Fidelity Management & Research Co.. recently announced the acquisition of new stake in Ciena Corporation (NYSE:CIEN). The institutional investor has increased its shareholding in the Technology company by 295.14% to 6.18 million shares with purchase of 4.62 million shares. This fresh investment now brings its stake to 4.02% valued currently at $367.89 million. In addition, Norges Bank Investment Management raised its holdings by 2.08 million to 3.84 million shares. And SSgA Funds Management, Inc. has lifted its position by 1.13% or 42623.0 shares – to 3.83 million shares.
With over 2.88 million Ciena Corporation (CIEN) shares trading Tuesday and a closing price of $57.09 on the day, the dollar volume was approximately $164.42 million. The shares have shown a negative weekly performance of -3.37% and its price on 08/25/20 lost nearly -4.21%. Currently, there are 153.86M common shares owned by the public and among those 152.59M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 19 analysts who have offered their price forecasts for CIEN have a consensus price objective of $61.39. The analysts have set the share’s price value over the next 12 months at a high of $73.00 and a low of $50.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Ciena Corporation stock is 1.90 for the next 12 months. The average price target is 6.85% above its last price level and an upside to the estimated low will see the stock lose -14.18% over that period. But an upside of 21.79% will see the stock hit the forecast high price target while mean target price for the stock is $62.50.
Insiders at the company have transacted a total of 343 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 27 of these insider trades were purchases, accounting for 491,967 shares. Insider sales of the common stock occurred on 316 occasions, with total insider shares sold totaling 738,628 shares.
The top 3 mutual fund holders in Ciena Corporation are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Government Pension Fund – Global. Vanguard Total Stock Market Index owns 4.36 million shares of the company’s stock, all valued at over $259.69 million. The company sold 17533.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. iShares Core S&P Mid Cap ETF sold 21638.0 shares to see its total holdings shrink to 4.07 million shares valued at over $242.4 million and representing 2.65% of the shares outstanding. Government Pension Fund – Global bought 2.08 million shares to bring its total holdings to over 3.84 million shares at a value of $228.46 million. Government Pension Fund – Global now owns shares totaling to 2.50% of the shares outstanding.
Shares of Ciena Corporation (NYSE: CIEN) opened at $59.41, down -$0.19 from a prior closing price of $59.60. However, the script later closed the day at $57.09, down -4.21%. The company’s stock has a 5-day price change of -3.37% and 2.74% over the past three months. CIEN shares are trading 33.73% year to date (YTD), with the 12-month market performance up to 41.49% higher. It has a 12-month low price of $30.58 and touched a high of $61.51 over the same period. Currently, 2.88 million shares have been traded, compared to an average intraday trading volume of 1.81 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.63%, 0.92%, and 22.87% respectively.
Institutional ownership of Ciena Corporation (NYSE: CIEN) shares accounts for 92.50% of the company’s 153.86M shares outstanding. Mutual fund holders own 40.70%, while other institutional holders and individual stakeholders account for 52.80% and 2.13% respectively.
It has a market capitalization of $8.77B and a beta (3y monthly) value of 0.83. The stock’s trailing 12-month PE ratio is 27.78, while the earnings-per-share (ttm) stands at $2.06. The company has a PEG of 1.20 and a Quick Ratio of 2.80 with the debt-to-equity ratio at 0.34. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.29% over the week and 2.08% over the month.
Analysts forecast that Ciena Corporation (CIEN) will achieve an EPS of $0.82 for the current quarter, $0.8 for the next quarter and $3.18 for 2021. The lowest estimate earnings-per-share for the quarter is $0.77 while analysts give the company a high EPS estimate of $0.88. Comparatively, EPS for the current quarter was $0.71 a year ago. Earnings per share for the fiscal year are expected to increase by 80.40%, and 9.68% over the next financial year. EPS should shrink at an annualized rate of 23.20% over the next five years, compared to 44.00% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 19 brokerage firm advisors rate Ciena Corporation (CIEN) as a “Strong Buy” at a consensus score of 1.90. Specifically, 14 Wall Street analysts polled rate the stock as a buy, while 4 of the 19 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the CIEN, a number of firms have released research notes about the stock. Wolfe Research stated their Outperform rating for the stock in a research note on July 24, 2020, with the firm’s price target at. Needham coverage for the Ciena Corporation (CIEN) stock in a research note released on July 21, 2020 offered a Buy rating with a price target of $65. Northland Capital was of a view on June 04, 2020 that the stock is Market Perform, while B. Riley FBR gave the stock Neutral rating on May 13, 2020, issuing a price target of $54- $51. Morgan Stanley on their part issued Equal-Weight rating on April 16, 2020.