Ciena (NYSE:CIEN) Shares Down 6% - Time to Sell?

Key Points

• Ciena shares fell 6% to about $387.52, trading below both their 50-day and 200-day moving averages. The stock carries a high valuation, with a price-to-earnings ratio of 129.17.
• Despite the decline, analyst sentiment remains positive: Ciena has a consensus “Moderate Buy” rating from 20 analysts and an average price target of $530.56.
• Ciena recently exceeded quarterly expectations, reporting $1.64 in EPS and $1.57 billion in revenue, with revenue up 39.5% year over year. However, insiders sold 21,627 shares worth approximately $10.5 million over the past 90 days.

Shares of Ciena Corporation (NYSE:CIEN - Get Free Report) were down 6% on Monday . The stock traded as low as $387.28 and last traded at $387.52. Approximately 2,014,984 shares changed hands during mid-day trading, a decline of 32% from the average daily volume of 2,960,027 shares. The stock had previously closed at $412.39.

Analyst Ratings Changes

A number of equities analysts have recently commented on CIEN shares. Bank of America lifted their target price on shares of Ciena from $550.00 to $660.00 and gave the company a "buy" rating in a report on Tuesday, May 26th. Morgan Stanley lifted their price objective on shares of Ciena from $405.00 to $490.00 and gave the company an "equal weight" rating in a research note on Friday, June 5th. Stifel Nicolaus set a $615.00 price objective on shares of Ciena in a research note on Friday, May 29th. Zacks Research cut shares of Ciena from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. Finally, TD Cowen increased their target price on shares of Ciena from $425.00 to $675.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Thirteen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Ciena currently has a consensus rating of "Moderate Buy" and an average price target of $530.56.

Ciena Stock Down 6.0%

The company has a quick ratio of 2.11, a current ratio of 2.73 and a debt-to-equity ratio of 0.53. The stock has a market capitalization of $54.85 billion, a PE ratio of 129.17 and a beta of 1.30. The firm's fifty day moving average is $439.69 and its 200-day moving average is $420.50.

Ciena (NYSE:CIEN - Get Free Report) last released its earnings results on Thursday, June 4th. The communications equipment provider reported $1.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.46 by $0.18. Ciena had a return on equity of 18.15% and a net margin of 7.87%.The company had revenue of $1.57 billion for the quarter, compared to analysts' expectations of $1.50 billion. During the same quarter in the previous year, the firm posted $0.42 EPS. The firm's quarterly revenue was up 39.5% on a year-over-year basis. On average, equities research analysts predict that Ciena Corporation will post 5.4 earnings per share for the current year.

Insider Activity at Ciena

In other news, CEO Gary B. Smith sold 2,952 shares of the company's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $379.81, for a total transaction of $1,121,199.12. Following the transaction, the chief executive officer directly owned 248,982 shares of the company's stock, valued at $94,565,853.42. This represents a 1.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jason Phipps sold 2,629 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $466.20, for a total transaction of $1,225,639.80. Following the completion of the sale, the senior vice president owned 62,382 shares of the company's stock, valued at $29,082,488.40. This trade represents a 4.04% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 21,627 shares of company stock worth $10,508,776. 0.58% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ciena

Institutional investors have recently modified their holdings of the company. Transamerica Financial Advisors LLC raised its holdings in Ciena by 71.0% during the fourth quarter. Transamerica Financial Advisors LLC now owns 106 shares of the communications equipment provider's stock worth $25,000 after purchasing an additional 44 shares during the last quarter. Asset Dedication LLC raised its stake in shares of Ciena by 2,100.0% during the 1st quarter. Asset Dedication LLC now owns 88 shares of the communications equipment provider's stock worth $34,000 after buying an additional 84 shares during the last quarter. Carolina Wealth Advisors LLC raised its stake in shares of Ciena by 57.8% during the 2nd quarter. Carolina Wealth Advisors LLC now owns 71 shares of the communications equipment provider's stock worth $35,000 after buying an additional 26 shares during the last quarter. Truvestments Capital LLC boosted its position in shares of Ciena by 45.3% in the 4th quarter. Truvestments Capital LLC now owns 154 shares of the communications equipment provider's stock worth $36,000 after buying an additional 48 shares in the last quarter. Finally, Bogart Wealth LLC grew its stake in Ciena by 635.7% in the 1st quarter. Bogart Wealth LLC now owns 103 shares of the communications equipment provider's stock valued at $40,000 after acquiring an additional 89 shares during the last quarter. Hedge funds and other institutional investors own 91.99% of the company's stock.

About Ciena

Ciena Corporation NYSE: CIEN is a global supplier of telecommunications networking equipment, software and services. The company develops high-capacity optical transport systems and packet-optical platforms that enable service providers, cloud operators and large enterprises to build, manage and scale their networks. Ciena's product portfolio includes coherent optical solutions, packet networking platforms and a suite of network automation software designed to optimize bandwidth, reduce latency and simplify network operations.

In addition to hardware offerings, Ciena provides professional services and support, including network design, implementation and ongoing maintenance.

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