Ciena Corporation (NYSE: CIEN) CEO Gary Smith sold 6,800 shares of the company’s stock on December 22, 2023. The transaction took place at an average price of $233.46, resulting in a total value of $1,587,528. Following this sale, Smith retains ownership of 391,437 shares, valued at approximately $91.38 million, marking a decrease of 1.71% in his stake. This transaction was reported in a filing with the Securities and Exchange Commission (SEC).
On the same day, Ciena’s stock experienced a decline of 2.0%, closing at $236.85. During trading, the company saw 625,706 shares exchanged, significantly lower than its average trading volume of 2,523,202. Over the past year, Ciena has fluctuated between a low of $49.21 and a high of $248.00. The company’s market capitalization stands at $33.36 billion, with a price-to-earnings ratio of 279.14.
Ciena’s recent earnings report, announced on December 11, indicated a positive performance, with earnings per share (EPS) of $0.91, surpassing analysts’ estimates of $0.76 by $0.15. The firm reported revenues of $1.35 billion, exceeding the consensus estimate of $1.29 billion. This represents a year-over-year revenue increase of 20.1%, compared to the same quarter last year when the company posted an EPS of $0.54.
Analyst Ratings and Market Outlook
Investment analysts have shared varying perspectives on Ciena’s stock. A report from B. Riley reiterated a “neutral” rating on December 12, while Zacks Research upgraded its stance from “hold” to “strong buy” on December 23. Needham & Company LLC has set a new price target of $280.00 for Ciena, reflecting a “buy” rating in their report released on December 11. Similarly, Citigroup also raised its price target to $280.00 with a “buy” recommendation.
Overall, two analysts have awarded Ciena a “strong buy” rating, while eleven have assigned a “buy” rating, and seven have opted for “hold”. According to data from MarketBeat.com, Ciena currently holds a consensus rating of “moderate buy” with a target price of $237.50.
Ciena’s Business Profile
Ciena Corporation is a leading global supplier of telecommunications networking equipment, software, and services. The company specializes in high-capacity optical transport systems and packet-optical platforms, catering to service providers, cloud operators, and large enterprises. Ciena’s offerings include coherent optical solutions, packet networking platforms, and a range of network automation software designed to enhance bandwidth efficiency and simplify network operations.
In addition to its hardware solutions, Ciena provides professional services including network design, implementation, and maintenance support. As the demand for advanced networking solutions continues to rise, Ciena is well-positioned to capitalize on growth opportunities in the telecommunications sector.
