SummitTX Capital L.P. Purchases New Position in Ciena Corporation $CIEN

Key Points

• SummitTX Capital bought 5,039 Ciena shares worth approximately $1.96 million in the first quarter. Institutional investors collectively own 91.99% of the company.
• Ciena reported quarterly EPS of $1.64, exceeding estimates of $1.46, while revenue rose 39.5% year over year to $1.57 billion.
• Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $530.56, although company insiders sold 21,627 shares worth nearly $11 million during the latest quarter.

SummitTX Capital L.P. purchased a new position in Ciena Corporation (NYSE:CIEN - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 5,039 shares of the communications equipment provider's stock, valued at approximately $1,956,000.

Other large investors also recently added to or reduced their stakes in the company. Elyxium Wealth LLC bought a new stake in shares of Ciena in the 4th quarter valued at approximately $2,747,810,000. State Street Corp boosted its holdings in shares of Ciena by 17.2% in the 4th quarter. State Street Corp now owns 5,102,409 shares of the communications equipment provider's stock worth $1,193,300,000 after purchasing an additional 750,128 shares during the period. Price T Rowe Associates Inc. MD increased its position in shares of Ciena by 53.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,051,625 shares of the communications equipment provider's stock valued at $947,554,000 after purchasing an additional 1,404,132 shares during the last quarter. Bank of America Corp DE increased its position in shares of Ciena by 10.4% during the 2nd quarter. Bank of America Corp DE now owns 3,495,795 shares of the communications equipment provider's stock valued at $284,313,000 after purchasing an additional 329,821 shares during the last quarter. Finally, Corient Private Wealth LLC raised its holdings in Ciena by 30,114.5% during the 4th quarter. Corient Private Wealth LLC now owns 2,870,677 shares of the communications equipment provider's stock valued at $671,365,000 after buying an additional 2,861,176 shares during the period. 91.99% of the stock is owned by institutional investors.

Ciena Price Performance

Shares of CIEN stock opened at $350.05 on Wednesday. The stock has a 50 day moving average price of $470.37 and a 200 day moving average price of $412.04. Ciena Corporation has a 52-week low of $84.41 and a 52-week high of $637.51. The company has a debt-to-equity ratio of 0.53, a quick ratio of 2.11 and a current ratio of 2.73. The firm has a market capitalization of $49.55 billion, a P/E ratio of 116.68 and a beta of 1.27.

Ciena (NYSE:CIEN - Get Free Report) last announced its quarterly earnings data on Thursday, June 4th. The communications equipment provider reported $1.64 EPS for the quarter, beating the consensus estimate of $1.46 by $0.18. Ciena had a return on equity of 18.15% and a net margin of 7.87%.The company had revenue of $1.57 billion for the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter in the prior year, the company posted $0.42 EPS. Ciena's quarterly revenue was up 39.5% on a year-over-year basis. As a group, sell-side analysts predict that Ciena Corporation will post 5.4 earnings per share for the current year.

Wall Street Analyst Weigh In

CIEN has been the subject of a number of analyst reports. Weiss Ratings downgraded Ciena from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday. Raymond James Financial boosted their price objective on shares of Ciena from $320.00 to $530.00 and gave the company an "outperform" rating in a research report on Thursday, June 4th. TD Cowen increased their target price on shares of Ciena from $425.00 to $675.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Bank of America raised their target price on shares of Ciena from $550.00 to $660.00 and gave the stock a "buy" rating in a report on Tuesday, May 26th. Finally, Rothschild & Co Redburn assumed coverage on shares of Ciena in a research note on Friday, May 1st. They set a "neutral" rating and a $416.00 price target for the company. 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 stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $530.56.

Insider Transactions at Ciena

In related news, SVP Jason Phipps sold 2,629 shares of Ciena stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $466.20, for a total transaction of $1,225,639.80. Following the completion of the sale, the senior vice president owned 62,382 shares in the company, valued at $29,082,488.40. This trade represents a 4.04% decrease in their position. 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 Joseph Cumello sold 1,586 shares of the company's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $466.33, for a total transaction of $739,599.38. Following the completion of the transaction, the senior vice president owned 42,872 shares in the company, valued at $19,992,499.76. This represents a 3.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 21,627 shares of company stock valued at $10,974,985. Company insiders own 0.58% of the company's stock.

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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