Ciena Corporation (NYSE:CIEN) Stock Has Average Target Price of $485.93

Key Points

• Analysts are broadly positive on Ciena: Of 22 analysts covering the stock, 15 rate it a buy, one a strong buy and six a hold; the average 12-month price target is $485.93.
• Recent quarterly results beat expectations: Ciena reported EPS of $2.11 versus estimates of $1.73 and revenue of $1.67 billion, up 37% year over year.
• Some analysts raised their ratings and price targets, including Evercore, which upgraded Ciena to outperform and increased its target to $550; insiders have also sold shares recently.

Ciena Corporation (NYSE:CIEN - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twenty-two analysts that are presently covering the stock, MarketBeat.com reports. Six research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among brokers that have covered the stock in the last year is $485.93.

Several analysts have weighed in on CIEN shares. Morgan Stanley reissued a "positive" rating on shares of Ciena in a report on Thursday, September 17th. TD Cowen restated a "buy" rating on shares of Ciena in a research report on Thursday, September 17th. Needham & Company LLC reaffirmed a "buy" rating and issued a $520.00 target price on shares of Ciena in a research note on Thursday, September 17th. Evercore upgraded shares of Ciena from an "in-line" rating to an "outperform" rating and lifted their price target for the stock from $375.00 to $550.00 in a research report on Monday, September 21st. Finally, Zacks Research upgraded shares of Ciena from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 9th.

Ciena Stock Up 1.2%

NYSE CIEN opened at $272.59 on Wednesday. The firm has a market cap of $38.66 billion, a PE ratio of 60.85, a price-to-earnings-growth ratio of 2.16 and a beta of 1.33. Ciena has a one year low of $168.22 and a one year high of $637.51. The stock's 50 day simple moving average is $346.30 and its 200 day simple moving average is $402.93. The company has a debt-to-equity ratio of 1.06, a current ratio of 3.80 and a quick ratio of 3.17.

Ciena (NYSE:CIEN - Get Free Report) last issued its quarterly earnings data on Thursday, September 3rd. The communications equipment provider reported $2.11 EPS for the quarter, topping analysts' consensus estimates of $1.73 by $0.38. Ciena had a net margin of 10.87% and a return on equity of 25.33%. The firm had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.64 billion. During the same quarter in the prior year, the firm earned $0.35 EPS. The company's revenue was up 37.0% on a year-over-year basis. As a group, sell-side analysts forecast that Ciena will post 6.00 earnings per share for the current fiscal year.

Insider Activity

In other Ciena news, EVP Jason Phipps sold 2,629 shares of the stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $355.19, for a total value of $933,794.51. Following the completion of the sale, the executive vice president directly owned 57,388 shares in the company, valued at $20,383,643.72. This represents a 4.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Thomas Nevens sold 3,738 shares of the firm's stock in a transaction dated Wednesday, September 23rd. The stock was sold at an average price of $359.04, for a total value of $1,342,091.52. Following the sale, the director directly owned 6,289 shares in the company, valued at approximately $2,258,002.56. This represents a 37.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 36,014 shares of company stock valued at $13,216,540. Insiders own 0.58% of the company's stock.

Hedge Funds Weigh In On Ciena

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CIEN. Carolina Wealth Advisors LLC boosted 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. Triumph Capital Management increased its position in shares of Ciena by 15.2% in the second quarter. Triumph Capital Management now owns 205 shares of the communications equipment provider's stock valued at $101,000 after acquiring an additional 27 shares during the last quarter. Syon Capital LLC increased its position in shares of Ciena by 3.1% in the second quarter. Syon Capital LLC now owns 910 shares of the communications equipment provider's stock valued at $446,000 after acquiring an additional 27 shares during the last quarter. Modera Wealth Management LLC raised its holdings in Ciena by 1.8% during the first quarter. Modera Wealth Management LLC now owns 1,685 shares of the communications equipment provider's stock worth $654,000 after acquiring an additional 29 shares in the last quarter. Finally, Parkside Financial Bank & Trust raised its holdings in Ciena by 4.6% during the second quarter. Parkside Financial Bank & Trust now owns 844 shares of the communications equipment provider's stock worth $414,000 after acquiring an additional 37 shares in the last quarter. 91.99% of the stock is owned by institutional investors and hedge funds.

About Ciena

Ciena is a communications networking company that develops equipment, software and services used to build and manage telecommunications networks. Its offerings support the movement of data across fiber-optic, subsea and other network infrastructure. The company's products include optical transport systems, routing and switching equipment, and software for network automation and management. Ciena also provides consulting, implementation and support services to help customers plan, deploy and operate their networks.

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