On August 20, 2023, Federated Hermes Inc. revealed in its recent disclosure with the Securities and Exchange Commission (SEC) that it has decreased its holdings in Ciena Co. (NYSE:CIEN) by 17.5% during the first quarter. The institutional investor now owns 18,543 shares of the communications equipment provider’s stock, having sold 3,927 shares during the quarter. As of its most recent SEC filing, the value of Federated Hermes Inc.’s holdings in Ciena amounts to $974,000.
Ciena reported its quarterly earnings data on June 6th, revealing earnings per share of $0.74 for the quarter. This surpassed analysts’ consensus estimates of $0.61 by $0.13 per share. The company demonstrated a net margin of 5.02% and a return on equity of 9.31%. Additionally, Ciena generated revenue of $1.13 billion for the quarter, exceeding analysts’ expectations of $1.09 billion. Compared to the same quarter in the previous year, the business experienced a notable increase in revenue by 19.3%. Analysts predict that Ciena Co.’s earnings per share for this year will be around 1.9.
Ciena has been subject to various research analyst reports, shedding light on its performance and potential outlook for investors. Barclays reduced their target price on CIEN shares from $74 to $66, while Northland Securities lowered theirs from $45 to $41 on June 7th. On June 16th, Bank of America also lowered their target price from $62 to $59 in their report regarding CIEN shares. Raymond James set a “strong-buy” rating on CIEN stock and adjusted their target price from $70 to $63 on June 7th as well.
Furthermore, Rosenblatt Securities contributed to the discussion surrounding Ciena by reducing their price target on CIEN shares from $65 to $57 in their research report published on June 7th. The stock has been rated by various analysts, with a moderate consensus rating of “Moderate Buy” according to Bloomberg. On average, analysts have set a price target of $63.63 for CIEN.
These reports and evaluations provide investors with valuable insights into Ciena’s performance in the market and its potential prospects moving forward. While Federated Hermes Inc. decreased its position in Ciena during the first quarter, it remains to be seen how the company will continue to navigate the ever-evolving communications equipment industry in the future.
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Investor Activity and Stock Performance Analysis of Ciena Corporation (CIEN)
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”CIEN” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]In recent news, Ciena Corporation (CIEN) has seen several large investors either increase or decrease their holdings in the company. Belpointe Asset Management LLC acquired a new position in Ciena during the fourth quarter of last year, valued at approximately $33,000. Similarly, Global Retirement Partners LLC witnessed a 39.4% rise in its stake in CIEN during the first quarter. They now own 2,238 shares of the company’s stock worth $99,000 after purchasing an additional 632 shares. Another investor, Mendota Financial Group LLC, entered the scene during the first quarter as well by acquiring a new position in Ciena worth $111,000.
State of Wyoming also made a move by increasing its holdings in CIEN by 35.4% during the fourth quarter of last year. The state now owns 2,450 shares of Ciena’s stock valued at $125,000 after purchasing an additional 640 shares. Lastly, CENTRAL TRUST Co was able to boost their holdings by a significant 74.7% during the third quarter and now owns 3,274 shares worth $133,000 after buying an extra 1,400 shares. These numbers demonstrate that hedge funds and institutional investors currently possess 91.15% of CIEN’s stock.
Meanwhile, SVP Scott Mcfeely parted with some of his shares recently when he sold 2,000 shares on August 15th for an average price of $41.76 per share (a total value of $83,520). He now holds a direct ownership interest of 90,892 shares valued at $3,795,649.
In addition to Mr. Mcfeely’s sale transactions mentioned above and disclosed through an SEC filing available on their website; CEO Gary B. Smith also sold some CIEN stocks – specifically 4,166 shares – on that very same day, achieving an average price per share of $41.92 and a total transaction value of $174,638.72. Following this sale, Mr. Smith retains ownership of 436,941 shares worth $18,316,566.
It is noteworthy to mention that over the last ninety days, insiders have seen significant activity in terms of stock sales with a total of 32,541 shares sold amounting to $1,375,010 in value. Consequently, insiders currently hold 0.99% of CIEN’s outstanding stock.
As for its stock performance on Friday (August 20th), CIEN opened at $41.25 per share. The company boasts a quick ratio of 2.62 and a current ratio of 3.66 – indicating its ability to meet short-term obligations efficiently using its liquid assets. Furthermore, CIEN has maintained a prudent debt-to-equity ratio of 0.53 – demonstrating responsible capital structure management.
Looking at the company’s market performance over the past year reveals that it has experienced both highs and lows – reaching a low of $38.33 and a high of $55.96 during this period. With a market capitalization currently standing at approximately $6.17 billion and a price-to-earnings (P/E) ratio of 30.56 – which suggests that investors are willing to pay more for each dollar earned by the company – Ciena Corporation is poised for continued growth in the industry.
Moreover, investors should take note that the P/E-growth (PEG) ratio stands at 1.44 indicating that investors are optimistic about Ciena’s future prospects as they are valuing each unit of earnings growth positively in relation to its current stock price level.
Lastly, it should be mentioned that CIEN exhibits a beta coefficient of 0.97 which indicates lesser volatility compared to the broader market index as represented by a benchmark value of one.
In conclusion, Ciena Corporation has been attracting the attention of investors, both large and smaller stakeholders. With recent trades by insiders and movements by institutional investors, it is clear that the stock is experiencing fluctuations. As the company continues to navigate through its financial landscape, shareholders will eagerly await further developments and announcements that could impact its value in the market.
