Ciena (NYSE:CIEN) Sets New 12-Month High - Still a Buy?

Key Points

• Ciena's stock price reached a new 52-week high of $177.28 during trading, closing at $175.47, reflecting strong investor interest.
• Analysts have shown positive sentiment towards Ciena, with several upgrades resulting in a target price increase, and a current average rating of Moderate Buy.
• Insider trading activity indicates that executives have sold a significant number of shares recently, with a reported total of $5.9 million in sold shares over the last ninety days.

Ciena Corporation (NYSE:CIEN - Get Free Report) shares reached a new 52-week high during trading on Monday . The stock traded as high as $177.28 and last traded at $175.47, with a volume of 181180 shares trading hands. The stock had previously closed at $170.95.

Analyst Ratings Changes

CIEN has been the subject of several research analyst reports. Zacks Research upgraded shares of Ciena from a "hold" rating to a "strong-buy" rating in a report on Tuesday, September 9th. Stifel Nicolaus boosted their price target on shares of Ciena from $120.00 to $152.00 and gave the stock a "buy" rating in a report on Tuesday, September 23rd. Bank of America boosted their price target on shares of Ciena from $135.00 to $155.00 and gave the company a "buy" rating in a research report on Wednesday, September 17th. Barclays lifted their target price on shares of Ciena from $102.00 to $138.00 and gave the company an "overweight" rating in a research report on Friday, September 5th. Finally, Wall Street Zen raised Ciena from a "hold" rating to a "buy" rating in a research note on Friday, September 5th. Three research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $137.53.

Ciena Stock Up 0.9%

The firm has a market cap of $24.32 billion, a P/E ratio of 177.62, a price-to-earnings-growth ratio of 2.37 and a beta of 1.15. The company's 50-day simple moving average is $125.66 and its 200 day simple moving average is $93.50. The company has a debt-to-equity ratio of 0.55, a current ratio of 3.28 and a quick ratio of 2.52.

Ciena (NYSE:CIEN - Get Free Report) last announced its quarterly earnings results on Thursday, April 6th. The communications equipment provider reported $0.47 EPS for the quarter. Ciena had a net margin of 3.10% and a return on equity of 6.62%. The firm had revenue of $844.44 million during the quarter. Research analysts anticipate that Ciena Corporation will post 1.6 EPS for the current fiscal year.

Insider Buying and Selling at Ciena

In related news, SVP Joseph Cumello sold 1,863 shares of the company's stock in a transaction on Friday, September 26th. The stock was sold at an average price of $141.14, for a total value of $262,943.82. Following the transaction, the senior vice president directly owned 43,531 shares of the company's stock, valued at $6,143,965.34. This represents a 4.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Brodie Gage sold 350 shares of the business's stock in a transaction dated Wednesday, October 15th. The shares were sold at an average price of $169.36, for a total value of $59,276.00. Following the completion of the transaction, the senior vice president directly owned 40,653 shares of the company's stock, valued at approximately $6,884,992.08. This trade represents a 0.85% decrease in their position. The disclosure for this sale can be found here. Insiders sold 45,374 shares of company stock valued at $5,936,444 in the last ninety days. 0.93% of the stock is owned by insiders.

Institutional Trading of Ciena

A number of hedge funds have recently added to or reduced their stakes in the company. Bessemer Group Inc. boosted its stake in shares of Ciena by 50.0% in the first quarter. Bessemer Group Inc. now owns 534 shares of the communications equipment provider's stock worth $32,000 after acquiring an additional 178 shares during the last quarter. Bayforest Capital Ltd grew its position in Ciena by 34.7% in the first quarter. Bayforest Capital Ltd now owns 636 shares of the communications equipment provider's stock worth $38,000 after acquiring an additional 164 shares during the period. Allworth Financial LP raised its position in Ciena by 107.5% in the second quarter. Allworth Financial LP now owns 718 shares of the communications equipment provider's stock valued at $58,000 after purchasing an additional 372 shares during the period. National Bank of Canada FI lifted its stake in shares of Ciena by 15.4% in the 1st quarter. National Bank of Canada FI now owns 1,147 shares of the communications equipment provider's stock valued at $69,000 after purchasing an additional 153 shares during the last quarter. Finally, Quarry LP grew its holdings in shares of Ciena by 65.6% during the 1st quarter. Quarry LP now owns 1,593 shares of the communications equipment provider's stock worth $96,000 after purchasing an additional 631 shares during the period. 91.99% of the stock is owned by hedge funds and other institutional investors.

About Ciena

Ciena Corporation provides hardware and software services for delivery of video, data, and voice traffic metro, aggregation, and access communications network worldwide. The company's Networking Platforms segment offers convergence of coherent optical transport, open optical networking, optical transport network switching, IP routing, and switching services.

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