Ribbon Communications Inc. (NASDAQ:RBBN) Stock Has Consensus Target Price of $3.30 According to Analysts

Key Points

• Analysts hold a “Moderate Buy” consensus on Ribbon Communications, with four buys, one hold and one sell among six analysts. The average 1-year price target is $3.30, compared with the stock’s reported price of $1.51.
• Institutional ownership is substantial at 70.92%, with BlackRock, Paradigm Capital Management and Connor Clark & Lunn among firms that initiated positions during the second quarter.
• Ribbon’s latest quarter showed mixed results: revenue of $192.34 million exceeded estimates, but adjusted earnings of negative $0.03 per share missed expectations, while year-over-year revenue declined 13%.

Shares of Ribbon Communications Inc. (NASDAQ:RBBN - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the six analysts that are covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell rating, one has given a hold rating and four have issued a buy rating on the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $3.30.

Several analysts have recently weighed in on the company. Weiss Ratings reissued a "sell (d)" rating on shares of Ribbon Communications in a report on Friday, August 7th. CL King set a $3.30 price target on Ribbon Communications in a research note on Wednesday, July 29th. B. Riley Financial upgraded Ribbon Communications from a "neutral" rating to a "buy" rating and set a $3.30 price target on the stock in a research note on Wednesday, July 29th. Finally, Rosenblatt Securities reaffirmed a "neutral" rating and set a $2.20 price target (down from $3.50) on shares of Ribbon Communications in a research report on Tuesday, September 15th.

Hedge Funds Weigh In On Ribbon Communications

A number of hedge funds have recently modified their holdings of RBBN. BlackRock Inc. purchased a new position in Ribbon Communications during the 2nd quarter worth $16,723,000. Paradigm Capital Management Inc. NY acquired a new position in Ribbon Communications in the second quarter valued at $7,105,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in Ribbon Communications in the second quarter valued at $5,179,000. Bank of New York Mellon Corp purchased a new stake in shares of Ribbon Communications in the second quarter valued at about $889,000. Finally, NewEdge Wealth LLC purchased a new stake in shares of Ribbon Communications in the second quarter valued at about $38,000. 70.92% of the stock is currently owned by hedge funds and other institutional investors.

Ribbon Communications Price Performance

Shares of NASDAQ:RBBN opened at $1.51 on Wednesday. The company's fifty day moving average price is $1.91 and its 200 day moving average price is $2.28. Ribbon Communications has a 12 month low of $1.50 and a 12 month high of $4.09. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.31 and a quick ratio of 1.03. The firm has a market capitalization of $270.02 million, a P/E ratio of 18.88 and a beta of 1.37.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The communications equipment provider reported ($0.03) earnings per share for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.02). The company had revenue of $192.34 million during 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%. Ribbon Communications's revenue was down 13.0% on a year-over-year basis. During the same period last year, the firm earned $0.05 earnings per share. As a group, sell-side analysts predict that Ribbon Communications will post -0.05 earnings per share for the current fiscal year.

About Ribbon Communications

Ribbon Communications Inc is a communications technology company that provides software, network infrastructure and security solutions for communications service providers, enterprises and government organizations. Its offerings are designed to support voice, video and data communications across traditional, cloud-based and next-generation networks.

The company's portfolio includes session border controllers, media gateways, communications application software, cloud-native voice and collaboration platforms, network analytics, policy and routing solutions, and security products.

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