It’s an appealing income play to consider Ciena Corporation (CIEN)

The price of Ciena Corporation (NYSE: CIEN) closed at 41.04 in the last session, up 0.74% from day before closing price of $40.74. In other words, the price has increased by $+0.30 from its previous closing price. On the day, 2080340 shares were traded. CIEN reached its highest trading level at $41.31 during the session, while it also had its lowest trading level at $40.49.

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Ratios:

We take a closer look at CIEN’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 5.19 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 273.69. For the most recent quarter (mrq), Quick Ratio is recorded 2.60 and its Current Ratio is at 3.50. In the meantime, Its Debt-to-Equity ratio is 0.40 whereas as Long-Term Debt/Eq ratio is at 0.40.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, JP Morgan on September 06, 2022, Downgraded its rating to Neutral and sets its target price to $45 from $62 previously.

On August 12, 2022, Morgan Stanley Upgraded its rating to Overweight which previously was Equal-Weight and also upped its target price recommendation from $56 to $65.

On August 04, 2022, MKM Partners started tracking the stock assigning a Buy rating and target price of $62.MKM Partners initiated its Buy rating on August 04, 2022, with a $62 target price.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Sep 21 when Phipps Jason sold 2,249 shares for $40.79 per share. The transaction valued at 91,737 led to the insider holds 75,050 shares of the business.

HAMILTON RICK sold 2,540 shares of CIEN for $103,607 on Sep 21. The SVP, Software and Services now owns 64,247 shares after completing the transaction at $40.79 per share. On Sep 19, another insider, SMITH GARY B, who serves as the President, CEO of the company, sold 3,542 shares for $41.35 each. As a result, the insider received 146,450 and left with 406,627 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, CIEN now has a Market Capitalization of 6.08B and an Enterprise Value of 6.03B. As of this moment, Ciena’s Price-to-Earnings (P/E) ratio for their current fiscal year is 32.11, and their Forward P/E ratio for the next fiscal year is 15.96. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 4.52. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.66 while its Price-to-Book (P/B) ratio in mrq is 2.31. Its current Enterprise Value per Revenue stands at 1.63 whereas that against EBITDA is 14.18.

Stock Price History:

The Beta on a monthly basis for CIEN is 0.93, which has changed by -21.11% over the last 52 weeks, in comparison to a change of -15.65% over the same period for the S&P500. Over the past 52 weeks, CIEN has reached a high of $78.28, while it has fallen to a 52-week low of $40.17. The 50-Day Moving Average of the stock is 49.19, while the 200-Day Moving Average is calculated to be 57.15.

Shares Statistics:

According to the various share statistics, CIEN traded on average about 1.51M shares per day over the past 3-months and 2.09M shares per day over the past 10 days. A total of 149.86M shares are outstanding, with a floating share count of 146.81M. Insiders hold about 1.20% of the company’s shares, while institutions hold 94.70% stake in the company. Shares short for CIEN as of Aug 30, 2022 were 3.79M with a Short Ratio of 2.51, compared to 3.69M on Jul 28, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.56% and a Short% of Float of 2.88%.

Earnings Estimates

The company has 17 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.08 for the current quarter, with a high estimate of $0.13 and a low estimate of $0.05, while EPS last year was $0.85. The consensus estimate for the next quarter is $0.28, with high estimates of $0.68 and low estimates of $0.12.

Analysts are recommending an EPS of between $1.52 and $1.34 for the fiscal current year, implying an average EPS of $1.38. EPS for the following year is $2.57, with 18 analysts recommending between $3.05 and $1.83.

Revenue Estimates

According to 14 analysts, the current quarter’s revenue is expected to be $848.86M. It ranges from a high estimate of $868M to a low estimate of $836.49M. As of the current estimate, Ciena Corporation’s year-ago sales were $1.04B, an estimated decrease of -18.50% from the year-ago figure.

A total of 17 analysts have provided revenue estimates for CIEN’s current fiscal year. The highest revenue estimate was $3.53B, while the lowest revenue estimate was $3.37B, resulting in an average revenue estimate of $3.5B. In the same quarter a year ago, actual revenue was $3.62B, down -3.30% from the average estimate. Based on 17 analysts’ estimates, the company’s revenue will be $4.09B in the next fiscal year. The high estimate is $4.28B and the low estimate is $3.89B. The average revenue growth estimate for next year is up 16.70% from the average revenue estimate for this year.