Gateway Investment Advisers LLC Decreases Stock Holdings in Ciena Corporation $CIEN

Key Points

• Gateway Investment Advisers cut its stake in Ciena by 15.4% in Q4, leaving 17,830 shares worth $4.17M, while several other institutions (notably Mitsubishi UFJ and Swedbank) added or initiated large positions, leaving institutional ownership at about 91.99%.
• Company insiders sold significant stock in the quarter—CEO Gary B. Smith sold 2,952 shares and SVP Jason Phipps sold 22,014 shares—with insiders selling a total of 42,974 shares worth ~$17.42M and insiders owning just ~0.58% of the company.
• Ciena beat Q results (EPS $1.35 vs. $1.17 est.; revenue $1.43B, up 33.1% YoY) but now trades near a 52-week high (~$536) with a high P/E (~342) and a MarketBeat consensus of "Moderate Buy" and an average price target of $367.56.

Gateway Investment Advisers LLC trimmed its position in shares of Ciena Corporation (NYSE:CIEN - Free Report) by 15.4% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund owned 17,830 shares of the communications equipment provider's stock after selling 3,255 shares during the quarter. Gateway Investment Advisers LLC's holdings in Ciena were worth $4,170,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of the company. Navellier & Associates Inc. purchased a new stake in shares of Ciena during the fourth quarter valued at about $3,574,000. Swedbank AB purchased a new stake in shares of Ciena during the fourth quarter valued at about $23,540,000. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Ciena by 37,022.0% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 135,124 shares of the communications equipment provider's stock valued at $33,249,000 after buying an additional 134,760 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd purchased a new stake in shares of Ciena during the fourth quarter valued at about $3,585,000. Finally, SBI Securities Co. Ltd. lifted its position in shares of Ciena by 410.4% during the fourth quarter. SBI Securities Co. Ltd. now owns 2,052 shares of the communications equipment provider's stock valued at $480,000 after buying an additional 1,650 shares during the last quarter. 91.99% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CEO Gary B. Smith sold 2,952 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $359.53, for a total value of $1,061,332.56. Following the transaction, the chief executive officer owned 293,084 shares in the company, valued at approximately $105,372,490.52. This represents a 1.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Jason Phipps sold 22,014 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $409.80, for a total transaction of $9,021,337.20. Following the completion of the transaction, the senior vice president owned 68 shares in the company, valued at approximately $27,866.40. This trade represents a 99.69% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 42,974 shares of company stock worth $17,418,863. 0.58% of the stock is owned by company insiders.

Ciena Stock Performance

Shares of Ciena stock opened at $536.34 on Friday. Ciena Corporation has a 52 week low of $70.77 and a 52 week high of $583.78. The company has a 50 day moving average price of $427.16 and a 200 day moving average price of $299.27. The company has a quick ratio of 2.14, a current ratio of 2.81 and a debt-to-equity ratio of 0.55. The firm has a market capitalization of $75.84 billion, a P/E ratio of 341.62, a PEG ratio of 1.89 and a beta of 1.24.

Ciena (NYSE:CIEN - Get Free Report) last issued its quarterly earnings results on Thursday, March 5th. The communications equipment provider reported $1.35 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.18. Ciena had a net margin of 4.47% and a return on equity of 12.09%. The company had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter in the prior year, the company earned $0.64 EPS. Ciena's quarterly revenue was up 33.1% on a year-over-year basis. Sell-side analysts expect that Ciena Corporation will post 5.12 EPS for the current year.

Analyst Ratings Changes

CIEN has been the subject of several analyst reports. Citigroup increased their price target on shares of Ciena from $280.00 to $345.00 and gave the company a "buy" rating in a research report on Friday, March 6th. Rothschild & Co Redburn assumed coverage on shares of Ciena in a research report on Friday, May 1st. They set a "neutral" rating and a $416.00 price target for the company. B. Riley Financial increased their price objective on shares of Ciena from $222.00 to $283.00 and gave the company a "neutral" rating in a research report on Friday, March 6th. TD Cowen assumed coverage on shares of Ciena in a research report on Thursday, March 12th. They issued a "buy" rating and a $425.00 price objective for the company. Finally, Needham & Company LLC increased their price objective on shares of Ciena from $280.00 to $370.00 and gave the company a "buy" rating in a research report on Thursday, March 5th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $367.56.

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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