Ciena Corporation (NYSE:CIEN) saw an upside of 1.04% to close Tuesday at $41.61 after adding $0.43 on the day. The 5-day average trading volume is 1,663,620 shares of the company’s common stock. It has gained $42.03 in the past week and touched a new high 2 times within the past 5 days. An average of 1,588,635 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,867,568.
CIEN’s 1-month performance is -1.70% or -$0.79 on its low of $40.10 reached on 08/17/23. The company’s shares have touched a 52-week low of $38.33 and high of $55.76, with the stock’s rally to the 52-week high happening on 03/06/23. YTD, CIEN has lost -18.38% or -$9.37 and has reached a new high 3 times. However, the current price is down -25.38% from the 52-week high price.
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Insider Transactions
CIEN stock investors last saw insider trading activity on Aug 15.SMITH GARY B (President, CEO) most recently sold 4,166 shares at $41.92 per share on Aug 15. This transaction cost the insider $174,645. SVP and Chief Strategy Officer, Rothenstein David M, sold 3,500 shares at a price of $41.76 on Aug 15. Then, on Aug 15, SVP, Networking Platforms McFeely Scott sold 2,000 shares at a price of $41.76 per share. This transaction amounted to $83,520.
Valuation Metrics
CIEN stock has a beta of 0.94. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.53 while the price-to-book (PB) in the most recent quarter is 2.14.
Ciena Corporation’s quick ratio for the period ended April 29 was 2.60, with the current ratio over the same period at 3.70. As well, the company’s long term debt to equity for the quarter ending April 29 was 0.53, while the total debt to equity was 0.54.. In terms of profitability, the gross margin trailing 12 months is 42.60%. The trailing 12-month EBITDA margin is 10.94% while for the period ending April 29, Ciena Corporation’s operating margin was 7.30%. The firm’s gross profit as reported stood at $1.56 billion against revenue of $3.63 billion.
Earnings Surprise
For the quarterly period ending April 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 32.49% to $57.65 million, while revenue of $76.24 million was -32.25% off the previous quarter. Analysts expected CIEN to announce $0.61 per share in earnings in its latest quarter, but it posted $0.74, representing a 21.30% surprise. EBITDA for the quarter stood at more than $139.78 million. CIEN stock balance sheet for the quarter ending April 29 shows that total liabilities totaled 2.87 billion, with total debt at $1.62 billion. Shareholders hold equity totaling $149.5 million.
Let’s look briefly at Ciena Corporation (CIEN) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 22 August was 50.26% to suggest the stock is trending Neutral, with historical volatility in this time period at 23.94%.
The stock’s 5-day moving average is $41.09, reflecting a -1.02% or -$0.43 change from its current price. CIEN is currently trading -3.37% above its 20-day SMA, -18.92% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +0.63% and SMA200 by-10.05%.
Stochastic %K and %D was 49.91% and 41.72% and the average true range (ATR) pointed at 1.02. The RSI (14) points at 48.10%, while the 14-day stochastic is at 63.37% with the period’s ATR at 1.04. The stock’s 9-day MACD Oscillator is pointing at -0.09 and -0.11 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Ciena Corporation (NYSE: CIEN), Morgan Stanley downgraded it to an Equal-weight rating. They previously had an Overweight rating on the stock. Analysts offering their rating for CIEN stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate CIEN as a “sell,”, while 5 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 9 have offered a “buy” rating.
What is CIEN’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $41.00 and a high of $70.00, with their median price target at $58.00. Looking at these predictions, the average price target given by analysts is for Ciena Corporation (CIEN) stock is $56.06.
