Pinnbrook Capital Management LP Buys New Stake in Ciena Corporation $CIEN

Key Points

• Pinnbrook Capital Management initiated a new position in Ciena, buying 19,165 shares worth about $4.48 million in the fourth quarter.
• Ciena reported strong quarterly results, with EPS of $1.35 topping estimates and revenue of $1.43 billion, while revenue rose 33.1% year over year.
• Wall Street sentiment remains upbeat, with several analysts raising price targets and the stock currently carrying a Moderate Buy consensus rating and average target price of $398.83.

Pinnbrook Capital Management LP bought a new stake in Ciena Corporation (NYSE:CIEN - Free Report) in the 4th quarter, according to its most recent filing with the SEC. The fund bought 19,165 shares of the communications equipment provider's stock, valued at approximately $4,482,000.

Other large investors have also recently made changes to their positions in the company. KBC Group NV lifted its stake in shares of Ciena by 11.3% in the 4th quarter. KBC Group NV now owns 31,161 shares of the communications equipment provider's stock valued at $7,288,000 after purchasing an additional 3,156 shares during the period. Convergence Investment Partners LLC acquired a new position in shares of Ciena in the 3rd quarter valued at $1,726,000. FengHe Fund Management Pte. Ltd. lifted its stake in shares of Ciena by 164.0% in the 4th quarter. FengHe Fund Management Pte. Ltd. now owns 660,988 shares of the communications equipment provider's stock valued at $154,585,000 after purchasing an additional 410,588 shares during the period. Peak Financial Advisors LLC increased its holdings in Ciena by 222.7% in the 4th quarter. Peak Financial Advisors LLC now owns 11,596 shares of the communications equipment provider's stock worth $2,712,000 after acquiring an additional 8,003 shares in the last quarter. Finally, Semanteon Capital Management LP purchased a new stake in Ciena in the 3rd quarter worth $568,000. 91.99% of the stock is currently owned by institutional investors and hedge funds.

Ciena Trading Up 5.9%

Shares of CIEN opened at $587.69 on Friday. The company has a current ratio of 2.81, a quick ratio of 2.14 and a debt-to-equity ratio of 0.55. Ciena Corporation has a 12-month low of $70.77 and a 12-month high of $598.84. The firm has a 50-day moving average price of $473.40 and a 200 day moving average price of $326.32. The firm has a market capitalization of $83.10 billion, a P/E ratio of 374.33, a P/E/G ratio of 1.82 and a beta of 1.24.

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

Wall Street Analyst Weigh In

CIEN has been the subject of several recent analyst reports. Rosenblatt Securities boosted their price target on shares of Ciena from $305.00 to $350.00 and gave the stock a "buy" rating in a report on Friday, March 6th. Bank of America boosted their price target on shares of Ciena from $355.00 to $550.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. TD Cowen boosted their price target on shares of Ciena from $425.00 to $675.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Raymond James Financial reissued an "outperform" rating and issued a $320.00 price target on shares of Ciena in a report on Thursday, March 5th. Finally, Barclays boosted their price target on shares of Ciena from $279.00 to $372.00 and gave the stock an "overweight" rating in a report on Friday, March 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $398.83.

Insiders Place Their Bets

In other Ciena news, CEO Gary B. Smith sold 2,952 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $415.51, for a total transaction of $1,226,585.52. Following the completion of the transaction, the chief executive officer owned 281,365 shares of the company's stock, valued at $116,909,971.15. This trade represents a 1.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Brodie Gage sold 5,000 shares of the stock in a transaction dated Tuesday, March 24th. The stock was sold at an average price of $405.00, for a total transaction of $2,025,000.00. Following the transaction, the senior vice president directly owned 46,341 shares of the company's stock, valued at approximately $18,768,105. This trade represents a 9.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 44,174 shares of company stock valued at $18,878,661 over the last 90 days. 0.58% of the stock is owned by company insiders.

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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