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 equities research analysts at Rosenblatt Securities in a note issued to investors on Thursday,Benzinga reports. They currently have a $6.00 price objective on the communications equipment provider's stock. Rosenblatt Securities' target price would indicate a potential upside of 56.86% from the stock's previous close.

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

Ribbon Communications Stock Down 1.9%

Ribbon Communications stock traded down $0.08 during trading hours on Thursday, hitting $3.83. The company had a trading volume of 269,573 shares, compared to its average volume of 560,101. The firm has a market capitalization of $677.33 million, a P/E ratio of -15.30 and a beta of 1.39. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.38 and a quick ratio of 1.13. The firm's fifty day moving average is $3.93 and its 200-day moving average is $3.81. Ribbon Communications has a fifty-two week low of $2.91 and a fifty-two week high of $5.38.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) last released its quarterly earnings data on Wednesday, July 23rd. The communications equipment provider reported $0.05 earnings per share for the quarter, meeting the consensus estimate of $0.05. The firm had revenue of $220.58 million for the quarter, compared to analyst estimates of $213.31 million. Ribbon Communications had a negative net margin of 5.14% and a positive return on equity of 7.08%. The company's revenue for the quarter was up 14.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.05 EPS. Ribbon Communications has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, research analysts forecast that Ribbon Communications will post 0.18 earnings per share for the current year.

Insider Transactions at Ribbon Communications

In other Ribbon Communications news, Director Beatriz V. Infante sold 8,690 shares of the business's stock in a transaction dated Friday, September 5th. The shares were 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 of the company's stock, valued at approximately $1,366,031.52. The trade was 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 hyperlink. Also, EVP Dan Redington sold 155,434 shares of the stock in a transaction that occurred on 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 directly owned 14,176 shares in the company, valued at $57,129.28. This trade represents a 91.64% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 198,300 shares of company stock valued at $801,173 over the last ninety days. 2.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in shares of Ribbon Communications by 0.7% in the 1st quarter. Vanguard Group Inc. now owns 7,457,467 shares of the communications equipment provider's stock valued at $29,233,000 after buying an additional 55,394 shares during the period. Royce & Associates LP lifted its stake 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 acquiring an additional 289,210 shares during the period. Geode Capital Management LLC lifted its stake 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 acquiring an additional 169,402 shares during the period. Connor Clark & Lunn Investment Management Ltd. lifted its stake in shares of Ribbon Communications by 24.1% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,476,053 shares of the communications equipment provider's stock valued at $5,919,000 after acquiring an additional 286,803 shares during the period. Finally, First Eagle Investment Management LLC grew its position in shares of Ribbon Communications by 16.5% during the 2nd quarter. First Eagle Investment Management LLC now owns 1,025,914 shares of the communications equipment provider's stock worth $4,114,000 after buying an additional 145,159 shares during the period. 70.92% of the stock is currently owned by institutional investors.

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.