David M. Rothenstein, Senior Vice President and Chief Technique Officer at Ciena Corp (NYSE:), has lately offered a portion of his holdings within the firm. In keeping with a latest SEC submitting, Rothenstein offered 3,500 shares of widespread inventory on November 15 at a price of $68.99 per share. This transaction amounted to a complete worth of $241,464.
Following this sale, Rothenstein retains possession of 196,497 shares, which embody unvested Restricted Inventory Items (RSUs) and Efficiency Inventory Items (PSUs). The sale was performed underneath a Rule 10b5-1 buying and selling plan established on September 22, 2023, permitting for pre-scheduled inventory transactions.
Ciena Corp, headquartered in Hanover, Maryland, is a distinguished participant within the telecommunications business, specializing in community technique and know-how options.
In different latest information, CIENA Company reported sturdy fiscal third-quarter efficiency with revenues reaching $942 million and adjusted earnings per share at $0.35, regardless of a year-over-year decline in income. The corporate additionally introduced a brand new share repurchase initiative, authorizing the buyback of up to $1 billion of its widespread inventory, set to begin in fiscal yr 2025 and prolong by way of the tip of fiscal yr 2027. On the analysts’ entrance, Morgan Stanley (NYSE:) downgraded CIENA inventory from Chubby to Equalweight, citing warning concerning the firm’s development prospects. Equally, Evercore ISI adjusted its score for CIENA from Outperform to In Line, expressing issues over short-term AI income expectations. Stifel, then again, maintained a constructive outlook with a Purchase score, whereas JPMorgan downgraded the corporate’s inventory from ‘Chubby’ to ‘Impartial’. Citi upgraded the corporate’s inventory from ‘Impartial’ to ‘Purchase’, highlighting easing stock challenges and potential development in fiscal yr 2025. Within the midst of those developments, CIENA introduced the upcoming retirement of CFO Jim Moylan, with a seek for his successor at present underway. These are the latest developments which have unfolded for CIENA Company.
InvestingPro Insights
As David M. Rothenstein reduces his stake in Ciena Corp (NYSE:CIEN), traders could discover worth in analyzing the corporate’s present monetary place and market efficiency. In keeping with InvestingPro information, Ciena boasts a market capitalization of $9.68 billion, reflecting its important presence within the telecommunications business.
Regardless of Rothenstein’s latest sale, Ciena’s inventory has proven sturdy momentum. The corporate has delivered a formidable 36.29% price complete return over the previous six months, and a strong 47.92% return year-to-date. This efficiency aligns with an InvestingPro Tip indicating that Ciena has skilled a “Strong return over the last three months.”
Nonetheless, traders ought to observe that Ciena is at present buying and selling at a excessive earnings a number of, with a P/E ratio of 70.59. This valuation metric means that the market has excessive expectations for the corporate’s future development, which can clarify why insiders like Rothenstein may select to appreciate some positive aspects.
It is value noting that Ciena’s income for the final twelve months stood at $4.02 billion, with a gross revenue margin of 43.43%. Whereas these figures reveal the corporate’s substantial market presence, an InvestingPro Tip cautions that analysts anticipate a gross sales decline within the present yr.
For these looking for a extra complete analysis, InvestingPro presents 12 extra recommendations on Ciena, offering deeper insights into the corporate’s monetary well being and market place.
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