Ribbon Communications (NASDAQ:RBBN) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Ribbon Communications (NASDAQ:RBBN) from a "buy" to a "hold"; overall analyst mix is four buys, one hold and one sell, yielding a consensus "Moderate Buy" and an average target price of $3.58.
• In the most recent quarter Ribbon posted EPS of -$0.05 (beating estimates by $0.01) while revenue fell 10.3% year‑over‑year to $162.6 million; the stock trades around $2.75 with a 1‑year range of $1.80–$4.29 and a market cap of about $483 million.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Sunday.

Other equities analysts have also issued reports about the company. Northland Securities set a $4.00 price target on Ribbon Communications in a research report on Friday, February 6th. Citizens Jmp reduced their price target on Ribbon Communications from $6.00 to $4.00 and set a "market outperform" rating on the stock in a research report on Friday, February 6th. Craig Hallum reissued a "buy" rating and set a $3.00 price target on shares of Ribbon Communications in a research report on Wednesday, February 11th. B. Riley Financial reissued a "neutral" rating on shares of Ribbon Communications in a research report on Wednesday. Finally, Rosenblatt Securities reduced their price target on Ribbon Communications from $6.00 to $4.00 and set a "buy" rating on the stock in a research report on Friday, February 6th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $3.58.

Ribbon Communications Price Performance

Shares of NASDAQ RBBN opened at $2.75 on Friday. Ribbon Communications has a 1-year low of $1.80 and a 1-year high of $4.29. The business has a 50-day moving average of $2.34 and a 200-day moving average of $2.71. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.44 and a quick ratio of 1.19. The company has a market capitalization of $482.65 million, a price-to-earnings ratio of 16.18 and a beta of 1.26.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) last announced its earnings results on Tuesday, April 28th. The communications equipment provider reported ($0.05) EPS for the quarter, beating the consensus estimate of ($0.06) by $0.01. The business had revenue of $162.61 million for the quarter, compared to the consensus estimate of $163.43 million. Ribbon Communications had a return on equity of 24.53% and a net margin of 3.80%.The company's revenue was down 10.3% on a year-over-year basis. During the same period last year, the business posted ($0.03) EPS. On average, equities analysts anticipate that Ribbon Communications will post 0.02 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. State Street Corp boosted its holdings in Ribbon Communications by 0.3% in the fourth quarter. State Street Corp now owns 2,099,793 shares of the communications equipment provider's stock valued at $6,047,000 after purchasing an additional 5,280 shares during the last quarter. Alliancebernstein L.P. boosted its holdings in Ribbon Communications by 5.3% in the third quarter. Alliancebernstein L.P. now owns 119,317 shares of the communications equipment provider's stock valued at $453,000 after purchasing an additional 6,000 shares during the last quarter. GSA Capital Partners LLP boosted its holdings in Ribbon Communications by 2.9% in the third quarter. GSA Capital Partners LLP now owns 216,283 shares of the communications equipment provider's stock valued at $822,000 after purchasing an additional 6,173 shares during the last quarter. Susquehanna Fundamental Investments LLC boosted its holdings in Ribbon Communications by 65.8% in the third quarter. Susquehanna Fundamental Investments LLC now owns 18,401 shares of the communications equipment provider's stock valued at $70,000 after purchasing an additional 7,301 shares during the last quarter. Finally, State of Alaska Department of Revenue purchased a new position in Ribbon Communications in the third quarter valued at about $29,000. Hedge funds and other institutional investors own 70.92% of the company's stock.

About Ribbon Communications

Ribbon Communications Inc is a global provider of real-time communications software and network solutions for service providers and enterprises. The company's offerings address the full life cycle of voice, video and data transmission across fixed, mobile and cloud environments. Ribbon's technology portfolio is designed to enable secure, intelligent and interoperable communications in applications such as unified communications, contact centers, wholesale VoIP interconnect and next-generation 5G networks.

Ribbon's product suite includes session border controllers (SBCs), which secure and interwork IP voice and multimedia sessions; Diameter signaling controllers for 4G/5G policy and charging control; network edge virtualization platforms; and analytics engines for service assurance and fraud management.

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