Ciena Corporation (NYSE: CIEN) stock jumped 0.56% on Friday to $52.49 against a previous-day closing price of $52.20. With 1.03 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.5 million shares. During the session, the Communication Equipment company that operates in wider Technology sector, reached to the highest price of $52.60 whereas the lowest price it dropped to was $52.11. The 52-week range on CIEN shows that it touched its highest point at $78.28 and its lowest point at $41.63 during that stretch. It currently has a 1-year price target of $67.42. Beta for the stock currently stands at 0.92.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CIEN was up-trending over the past week, with a rise of 2.48%, but this was up by 14.23% over a month. Three-month performance dropped to -8.63% while six-month performance fell -21.00%. The stock lost -7.83% in the past year, while it has lost -31.80% so far this year. A look at the trailing 12-month EPS for CIEN yields 2.73 with Next year EPS estimates of 3.21. For the next quarter, that number is 0.34. This implies an EPS growth rate of 37.80% for this year and 58.57% for next year. EPS is expected to grow by 7.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 44.10%.
Float and Shares Shorts:
At present, 152.20 million CIEN shares are outstanding with a float of 148.35 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.73 million, which was 2.49% higher than short shares on Jun 14, 2022. In addition to Dr. Patrick H. Nettles as the firm’s Exec. Chairman, Mr. Gary B. Smith serves as its CEO, Pres & Director.
Through their ownership of 94.32% of CIEN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.99% of CIEN, in contrast to 41.68% held by mutual funds. Shares owned by individuals account for 2.23%. As the largest shareholder in CIEN with 9.46% of the stake, The Vanguard Group, Inc. holds 14,164,415 shares worth 14,164,415. A second-largest stockholder of CIEN, BlackRock Fund Advisors, holds 12,349,325 shares, controlling over 8.25% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in CIEN, holding 8,789,279 shares or 5.87% stake. With a 3.00% stake in CIEN, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,494,820 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.93% of CIEN stock, is the second-largest Mutual Fund holder. It holds 4,385,254 shares valued at 200.41 million. Vanguard Small Cap Index Fund holds 2.57% of the stake in CIEN, owning 3,843,104 shares worth 175.63 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CIEN since 19 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CIEN analysts setting a high price target of $88.00 and a low target of $51.00, the average target price over the next 12 months is $65.88. Based on these targets, CIEN could surge 67.65% to reach the target high and fall by -2.84% to reach the target low. Reaching the average price target will result in a growth of 25.51% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CIEN will report FY 2022 earnings on 12/08/2022. Analysts have provided yearly estimates in a range of $2.22 being high and $1.77 being low. For CIEN, this leads to a yearly average estimate of $2.02. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ciena Corporation surprised analysts by -$0.04 when it reported $0.50 EPS against a consensus estimate of $0.54. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.40 and the low estimate is $0.26. The average estimate for the next quarter is thus $0.34.
Summary of Insider Activity:
Insiders traded CIEN stock several times over the past three months with 0 Buys and 48 Sells. In these transactions, 0 shares were bought while 66,539 shares were sold. The number of buy transactions has increased to 35 while that of sell transactions has risen to 243 over the past year. The total number of shares bought during that period was 622,458 while 737,308 shares were sold.