Ciena Corporation (NYSE:CIEN) finished Friday with an addition of $0.38 to close at $41.49, an upside of 0.92 percent. An average of 1,375,960 shares of common stock have been traded in the last five days. There was a gain of $0.24 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 1,458,340 shares traded, while the 50-day average volume stands at 1,756,192.
CIEN stock has decreased by -4.07% in the last month. The company shares reached their 1-month lowest point of $40.10 on 08/17/23. With the stock rallying to its 52-week high on 03/06/23, shares of the company touched a low of $38.33 and a high of $55.76 in 52 weeks. It has reached a new high 3 times so far this year and lost -18.62% or -$9.49 in price. In spite of this, the price is down -25.59% from the 52-week high.
Insider Transactions
CIEN stock investors should be aware that Ciena Corporation (CIEN) stock had its last reported insider trading activity 11 days ago on Aug 15. In this transaction, the insider spent $174,645. SVP and Chief Strategy Officer, Rothenstein David M, disposed of 3,500 shares at a price of $41.76 on Aug 15. The insider now owns more than $146,160 worth of shares. Prior to that, SVP, Networking Platforms McFeely Scott went on to Sale 2,000 shares at $41.76 each on Aug 15. An amount of $83,520 was transacted.
Valuation Metrics
Ciena Corporation (CIEN) has a trailing price-to-earnings (P/E) ratio of 30.73. The stock’s beta is 0.94. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.53, the price-to-book (PB) ratio at 2.13.
Financial Health
The quick ratio of Ciena Corporation for the three months ended April 29 was 2.60, and the current ratio was 3.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.53 and a total debt to equity ratio of 0.54 for the quarter ending April 29. Ciena Corporation’s EBITDA margin for the year ending April 29 is 10.94%, while its operating margin for the same period stands at 7.30%. Its gross profit as reported stood at $1.56 billion compared to revenue of $3.63 billion.
Earnings Surprise
For the three-month period that ended April 29, Ciena Corporation had $1.55 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $57.65 million in the quarter, while revenues of $76.24 million were grew 32.49%. The analyst consensus anticipated Ciena Corporation’s latest quarter earnings to come in at $0.61 per share, but it turned out to be $0.74, a 21.30% surprise. For the quarter, EBITDA amounted to $139.78 million. Shareholders own equity worth $149.5 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Ciena Corporation (CIEN) price momentum. RSI 9-day as of the close on 25 August was 48.95%, suggesting the stock is Neutral, with historical volatility in this time frame at 26.34%.
As of today, CIEN’s price is $41.48 +0.58% or $0.24 from its 5-day moving average. CIEN is currently trading -0.22% lower than its 20-day SMA and -20.62% lower than its 100-day SMA. However, the stock’s current price level is -6.49% below the SMA50 and -9.29% below the SMA200.
The stochastic %K and %D were 60.28% and 61.73%, respectively, and the average true range (ATR) was 1.00. With the 14-day stochastic at 58.32% and the average true range at 1.03, the RSI (14) stands at 47.72%. The stock has reached 0.19 on the 9-day MACD Oscillator while the 14-day reading was at 0.08.
Analyst Ratings
Morgan Stanley downgraded Ciena Corporation (NYSE: CIEN) to a an Equal-weight rating in its most recent analyst report. Previously, the stock was rated as an Overweight. The consensus rating for Ciena Corporation (CIEN) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell CIEN, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 9 others rate it as a “buy”.
What is CIEN’s price target for the next 12 months?
Analysts predict a range of price targets between $41.00 and $70.00, with a median target of $58.00. Taking a look at these predictions, the average price target given by analysts for Ciena Corporation (CIEN) stock is $56.06.
