TD Cowen Lowers Ciena (NYSE:CIEN) Price Target to $575.00

Key Points

• TD Cowen lowered Ciena’s price target from $675 to $575 while maintaining a “buy” rating, implying about 40% upside from the stock’s $409.70 closing price.
• Ciena shares fell 8% to $409.70, despite the company reporting quarterly earnings of $1.64 per share and revenue of $1.57 billion, both above analyst expectations. Revenue increased 39.5% year over year.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $525; institutional investors own nearly 92% of the company’s shares.

Ciena (NYSE:CIEN - Get Free Report) had its target price dropped by stock analysts at TD Cowen from $675.00 to $575.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the communications equipment provider's stock. TD Cowen's target price suggests a potential upside of 40.34% from the stock's current price.

Several other research analysts have also commented on the stock. Citigroup raised their price objective on shares of Ciena from $345.00 to $658.00 and gave the company a "buy" rating in a research note on Monday, May 18th. Northland Securities set a $450.00 target price on shares of Ciena in a research note on Friday, June 5th. Zacks Research lowered shares of Ciena from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. UBS Group reissued a "buy" rating on shares of Ciena in a research report on Tuesday, July 28th. Finally, Weiss Ratings upgraded shares of Ciena from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, August 11th. Thirteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $525.00.

Ciena Trading Down 8.0%

NYSE CIEN traded down $35.48 on Tuesday, reaching $409.70. The stock had a trading volume of 511,878 shares, compared to its average volume of 2,934,946. The company has a quick ratio of 2.11, a current ratio of 2.73 and a debt-to-equity ratio of 0.53. The stock has a fifty day moving average price of $424.05 and a two-hundred day moving average price of $428.37. Ciena has a 12-month low of $84.41 and a 12-month high of $637.51. The firm has a market capitalization of $57.99 billion, a price-to-earnings ratio of 137.26 and a beta of 1.30.

Ciena (NYSE:CIEN - Get Free Report) last released its quarterly earnings results on Thursday, June 4th. The communications equipment provider reported $1.64 EPS for the quarter, topping the consensus estimate of $1.46 by $0.18. The business had revenue of $1.57 billion during the quarter, compared to analyst estimates of $1.50 billion. Ciena had a return on equity of 18.15% and a net margin of 7.87%.The company's quarterly revenue was up 39.5% on a year-over-year basis. During the same period last year, the business posted $0.42 earnings per share. As a group, sell-side analysts forecast that Ciena will post 5.4 EPS for the current fiscal year.

Insider Transactions at Ciena

In other Ciena news, SVP Joseph Cumello sold 1,586 shares of the firm's stock in a transaction on Friday, June 26th. The stock was sold at an average price of $466.33, for a total value of $739,599.38. Following the sale, the senior vice president directly owned 42,872 shares in the company, valued at $19,992,499.76. This trade represents a 3.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jason Phipps sold 2,629 shares of Ciena stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $466.20, for a total value of $1,225,639.80. Following the sale, the senior vice president directly owned 62,382 shares of the company's stock, valued at $29,082,488.40. This trade represents a 4.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 17,475 shares of company stock valued at $8,164,824 over the last quarter. Insiders own 0.58% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of CIEN. Elyxium Wealth LLC purchased a new stake in Ciena in the fourth quarter valued at $2,747,810,000. State Street Corp lifted its holdings in shares of Ciena by 17.2% in the 4th quarter. State Street Corp now owns 5,102,409 shares of the communications equipment provider's stock valued at $1,193,300,000 after purchasing an additional 750,128 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of Ciena by 53.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,051,625 shares of the communications equipment provider's stock valued at $947,554,000 after purchasing an additional 1,404,132 shares during the period. Bank of America Corp DE boosted its position in shares of Ciena by 10.4% in the 2nd quarter. Bank of America Corp DE now owns 3,495,795 shares of the communications equipment provider's stock valued at $284,313,000 after purchasing an additional 329,821 shares during the period. Finally, Corient Private Wealth LLC grew its stake in Ciena by 30,114.5% during the 4th quarter. Corient Private Wealth LLC now owns 2,870,677 shares of the communications equipment provider's stock worth $671,365,000 after buying an additional 2,861,176 shares during the last quarter. Institutional investors and hedge funds own 91.99% of the company's stock.

Ciena Company Profile

Ciena Corporation NYSE: CIEN is a global supplier of telecommunications networking equipment, software and services. The company develops high-capacity optical transport systems and packet-optical platforms that enable service providers, cloud operators and large enterprises to build, manage and scale their networks. Ciena's product portfolio includes coherent optical solutions, packet networking platforms and a suite of network automation software designed to optimize bandwidth, reduce latency and simplify network operations.

In addition to hardware offerings, Ciena provides professional services and support, including network design, implementation and ongoing maintenance.

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