Ribbon Communications (NASDAQ:RBBN) Announces Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Key Points

• Ribbon Communications reported a quarterly EPS of $0.01, missing estimates by $0.05 as the consensus was $0.06.
• The company had a negative net margin of 5.14% and a positive return on equity of 7.08%.
• Several insiders, including Director Beatriz V. Infante and EVP Dan Redington, sold a total of 198,300 shares valued at approximately $801,173 in recent transactions.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) announced its quarterly earnings results on Wednesday. The communications equipment provider reported $0.01 EPS for the quarter, missing the consensus estimate of $0.06 by ($0.05), Zacks reports. Ribbon Communications had a negative net margin of 5.14% and a positive return on equity of 7.08%.

Ribbon Communications Stock Performance

NASDAQ RBBN traded down $0.04 on Wednesday, hitting $4.00. 775,410 shares of the company's stock traded hands, compared to its average volume of 563,195. The firm has a market capitalization of $708.32 million, a PE ratio of -16.00 and a beta of 1.36. The firm's 50-day moving average price is $3.89 and its two-hundred day moving average price is $3.78. The company has a current ratio of 1.38, a quick ratio of 1.13 and a debt-to-equity ratio of 0.88. Ribbon Communications has a 1-year low of $3.01 and a 1-year high of $5.38.

Insiders Place Their Bets

In related news, Director Beatriz V. Infante sold 8,690 shares of the stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $3.98, for a total value of $34,586.20. Following the completion of the transaction, the director directly owned 343,224 shares in the company, valued at approximately $1,366,031.52. This represents a 2.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Dan Redington sold 155,434 shares of Ribbon Communications stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $4.03, for a total transaction of $626,399.02. Following the sale, the executive vice president owned 14,176 shares of the company's stock, valued at approximately $57,129.28. This represents a 91.64% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 198,300 shares of company stock valued at $801,173 in the last ninety days. 2.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Ribbon Communications

Institutional investors have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC boosted its position in Ribbon Communications by 453.3% during the second quarter. Tower Research Capital LLC TRC now owns 10,025 shares of the communications equipment provider's stock worth $40,000 after purchasing an additional 8,213 shares in the last quarter. Keel Point LLC acquired a new stake in Ribbon Communications during the second quarter worth approximately $45,000. Prudential Financial Inc. acquired a new stake in shares of Ribbon Communications during the second quarter worth $47,000. Occudo Quantitative Strategies LP acquired a new stake in shares of Ribbon Communications in the second quarter worth approximately $50,000. Finally, Engineers Gate Manager LP purchased a new position in shares of Ribbon Communications in the 2nd quarter worth $53,000. Hedge funds and other institutional investors own 70.92% of the company's stock.

Analyst Upgrades and Downgrades

RBBN has been the subject of several research analyst reports. Rosenblatt Securities reiterated a "buy" rating and set a $6.00 target price on shares of Ribbon Communications in a research report on Thursday, September 11th. Weiss Ratings restated a "sell (d-)" rating on shares of Ribbon Communications in a report on Wednesday, October 8th. Finally, Wall Street Zen raised shares of Ribbon Communications from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Four equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $6.00.

Ribbon Communications Company Profile

Ribbon Communications Inc provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, Cloud and Edge, and IP Optical Networks. The Cloud and Edge segment provides software and hardware products, solutions, and services for voice over internet protocol communications, voice over long-term evolution, and voice over 5G communications, and unified communications and collaboration.

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