Ciena (NYSE:CIEN) Stock Price Up 5.6% - Should You Buy?

Key Points

• Ciena shares rose 5.6% to $361.11 on heavier-than-average trading volume. The stock remains below its 50-day and 200-day moving averages, while its elevated valuation includes a P/E ratio of 80.60.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $506.11, implying substantial upside from the reported price.
• Ciena exceeded quarterly expectations, reporting $2.11 in earnings per share and $1.67 billion in revenue, with revenue up 37% year over year. However, insiders sold more than $13.4 million of shares over the past 90 days.

Ciena Corporation (NYSE:CIEN - Get Free Report)'s stock price traded up 5.6% on Wednesday. The company traded as high as $363.97 and last traded at $361.11. Approximately 2,972,762 shares changed hands during mid-day trading, an increase of 3% from the average session volume of 2,896,132 shares. The stock had previously closed at $341.95.

Analyst Upgrades and Downgrades

CIEN has been the topic of several recent analyst reports. Sanford C. Bernstein began coverage on shares of Ciena in a research note on Wednesday, September 30th. They set an "outperform" rating and a $440.00 price objective on the stock. Zacks Research raised shares of Ciena from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 9th. Bank of America reiterated a "buy" rating on shares of Ciena in a report on Thursday, August 20th. Needham & Company LLC reissued a "buy" rating and set a $520.00 price target on shares of Ciena in a research note on Thursday, September 17th. Finally, Raymond James Financial restated an "outperform" rating and set a $600.00 price objective on shares of Ciena in a report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $506.11.

Ciena Stock Up 5.6%

The company has a debt-to-equity ratio of 1.06, a current ratio of 3.80 and a quick ratio of 3.17. The firm's 50-day moving average is $374.30 and its 200 day moving average is $439.96. The stock has a market cap of $51.21 billion, a price-to-earnings ratio of 80.60, a price-to-earnings-growth ratio of 4.78 and a beta of 1.28.

Ciena (NYSE:CIEN - Get Free Report) last posted its quarterly earnings results on Thursday, September 3rd. The communications equipment provider reported $2.11 earnings per share for the quarter, topping analysts' consensus estimates of $1.73 by $0.38. The company had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.64 billion. Ciena had a net margin of 10.87% and a return on equity of 25.33%. Ciena's revenue was up 37.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.35 earnings per share. Sell-side analysts anticipate that Ciena Corporation will post 6.00 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Thomas Nevens sold 3,738 shares of Ciena stock in a transaction on Wednesday, September 23rd. The stock was sold at an average price of $359.04, for a total value of $1,342,091.52. Following the transaction, the director owned 6,289 shares in the company, valued at approximately $2,258,002.56. This trade represents a 37.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Bruce L. Claflin sold 2,857 shares of Ciena stock in a transaction on Thursday, September 24th. The shares were sold at an average price of $355.91, for a total value of $1,016,834.87. Following the completion of the transaction, the director owned 8,279 shares in the company, valued at $2,946,578.89. The trade was a 25.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 36,014 shares of company stock worth $13,457,571. Corporate insiders own 0.58% of the company's stock.

Hedge Funds Weigh In On Ciena

A number of large investors have recently modified their holdings of CIEN. Bank of New York Mellon Corp purchased a new stake in shares of Ciena in the second quarter worth about $404,948,000. Hsbc Holdings PLC raised its holdings in shares of Ciena by 309.8% during the 1st quarter. Hsbc Holdings PLC now owns 223,203 shares of the communications equipment provider's stock valued at $86,509,000 after buying an additional 168,736 shares during the period. SG Americas Securities LLC raised its holdings in shares of Ciena by 147.3% during the 1st quarter. SG Americas Securities LLC now owns 190,949 shares of the communications equipment provider's stock valued at $74,132,000 after buying an additional 113,744 shares during the period. E20 Capital Ltd purchased a new stake in shares of Ciena during the 1st quarter valued at about $41,676,000. Finally, Ardmore Road Asset Management LP acquired a new position in Ciena during the 1st quarter worth approximately $35,329,000. 91.99% of the stock is currently owned by hedge funds and other institutional investors.

About Ciena

Ciena Corporation NYSE: CIEN is a networking technology company that provides hardware, software, and services for communications networks. Its solutions help telecommunications carriers, cloud providers, enterprises, government organizations, and research institutions build, manage, and automate high-capacity networks.

The company's portfolio includes optical networking systems, routing and switching platforms, network automation software, and network management tools. Ciena also offers consulting, implementation, maintenance, and professional services designed to support network planning, deployment, optimization, and ongoing operations.

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