Rosenblatt Securities Reiterates Buy Rating for Ribbon Communications (NASDAQ:RBBN)

Key Points

• Rosenblatt Securities has reiterated a buy rating for Ribbon Communications (NASDAQ:RBBN) with a price target of $6.00, indicating a potential upside of 51.90% from its current trading price.
• Ribbon Communications displayed a positive revenue growth of 14.5% year-over-year, reporting $220.58 million for the quarter, which exceeded analyst expectations.
• Recently, several institutional investors have increased their stake in Ribbon Communications, with hedge funds owning approximately 70.92% of the company's stock following significant acquisitions.

Ribbon Communications (NASDAQ:RBBN - Get Free Report)'s stock had its "buy" rating reissued by investment analysts at Rosenblatt Securities in a report released on Thursday,Benzinga reports. They currently have a $6.00 price target on the communications equipment provider's stock. Rosenblatt Securities' target price suggests a potential upside of 51.90% from the company's current price.

Separately, Wall Street Zen upgraded Ribbon Communications from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. Four equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Ribbon Communications has a consensus rating of "Buy" and an average price target of $6.00.

Ribbon Communications Trading Down 2.5%

Shares of NASDAQ RBBN opened at $3.95 on Thursday. The company has a market cap of $699.47 million, a price-to-earnings ratio of -15.80 and a beta of 1.39. Ribbon Communications has a 12-month low of $2.84 and a 12-month high of $5.38. The company has a current ratio of 1.38, a quick ratio of 1.13 and a debt-to-equity ratio of 0.88. The stock's 50 day simple moving average is $3.95 and its 200 day simple moving average is $3.84.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The communications equipment provider reported $0.05 EPS for the quarter, meeting the consensus estimate of $0.05. Ribbon Communications had a positive return on equity of 7.08% and a negative net margin of 5.14%.The firm had revenue of $220.58 million for the quarter, compared to analysts' expectations of $213.31 million. During the same period last year, the firm earned $0.05 EPS. The firm's revenue was up 14.5% compared to the same quarter last year. Ribbon Communications has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities research analysts expect that Ribbon Communications will post 0.18 EPS for the current year.

Insider Buying and Selling at Ribbon Communications

In other news, Director Beatriz V. Infante sold 8,690 shares of the firm's stock in a transaction 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 sale, the director directly owned 343,224 shares of the company's stock, valued at $1,366,031.52. This trade represents a 2.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Dan Redington sold 14,176 shares of the firm's stock in a transaction on Monday, September 8th. The stock was sold at an average price of $4.02, for a total value of $56,987.52. The disclosure for this sale can be found here. Over the last three months, insiders have sold 198,300 shares of company stock valued at $801,173. Corporate insiders own 1.72% of the company's stock.

Institutional Trading of Ribbon Communications

Hedge funds and other institutional investors have recently modified their holdings of 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 valued at $40,000 after purchasing an additional 8,213 shares during the last quarter. Ballentine Partners LLC acquired a new stake in Ribbon Communications during the second quarter valued at $44,000. Keel Point LLC acquired a new stake in Ribbon Communications during the second quarter valued at $45,000. Prudential Financial Inc. acquired a new stake in Ribbon Communications during the second quarter valued at $47,000. Finally, Occudo Quantitative Strategies LP acquired a new stake in Ribbon Communications during the second quarter valued at $50,000. Institutional investors and hedge funds own 70.92% of the company's stock.

About Ribbon Communications

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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