Ribbon Communications (NASDAQ:RBBN) Shares Gap Down - Should You Sell?

Key Points

• Ribbon Communications (NASDAQ:RBBN) shares experienced a significant gap down, opening at $3.41 after closing at $4.00, representing a decline of about 17.1%.
• Despite the stock's drop, analysts have a mixed outlook; Rosenblatt Securities maintains a "buy" rating with a target price of $6.00, while Weiss Ratings assigned a "sell (d-)" rating.
• Insider activity has been notable, with significant share sales occurring; for instance, director Beatriz V. Infante sold 8,690 shares, indicating a 2.47% decrease in her position.

Ribbon Communications Inc. (NASDAQ:RBBN - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $4.00, but opened at $3.41. Ribbon Communications shares last traded at $3.23, with a volume of 542,359 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on RBBN shares. Rosenblatt Securities reiterated a "buy" rating and set a $6.00 target price on shares of Ribbon Communications in a research report on Thursday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Ribbon Communications in a research report on Wednesday, October 8th. Finally, Wall Street Zen upgraded Ribbon Communications from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. Four investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, Ribbon Communications has a consensus rating of "Moderate Buy" and a consensus target price of $6.00.

Ribbon Communications Stock Down 17.1%

The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.13 and a current ratio of 1.38. The firm has a fifty day simple moving average of $3.89 and a 200-day simple moving average of $3.78. The company has a market capitalization of $587.20 million, a PE ratio of -13.34 and a beta of 1.36.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) last posted its quarterly earnings data on Monday, March 27th. The communications equipment provider reported $0.01 earnings per share (EPS) for the quarter. The company had revenue of $100.28 million for the quarter. Ribbon Communications had a positive return on equity of 7.08% and a negative net margin of 5.14%. Equities research analysts anticipate that Ribbon Communications Inc. will post 0.18 EPS for the current fiscal year.

Insider Activity at Ribbon Communications

In related news, Director Beatriz V. Infante sold 8,690 shares of the business's stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $3.98, for a total transaction of $34,586.20. Following the completion of the transaction, the director owned 343,224 shares in the company, valued at $1,366,031.52. The trade was a 2.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Dan Redington sold 155,434 shares of the business's stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $4.03, for a total value of $626,399.02. Following the transaction, the executive vice president owned 14,176 shares of the company's stock, valued at $57,129.28. This represents a 91.64% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 198,300 shares of company stock valued at $801,173. Insiders own 1.72% of the company's stock.

Institutional Trading of Ribbon Communications

A number of hedge funds and other institutional investors have recently modified their holdings of RBBN. Connor Clark & Lunn Investment Management Ltd. raised its stake in shares of Ribbon Communications by 76.1% in the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,189,250 shares of the communications equipment provider's stock worth $4,662,000 after buying an additional 513,985 shares in the last quarter. Nuveen LLC purchased a new position in shares of Ribbon Communications during the first quarter valued at $1,297,000. Royce & Associates LP grew its holdings in shares of Ribbon Communications by 10.3% during the first quarter. Royce & Associates LP now owns 3,092,068 shares of the communications equipment provider's stock valued at $12,121,000 after buying an additional 289,210 shares in the last quarter. AQR Capital Management LLC purchased a new position in shares of Ribbon Communications during the first quarter valued at $805,000. Finally, Geode Capital Management LLC grew its holdings in shares of Ribbon Communications by 7.9% during the second quarter. Geode Capital Management LLC now owns 2,303,256 shares of the communications equipment provider's stock valued at $9,238,000 after buying an additional 169,402 shares in the last quarter. Institutional investors own 70.92% of the company's stock.

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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