Ribbon Communications (NASDAQ:RBBN) Shares Gap Down on Disappointing Earnings

Ribbon Communications Inc. (NASDAQ:RBBN - Get Free Report)'s stock price gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $3.75, but opened at $3.17. Ribbon Communications shares last traded at $3.06, with a volume of 231,728 shares traded.

The communications equipment provider reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($0.04). The company had revenue of $181.28 million during the quarter, compared to the consensus estimate of $191.66 million. Ribbon Communications had a negative net margin of 6.50% and a positive return on equity of 7.36%. The company's quarterly revenue was up .9% on a year-over-year basis. During the same quarter last year, the firm posted ($0.01) earnings per share.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. JMP Securities reiterated a "market outperform" rating and set a $6.00 price target on shares of Ribbon Communications in a research report on Thursday, February 13th. StockNews.com cut shares of Ribbon Communications from a "buy" rating to a "hold" rating in a research note on Friday. Rosenblatt Securities restated a "buy" rating and set a $5.50 target price on shares of Ribbon Communications in a report on Wednesday, April 30th. Finally, B. Riley decreased their price target on Ribbon Communications from $7.50 to $6.00 and set a "buy" rating for the company in a report on Wednesday, April 30th. One analyst has rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $5.88.

Institutional Trading of Ribbon Communications

Institutional investors and hedge funds have recently bought and sold shares of the stock. Walleye Capital LLC acquired a new position in Ribbon Communications during the fourth quarter worth $43,000. Polymer Capital Management US LLC bought a new stake in shares of Ribbon Communications in the 4th quarter valued at about $55,000. Penn Capital Management Company LLC purchased a new position in Ribbon Communications during the fourth quarter worth about $56,000. Renaissance Technologies LLC bought a new stake in shares of Ribbon Communications during the fourth quarter valued at about $59,000. Finally, KLP Kapitalforvaltning AS bought a new stake in shares of Ribbon Communications in the 4th quarter worth approximately $64,000. Institutional investors and hedge funds own 70.92% of the company's stock.

Ribbon Communications Price Performance

The stock has a market cap of $555.95 million, a PE ratio of -9.88 and a beta of 1.37. The company has a current ratio of 1.42, a quick ratio of 1.16 and a debt-to-equity ratio of 0.84. The business has a fifty day simple moving average of $3.82 and a two-hundred day simple moving average of $3.98.

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.