The stock of Ciena Corporation (NYSE:CIEN) increased by $0.11 on Friday to finish at $41.77, up 0.26 percent. The last five days have seen an average of 1,187,460 shares of common stock traded. 3 times new highs were reached in the current year, with a fall of -$9.21. The average number of shares traded over the last 20 days was 1,677,630, while the average volume over the last 50 days totaled 2,175,242.
CIEN stock dropped -4.63% since last month. On 07/14/23, the company’s shares reached a one-month low of $40.58. The stock touched a high of $56.38 on 03/06/23, after rallying from a low of $38.33 in 52 weeks. The price of CIEN stock has declined by -18.07% or -$9.21 this year, reaching a new high 3 times. Still, the stock price is down -25.91% from the 52-week high.
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Insider Transactions
CIEN stock investors should be aware that Ciena Corporation (CIEN) stock had its last reported insider trading activity 13 days ago on Aug 01. On Aug 01, President, CEO SMITH GARY B sold 4,166 shares at $42.11 each. This transaction resulted in the insider making $175,436. On Jul 17, SMITH GARY B sold 4,166 shares at a price of US$41.68. After the transaction, the insider now owns 445,273 shares. SVP, Networking Platforms McFeely Scott had earlier sold 2,000 shares on Jul 17 for $41.20 a share. The transaction was completed for $82,400.
Valuation Metrics
Ciena Corporation (CIEN) has a trailing price-to-earnings (P/E) ratio of 30.94. Beta for the stock is 0.94. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.55, the price-to-book (PB) ratio of 2.15.
Financial Health
For the three months ended April 29, Ciena Corporation’s quick ratio was 2.60, while its current ratio was 3.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 0.53, and the total debt to equity ratio is 0.54. As far as profitability goes, gross margin for the trailing twelve months is 42.60% percent. Ciena Corporation’s EBITDA margin for the year ended April 29 was 10.94%, whereas its operating margin stood at 7.30% for the same period. Based on annual data, it had gross profit of $1.56 billion and revenue of $3.63 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. CIEN’s return on assets (ROA) during the last 12 months has been 3.80%. There was a 5.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 7.30%.
Earnings Surprise
According to Ciena Corporation’s quarterly financial report for the quarter that ended April 29, it had $1.55 billion in total debt versus $150.46 million in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.13 billion, while revenues rose by 16.19% to $1.06 billion. It was predicted that Ciena Corporation’s quarterly earnings would be $0.74, but it ended up being $0.61, beating the consensus by 21.30%. EBITDA was $139.78 million for the quarter. At the end of Ciena Corporation’s most recent quarter ended April 29, its liabilities totaled 2.87 billion, while its total debt was $1.62 billion. Equity owned by shareholders amounts to $149.5 million.
Technical Picture
Here’s a quick look at Ciena Corporation’s (CIEN) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 47.76%, suggesting the stock is Neutral, with a 15.09% historical volatility rate.
The stochastic %K and %D were 18.13% and 18.00% respectively, while the average true range (ATR) was 1.00. Based on the 14-day stochastic reading of 26.67%, the RSI (14) reading is 46.68%. On the 9-day MACD Oscillator, the stock is at -0.10, and the 14-day reading is at -0.44.
Analyst Ratings
Ciena Corporation (NYSE: CIEN) was downgraded by Morgan Stanley to a an Equal-weight rating in its latest research report. The stock was previously rated as a an Overweight.
