Ciena Corporation (NYSE:CIEN) closed Thursday at $41.04 per share, up from $40.74 a day earlier. While Ciena Corporation has overperformed by 0.74%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, CIEN fell by -19.37%, with highs and lows ranging from $78.28 to $40.17, whereas the simple moving average fell by -28.32% in the last 200 days.
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On September 06, 2022, JP Morgan Downgraded Ciena Corporation (NYSE: CIEN) to Neutral. A report published by Morgan Stanley on August 12, 2022, Upgraded its rating to ‘Overweight’ for CIEN. MKM Partners also rated CIEN shares as ‘Buy’, setting a target price of $62 on the company’s shares in an initiating report dated August 04, 2022. B. Riley Securities June 03, 2022d the rating to Buy on June 03, 2022, and set its price target from $65 to $67. UBS initiated its ‘Neutral’ rating for CIEN, as published in its report on April 05, 2022. Rosenblatt’s report from March 24, 2022 suggests a price prediction of $80 for CIEN shares, giving the stock a ‘Buy’ rating. Loop Capital also rated the stock as ‘Buy’.
Analysis of Ciena Corporation (CIEN)
Further, the quarter-over-quarter decrease in sales is -12.20%, showing a negative trend in the upcoming months.
There are several well-rounded types of analysis and research techniques that can be used to gain a clear view of Ciena Corporation’s future performance, with equity being one of the most critical indicators. The goal here is to ensure that your current return on equity of 7.00% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 2.60, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
As an indicator of volatility for any stock, average volume can also be very valuable, and CIEN is recording an average volume of 1.51M. On a monthly basis, the volatility of the stock is set at 3.06%, whereas on a weekly basis, it is put at 2.23%, with a loss of -2.75% over the past seven days. Furthermore, long-term investors anticipate a median target price of $59.62, showing growth from the present price of $41.04, which can serve as yet another indication of whether CIEN is worth investing in or should be passed over.
How Do You Analyze Ciena Corporation Shares?
Ciena Corporation (CIEN) is based in the USA and is one of the most prominent companies operating in the Communication Equipment market. When comparing Ciena Corporation shares with other companies under Technology, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 32.11, there is a growth in quarterly earnings of -95.40%.
Apart from looking at the fundamentals, you should also pay attention to the number of company employees who own shares. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 1.20%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 94.70% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in CIEN shares?
The recent increase in stakes in CIEN appears to be a result of several institutional investors and hedge funds increasing their positions. The Vanguard Group, Inc.’s position in CIEN has increased by 1.30% in the first quarter. The company now owns 14,348,221 shares of the stock, with a value of $728.03 million, following the purchase of 183,806 additional shares during the last quarter. BlackRock Fund Advisors made another increased to its shares in CIEN during the first quarter, upping its stake by 0.32%. During the last quarter, the company dropped down 39,410 additional shares for a total stake of worth $628.6 million, bringing number of shares owned by the company to 12,388,735.
During the first quarter, Fidelity Management & Research Co subtracted a -192,508 position in CIEN. AllianceBernstein LP sold an additional -0.34 million shares in the last quarter, decreasing its holdings by -6.49%, now holding 4.91 million shares worth $249.26 million. At the end of the first quarter, SSgA Funds Management, Inc. decreased its CIEN holdings by -2.00% and now holds 4.13 million CIEN shares valued at $209.77 million with the lessened 84155.0 shares during the period. CIEN shares are owned by institutional investors to the tune of 94.70% at present.