena news, CEO Gary B. Smith sold 3,542 shares of the stock in a transaction dated Tuesday, June 7th. The stock was sold at an average price of $48.68, for a total transaction of $172,424.56. Following the sale, the chief executive officer now directly owns 440,382 shares of the company’s stock, valued at approximately $21,437,795.76. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Andrew C. Petrik sold 1,000 shares of the stock in a transaction dated Friday, July 15th. The stock was sold at an average price of $47.17, for a total transaction of $47,170.00. Following the sale, the vice president now directly owns 31,190 shares in the company, valued at $1,471,232.30. The disclosure for this sale can be found here. In the last three months, insiders have sold 33,852 shares of company stock valued at $1,638,258. Company insiders own 0.94% of the company’s stock.

Institutional Investors Weigh In On Ciena

Hedge funds have recently modified their holdings of the company. Counterpoint Mutual Funds LLC purchased a new stake in shares of Ciena during the 1st quarter worth about $67,000. Tobam boosted its stake in shares of Ciena by 919.2% during the 1st quarter. Tobam now owns 2,181 shares of the communications equipment provider’s stock worth $132,000 after acquiring an additional 1,967 shares in the last quarter. Providence Capital Advisors LLC boosted its stake in shares of Ciena by 8.8% during the 1st quarter. Providence Capital Advisors LLC now owns 81,807 shares of the communications equipment provider’s stock worth $4,956,000 after acquiring an additional 6,640 shares in the last quarter. Rosenberg Matthew Hamilton purchased a new position in Ciena in the 1st quarter valued at about $47,000. Finally, Bank of New York Mellon Corp lifted its stake in Ciena by 8.2% in the 1st quarter. Bank of New York Mellon Corp now owns 2,710,012 shares of the communications equipment provider’s stock valued at $164,308,000 after buying an additional 206,112 shares in the last quarter. 90.64% of the stock is owned by hedge funds and other institutional investors.

Ciena Price Performance

The stock has a market capitalization of $6.62 billion, a PE ratio of 16.26, a price-to-earnings-growth ratio of 2.29 and a beta of 0.92. The stock’s 50 day moving average is $50.22 and its two-hundred day moving average is $54.04. The company has a debt-to-equity ratio of 0.38, a quick ratio of 3.10 and a current ratio of 3.72.

Ciena Company Profile

(Get Rating)

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

Recommended Stories

Receive News & Ratings for Ciena Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ciena and related companies with MarketBeat.com's FREE daily email newsletter.