Ciena Corporation (NYSE:CIEN) shares traded lower over the last trading session, losing -2.29% on 12/10/20. The shares fell to a low of $43.63 before closing at $46.10. Intraday shares traded counted 5.76 million, which was -203.03% lower than its 30-day average trading volume of 1.90M. CIEN’s previous close was $47.18 while the outstanding shares total 154.18M. The firm has a beta of 0.82, a 12-month trailing P/E ratio of 19.10, and a growth ratio of 2.15. The stock’s Relative Strength Index (RSI) is 58.55, with weekly volatility at 3.62% and ATR at 1.40. The CIEN stock’s 52-week price range has touched low of $30.58 and a $61.51 high.
Investors have identified the Communication Equipment company Ciena Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $7.04 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Ciena Corporation (CIEN) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For CIEN, the company has in raw cash 1.09 billion on their books with 6.93 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 2.57 billion total, with 720.49 million as their total liabilities.
CIEN were able to record 245.03 million as free cash flow during the Q4 2020 quarter of the year, this saw their quarterly net cash flow reduce by 189.65 million. In cash movements, the company had a total of 306.36 million as operating cash flow.
Potential earnings growth for Ciena Corporation (CIEN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q4 2020 quarter of the year, Ciena Corporation recorded a total of 976.71 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 1.65% coming in sequential stages and their sales for the Q4 2020 quarter increasing by 8.46%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 512.03 million trying to sell their products during the last quarter, with the result yielding a gross income of 464.68 million. This allows shareholders to hold on to 154.18M with the recently reported earning now reading 0.92 cents per share. This is a figure that compared to analyst’s prediction for their Q4 2020 (0.98 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.37 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CIEN sounds very interesting.
Is the stock of CIEN attractive?
In related news, SVP, Networking Platforms, McFeely Scott sold 900 shares of the company’s stock in a transaction that recorded on Dec 01. The sale was performed at an average price of 45.08, for a total value of 40,572. As the sale deal closes, the SVP Finance, CFO, MOYLAN JAMES E JR now sold 2,000 shares of the company’s stock, valued at 89,020. Also, President, CEO, SMITH GARY B sold 1,200 shares of the company’s stock in a deal that was recorded on Nov 24. The shares were price at an average price of 44.02 per share, with a total market value of 52,830. Following this completion of acquisition, the Sr. VP, General Counsel, Rothenstein David M now holds 2,500 shares of the company’s stock, valued at 109,400. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.10%.
13 out of 19 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Ciena Corporation. 0 analysts has assigned a Sell rating on the CIEN stock. The 12-month mean consensus price target for the company’s shares has been set at $52.47.