Dorsey Wright & Associates Makes New Investment in Ciena Corporation $CIEN

Key Points

• Dorsey Wright & Associates opened a new position in Ciena during the first quarter, buying 3,938 shares valued at about $1.53 million.
• Ciena reported better-than-expected quarterly results, with earnings of $1.64 per share and revenue of $1.57 billion, both above analyst estimates, while revenue rose 39.5% year over year.
• Analyst sentiment remains constructive: multiple firms raised price targets, and the stock now carries a Moderate Buy consensus with an average target price of $530.56.

Dorsey Wright & Associates purchased a new stake in Ciena Corporation (NYSE:CIEN - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 3,938 shares of the communications equipment provider's stock, valued at approximately $1,529,000.

Other hedge funds have also modified their holdings of the company. Bogart Wealth LLC raised its position in shares of Ciena by 635.7% during the first quarter. Bogart Wealth LLC now owns 103 shares of the communications equipment provider's stock worth $40,000 after purchasing an additional 89 shares during the period. Transamerica Financial Advisors LLC lifted its holdings in shares of Ciena by 71.0% during the 4th quarter. Transamerica Financial Advisors LLC now owns 106 shares of the communications equipment provider's stock valued at $25,000 after purchasing an additional 44 shares in the last quarter. Whittier Trust Co. of Nevada Inc. grew its position in shares of Ciena by 85.5% in the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 141 shares of the communications equipment provider's stock valued at $55,000 after purchasing an additional 65 shares during the period. Hilltop National Bank acquired a new position in shares of Ciena in the 4th quarter valued at approximately $35,000. Finally, Truvestments Capital LLC increased its stake in Ciena by 45.3% during the 4th quarter. Truvestments Capital LLC now owns 154 shares of the communications equipment provider's stock worth $36,000 after purchasing an additional 48 shares in the last quarter. 91.99% of the stock is currently owned by institutional investors and hedge funds.

Ciena Stock Down 3.9%

Ciena stock opened at $373.72 on Friday. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.73 and a quick ratio of 2.11. The company's 50-day moving average is $495.15 and its 200-day moving average is $403.75. The firm has a market capitalization of $52.90 billion, a PE ratio of 124.57 and a beta of 1.27. Ciena Corporation has a fifty-two week low of $83.20 and a fifty-two week high of $637.51.

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

Insider Buying and Selling at Ciena

In other news, SVP Joseph Cumello sold 1,586 shares of the business's stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $466.33, for a total value of $739,599.38. Following the completion of the sale, the senior vice president owned 42,872 shares of the company's stock, valued at approximately $19,992,499.76. The trade was a 3.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gary B. Smith sold 2,952 shares of the business's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $468.83, for a total transaction of $1,383,986.16. Following the completion of the sale, the chief executive officer directly owned 254,886 shares of the company's stock, valued at $119,498,203.38. This represents a 1.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 21,627 shares of company stock worth $10,974,985 in the last ninety days. Insiders own 0.58% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on CIEN shares. Barclays increased their price objective on shares of Ciena from $372.00 to $607.00 and gave the stock an "overweight" rating in a research report on Friday, June 5th. Zacks Research raised shares of Ciena from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 2nd. Citigroup increased their target price on Ciena from $345.00 to $658.00 and gave the stock a "buy" rating in a report on Monday, May 18th. Rothschild & Co Redburn began coverage on Ciena in a report on Friday, May 1st. They set a "neutral" rating and a $416.00 target price for the company. Finally, JPMorgan Chase & Co. lifted their price target on Ciena from $380.00 to $550.00 and gave the company an "overweight" rating in a research note on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, Ciena has a consensus rating of "Moderate Buy" and an average price target of $530.56.

Ciena Company Profile

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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