Sumitomo Mitsui DS Asset Management Company Ltd Takes Position in Ciena Corporation $CIEN

Key Points

• Sumitomo Mitsui DS Asset Management opened a new position in Ciena during the fourth quarter, buying 15,328 shares valued at about $3.585 million.
• Ciena’s latest quarterly results beat expectations, with EPS of $1.35 versus $1.17 expected and revenue of $1.43 billion, up 33.1% year over year.
• Analysts remain broadly positive on the stock, with an average rating of Moderate Buy and an average price target of $367.56, even as the shares have seen notable insider selling recently.

Sumitomo Mitsui DS Asset Management Company Ltd bought a new stake in shares of Ciena Corporation (NYSE:CIEN - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund bought 15,328 shares of the communications equipment provider's stock, valued at approximately $3,585,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. KBC Group NV raised its position in shares of Ciena by 11.3% during the 4th quarter. KBC Group NV now owns 31,161 shares of the communications equipment provider's stock worth $7,288,000 after buying an additional 3,156 shares in the last quarter. Convergence Investment Partners LLC bought a new stake in shares of Ciena in the 3rd quarter worth approximately $1,726,000. FengHe Fund Management Pte. Ltd. raised its holdings 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 worth $154,585,000 after purchasing an additional 410,588 shares in the last quarter. Peak Financial Advisors LLC raised its holdings in shares of 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 purchasing an additional 8,003 shares in the last quarter. Finally, Semanteon Capital Management LP bought a new stake in shares of Ciena in the 3rd quarter worth approximately $568,000. 91.99% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Barclays lifted their target price on shares of Ciena from $279.00 to $372.00 and gave the stock an "overweight" rating in a research report on Friday, March 6th. Morgan Stanley boosted their target price on shares of Ciena from $286.00 to $405.00 and gave the stock an "equal weight" rating in a research report on Monday, April 20th. Evercore set a $330.00 target price on shares of Ciena in a research report on Thursday, February 19th. Needham & Company LLC boosted their price objective on shares of Ciena from $280.00 to $370.00 and gave the stock a "buy" rating in a research note on Thursday, March 5th. Finally, Citigroup boosted their price objective on shares of Ciena from $280.00 to $345.00 and gave the stock a "buy" rating in a research note on Friday, March 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $367.56.

Ciena Stock Performance

NYSE CIEN opened at $546.61 on Friday. The stock has a market cap of $77.29 billion, a P/E ratio of 348.16, a PEG ratio of 1.76 and a beta of 1.24. The company's 50-day simple moving average is $427.16 and its 200 day simple moving average is $299.27. Ciena Corporation has a twelve month low of $70.77 and a twelve month high of $583.78. The company has a quick ratio of 2.14, a current ratio of 2.81 and a debt-to-equity ratio of 0.55.

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

Insider Buying and Selling

In related news, SVP Jason Phipps sold 22,014 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $409.80, for a total transaction of $9,021,337.20. Following the completion of the sale, the senior vice president owned 68 shares in the company, valued at $27,866.40. This trade represents a 99.69% decrease in their position. The sale was disclosed in a document filed 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 1,200 shares of the stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $471.79, for a total transaction of $566,148.00. Following the sale, the senior vice president owned 45,141 shares of the company's stock, valued at $21,297,072.39. This trade represents a 2.59% 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. Insiders sold 42,974 shares of company stock worth $17,418,863 in the last quarter. 0.58% of the stock is owned by corporate insiders.

Ciena 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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