Ribbon Communications Inc. (NASDAQ:RBBN) has a beta of 1.09, a 12-month trailing P/E ratio of 19.47, and a growth ratio of 1.62. The stock’s Relative Strength Index (RSI) is 60.97, with weekly volatility at 2.54% and ATR at 0.23. The RBBN stock’s 52-week price range has touched low of $3.61 and a $11.25 high. Its shares traded lower over the last trading session, losing -0.98% on 06/17/21. The shares fell to a low of $7.97 before closing at $8.06. Intraday shares traded counted 0.44 million, which was 7.79% higher than its 30-day average trading volume of 477.16K. RBBN’s previous close was $8.14 while the outstanding shares total 145.94M.
Investors have identified the Telecom Services company Ribbon Communications Inc. 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 $1.16 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.
Ribbon Communications Inc. (RBBN) 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 RBBN, the company has in raw cash 108.89 million on their books with 20.06 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 396.92 million total, with 296.52 million as their total liabilities.
RBBN were able to record -11.57 million as free cash flow during the 08/04/2021 quarter of the year, this saw their quarterly net cash flow reduce by -26.81 million. In cash movements, the company had a total of -6.21 million as operating cash flow.
Potential earnings growth for Ribbon Communications Inc. (RBBN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/04/2021 quarter of the year, Ribbon Communications Inc. recorded a total of 192.77 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 18.05% coming in sequential stages and their sales for the 08/04/2021 quarter reducing by -26.68%.
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 82.22 million trying to sell their products during the last quarter, with the result yielding a gross income of 110.55 million. This allows shareholders to hold on to 145.94M with the recently reported earning now reading -0.31 cents per share. This is a figure that compared to analyst’s prediction for their 08/04/2021 (0.00 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.48 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 RBBN sounds very interesting.
Is the stock of RBBN attractive?
In related news, EVP and CFO, LOPEZ MIGUEL A bought 100 shares of the company’s stock in a transaction that recorded on May 04. The purchase was performed at an average price of 6.43, for a total value of 643. As the purchase deal closes, the EVP and CFO, LOPEZ MIGUEL A now bought 900 shares of the company’s stock, valued at 5,920. Also, EVP and CFO, LOPEZ MIGUEL A bought 500 shares of the company’s stock in a deal that was recorded on Mar 25. The shares were cost at an average price of 7.86 per share, with a total market value of 3,930. Following this completion of disposal, the EVP & GM, IP Optical Networks, Bucci Sam now holds 10,000 shares of the company’s stock, valued at 85,944. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.10%.
2 out of 4 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Ribbon Communications Inc.. 0 analysts has assigned a Sell rating on the RBBN stock. The 12-month mean consensus price target for the company’s shares has been set at $12.17.