Zacks Research Issues Optimistic Forecast for Ciena Earnings

Key Points

• Zacks Research has increased its FY2025 EPS estimate for Ciena Corporation from $1.25 to $1.43, maintaining a "Strong-Buy" rating on the stock.
• Barclays raised its price target for Ciena from $102.00 to $138.00, alongside several other investment firms adjusting their price objectives for the stock.
• Institutional investors have significantly increased their stakes in Ciena, with notable increases from Orion Portfolio Solutions and Advisory Services Network, highlighting strong institutional support.

Ciena Corporation (NYSE:CIEN - Free Report) - Investment analysts at Zacks Research boosted their FY2025 EPS estimates for shares of Ciena in a research report issued to clients and investors on Tuesday, September 23rd. Zacks Research analyst Team now anticipates that the communications equipment provider will post earnings of $1.43 per share for the year, up from their prior forecast of $1.25. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Ciena's current full-year earnings is $1.60 per share. Zacks Research also issued estimates for Ciena's Q4 2025 earnings at $0.43 EPS, Q1 2026 earnings at $0.44 EPS, Q2 2026 earnings at $0.62 EPS, Q3 2026 earnings at $0.81 EPS, Q4 2026 earnings at $0.98 EPS, FY2026 earnings at $2.86 EPS, Q1 2027 earnings at $0.68 EPS, Q2 2027 earnings at $0.76 EPS, Q3 2027 earnings at $1.09 EPS and FY2027 earnings at $3.67 EPS.

Several other analysts have also commented on CIEN. Barclays increased their price objective on Ciena from $102.00 to $138.00 and gave the company an "overweight" rating in a report on Friday, September 5th. Northland Securities set a $100.00 target price on Ciena in a research report on Monday, June 30th. Evercore ISI raised their price target on Ciena from $95.00 to $120.00 and gave the stock an "in-line" rating in a report on Thursday, September 4th. Bank of America boosted their price target on Ciena from $135.00 to $155.00 and gave the stock a "buy" rating in a research note on Wednesday, September 17th. Finally, Morgan Stanley upped their price objective on shares of Ciena from $70.00 to $100.00 and gave the company an "underweight" rating in a report on Friday, September 5th. Three investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Ciena presently has an average rating of "Moderate Buy" and a consensus price target of $119.46.

Ciena Price Performance

Shares of CIEN opened at $137.32 on Friday. The company has a 50 day moving average of $104.25 and a two-hundred day moving average of $82.85. The company has a quick ratio of 2.52, a current ratio of 3.28 and a debt-to-equity ratio of 0.55. Ciena has a twelve month low of $49.21 and a twelve month high of $141.43. The company has a market cap of $19.37 billion, a price-to-earnings ratio of 141.57, a price-to-earnings-growth ratio of 2.00 and a beta of 1.16.

Institutional Trading of Ciena

Large investors have recently made changes to their positions in the business. Orion Porfolio Solutions LLC raised its stake in shares of Ciena by 15.7% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 21,839 shares of the communications equipment provider's stock valued at $1,776,000 after buying an additional 2,971 shares during the last quarter. Marex Group plc acquired a new stake in Ciena during the second quarter worth about $434,000. Advisory Services Network LLC grew its holdings in Ciena by 58.1% during the second quarter. Advisory Services Network LLC now owns 14,610 shares of the communications equipment provider's stock worth $1,188,000 after acquiring an additional 5,369 shares during the period. Caxton Associates LLP raised its position in Ciena by 301.0% during the second quarter. Caxton Associates LLP now owns 250,000 shares of the communications equipment provider's stock valued at $20,332,000 after acquiring an additional 187,658 shares in the last quarter. Finally, State of Tennessee Department of Treasury lifted its holdings in Ciena by 5.7% in the second quarter. State of Tennessee Department of Treasury now owns 57,457 shares of the communications equipment provider's stock valued at $4,673,000 after acquiring an additional 3,112 shares during the period. 91.99% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, SVP Jason Phipps sold 2,325 shares of the stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $80.50, for a total value of $187,162.50. Following the transaction, the senior vice president owned 84,833 shares in the company, valued at approximately $6,829,056.50. This represents a 2.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Brodie Gage sold 350 shares of the firm's stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $132.00, for a total transaction of $46,200.00. Following the transaction, the senior vice president directly owned 42,918 shares of the company's stock, valued at $5,665,176. This represents a 0.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 37,725 shares of company stock valued at $3,602,291. Company insiders own 0.93% of the company's stock.

Ciena Company Profile

Ciena Corporation provides hardware and software services for delivery of video, data, and voice traffic metro, aggregation, and access communications network worldwide. The company's Networking Platforms segment offers convergence of coherent optical transport, open optical networking, optical transport network switching, IP routing, and switching services.

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