Rosenblatt Securities Downgrades Ribbon Communications (NASDAQ:RBBN) to Hold

Key Points

• Rosenblatt Securities downgraded Ribbon Communications from “strong buy” to “hold.” Despite mixed analyst opinions, the stock maintains a consensus “Moderate Buy” rating with a $3.30 price target.
• Ribbon shares opened at $1.83, down 8.5%, near their 52-week low of $1.80 and below both their 50-day and 200-day moving averages.
• The company reported a quarterly loss of $0.03 per share, missing estimates by $0.02, while revenue of $192.34 million exceeded expectations but fell 13% year over year.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) was downgraded by equities researchers at Rosenblatt Securities from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday, Zacks reports.

RBBN has been the subject of a number of other research reports. Weiss Ratings restated a "sell (d)" rating on shares of Ribbon Communications in a report on Friday, August 7th. CL King set a $3.30 target price on shares of Ribbon Communications in a research note on Wednesday, July 29th. Finally, B. Riley Financial raised shares of Ribbon Communications from a "neutral" rating to a "buy" rating and set a $3.30 target price for the company in a research report on Wednesday, July 29th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Ribbon Communications currently has an average rating of "Moderate Buy" and a consensus price target of $3.30.

Ribbon Communications Stock Down 8.5%

RBBN stock opened at $1.83 on Monday. The stock has a market cap of $327.24 million, a P/E ratio of 22.88 and a beta of 1.36. The company has a current ratio of 1.31, a quick ratio of 1.03 and a debt-to-equity ratio of 0.82. The stock's fifty day simple moving average is $2.08 and its two-hundred day simple moving average is $2.35. Ribbon Communications has a 1-year low of $1.80 and a 1-year high of $4.09.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) last announced its earnings results on Tuesday, July 28th. The communications equipment provider reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.02). The business had revenue of $192.34 million for the quarter, compared to analysts' expectations of $189.99 million. Ribbon Communications had a net margin of 1.96% and a return on equity of 19.91%. The company's revenue for the quarter was down 13.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.05 earnings per share. Analysts expect that Ribbon Communications will post -0.05 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. WINTON GROUP Ltd increased its holdings in Ribbon Communications by 198.1% in the 2nd quarter. WINTON GROUP Ltd now owns 149,404 shares of the communications equipment provider's stock worth $350,000 after acquiring an additional 99,289 shares during the last quarter. Squarepoint Ops LLC purchased a new stake in Ribbon Communications during the second quarter valued at about $448,000. AXQ Capital LP bought a new position in Ribbon Communications during the second quarter worth about $25,000. Hsbc Holdings PLC bought a new position in Ribbon Communications during the second quarter worth about $62,000. Finally, Empowered Funds LLC purchased a new position in shares of Ribbon Communications in the second quarter worth about $221,000. Institutional investors own 70.92% of the company's stock.

About Ribbon Communications

Ribbon Communications Inc NASDAQ: RBBN provides communications technology for telecommunications service providers, enterprises and government organizations. The company develops software, hardware and related services that help customers build, operate and secure voice, video and data networks across cloud, IP and optical environments.

Its portfolio includes session border controllers, communications platforms, voice and unified communications solutions, network transformation software, signaling and routing products, and cybersecurity capabilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.