Ciena (NYSE:CIEN) Shares Up 9% - Here's Why

Key Points

• Ciena shares rose ~9% to about $251.78 on Tuesday, trading as high as $251.36 on slightly below-average volume.
• Quarterly beat: Ciena reported EPS $0.91 vs. $0.76 expected and revenue $1.35B (up 20.1% YoY), prompting analyst price-target bumps (e.g., Rosenblatt $305, Citi $280) and a consensus "Moderate Buy" with a $237.50 target.
• Insiders have been net sellers recently (43,565 shares sold in the past 90 days), while institutional investors own roughly 92% of the stock.

Ciena Corporation (NYSE:CIEN - Get Free Report) traded up 9% during trading on Tuesday . The company traded as high as $251.36 and last traded at $251.7810. 2,137,292 shares changed hands during trading, a decline of 12% from the average session volume of 2,419,568 shares. The stock had previously closed at $230.90.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on CIEN. B. Riley restated a "neutral" rating on shares of Ciena in a research note on Friday, December 12th. Rosenblatt Securities lifted their target price on Ciena from $175.00 to $305.00 and gave the stock a "buy" rating in a research report on Friday, December 12th. Citigroup boosted their price target on Ciena to $280.00 and gave the company a "buy" rating in a report on Friday, December 12th. Northland Securities set a $190.00 price target on Ciena and gave the company a "market perform" rating in a research report on Friday, December 12th. Finally, Northland Capmk downgraded shares of Ciena from a "strong-buy" rating to a "hold" rating in a report on Friday, December 12th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $237.50.

Ciena Stock Performance

The company has a debt-to-equity ratio of 0.56, a quick ratio of 2.09 and a current ratio of 2.73. The stock has a 50 day moving average of $208.88 and a 200 day moving average of $146.59. The stock has a market capitalization of $35.79 billion, a P/E ratio of 298.97, a P/E/G ratio of 1.41 and a beta of 1.13.

Ciena (NYSE:CIEN - Get Free Report) last announced its quarterly earnings results on Thursday, December 11th. The communications equipment provider reported $0.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.15. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.29 billion. Ciena had a net margin of 2.59% and a return on equity of 8.38%. The company's revenue for the quarter was up 20.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.54 earnings per share. Equities analysts predict that Ciena Corporation will post 1.6 EPS for the current year.

Insider Buying and Selling at Ciena

In related news, CEO Gary B. Smith sold 6,800 shares of the firm's stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $233.46, for a total value of $1,587,528.00. Following the sale, the chief executive officer directly owned 391,437 shares in the company, valued at $91,384,882.02. This trade represents a 1.71% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Brodie Gage sold 550 shares of Ciena stock in a transaction on Monday, December 15th. The shares were sold at an average price of $220.84, for a total value of $121,462.00. Following the sale, the senior vice president directly owned 39,992 shares in the company, valued at $8,831,833.28. The trade was a 1.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 43,565 shares of company stock worth $8,897,954. 0.93% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Amundi grew its position in Ciena by 322.8% in the 1st quarter. Amundi now owns 34,035 shares of the communications equipment provider's stock valued at $1,912,000 after buying an additional 25,986 shares in the last quarter. Advisors Asset Management Inc. raised its position in shares of Ciena by 44.4% during the 1st quarter. Advisors Asset Management Inc. now owns 5,109 shares of the communications equipment provider's stock worth $309,000 after buying an additional 1,572 shares in the last quarter. Jacobs Levy Equity Management Inc. acquired a new stake in shares of Ciena in the 1st quarter worth approximately $395,000. Nissay Asset Management Corp Japan ADV boosted its holdings in shares of Ciena by 12.3% in the first quarter. Nissay Asset Management Corp Japan ADV now owns 38,181 shares of the communications equipment provider's stock valued at $2,307,000 after acquiring an additional 4,186 shares in the last quarter. Finally, Petrus Trust Company LTA bought a new position in shares of Ciena in the first quarter valued at approximately $256,000. 91.99% of the stock is owned by institutional investors and hedge funds.

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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