Ribbon Communications Inc. (NASDAQ:RBBN) Stock Now Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Analysts collectively rate Ribbon Communications “Moderate Buy”: Four of six covering firms recommend buying, while one rates it hold and one sell; the average 12-month price target is $3.20.
• Quarterly results were mixed: EPS of $0.07 beat the $0.04 consensus, but revenue of $218.71 million came in below estimates of $221.75 million. Revenue rose 1.7% year over year.
• CEO Bruce McClelland bought 60,000 shares at an average price of $1.60, increasing his stake by 2.06%.

Shares of Ribbon Communications Inc. (NASDAQ:RBBN - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the six ratings firms that are currently covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and four have issued a buy rating on the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $3.20.

A number of analysts recently issued reports on the company. CL King set a $3.30 price objective on Ribbon Communications in a research note on Wednesday, July 29th. Rosenblatt Securities cut their target price on Ribbon Communications from $2.20 to $1.80 and set a "neutral" rating for the company in a research note on Wednesday, October 28th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Ribbon Communications in a report on Wednesday. Finally, B. Riley Financial reiterated a "buy" rating and set a $3.10 price target (down from $3.30) on shares of Ribbon Communications in a research report on Wednesday, October 28th.

Ribbon Communications Trading Down 2.2%

NASDAQ RBBN opened at $1.35 on Friday. The business's fifty day moving average is $1.69 and its 200-day moving average is $2.21. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.32 and a quick ratio of 1.06. The stock has a market capitalization of $241.88 million, a price-to-earnings ratio of 13.50 and a beta of 1.46. Ribbon Communications has a one year low of $1.28 and a one year high of $3.41.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The communications equipment provider reported $0.07 EPS for the quarter, beating the consensus estimate of $0.04 by $0.03. The business had revenue of $218.71 million for the quarter, compared to the consensus estimate of $221.75 million. Ribbon Communications had a return on equity of 20.61% and a net margin of 2.32%. Ribbon Communications's revenue for the quarter was up 1.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.04 earnings per share. Equities research analysts predict that Ribbon Communications will post -0.14 EPS for the current year.

Insider Activity at Ribbon Communications

In other news, CEO Bruce Mcclelland acquired 60,000 shares of Ribbon Communications stock in a transaction that occurred on Friday, October 30th. The stock was bought at an average price of $1.60 per share, with a total value of $96,000.00. Following the completion of the purchase, the chief executive officer owned 2,969,454 shares in the company, valued at approximately $4,751,126.40. The trade was a 2.06% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 3.99% of the company's stock.

Institutional Investors Weigh In On Ribbon Communications

Several large investors have recently added to or reduced their stakes in RBBN. BlackRock Inc. bought a new position in shares of Ribbon Communications in the second quarter worth approximately $16,723,000. Paradigm Capital Management Inc. NY purchased a new position in Ribbon Communications in the 2nd quarter worth approximately $7,105,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Ribbon Communications in the 2nd quarter worth approximately $5,179,000. Bank of New York Mellon Corp bought a new position in shares of Ribbon Communications in the 2nd quarter worth $889,000. Finally, Ieq Capital LLC bought a new position in shares of Ribbon Communications in the 2nd quarter worth $48,000. Institutional investors own 70.92% of the company's stock.

Ribbon Communications Company Profile

Ribbon Communications Inc NASDAQ: RBBN provides communications software, networking solutions and related services for service providers, enterprises and government organizations. The company helps customers build, operate and secure voice, data and unified communications networks across cloud, IP and optical environments.

Ribbon's offerings include session border controllers, voice and unified communications platforms, signaling and routing solutions, policy and analytics tools, and software designed to support cloud communications and 5G networks.

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