Ciena Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>CIE</div>
CIEN -- USA Stock  

USD 39.78  0.46  1.17%

It seems Ciena may not have a good chance to recover from the latest slide as its shares fell again. The company's current daily volatility is 3.58 percent, with a beta of 0.52 and an alpha of 0.03 over DOW. As many millenniums are trying to avoid the latest volatility, we are going to outline Ciena a little further to understand its historical price patterns. Why are we still confident in our projection for a recovery.
Published over three weeks ago
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How risky is Ciena after the latest volatility rise?
Ciena currently holds roughly 988.47 M in cash with 454.06 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.43. Ciena advice module can be used to check and cross-verify current investment recommendation provided by analysts analyzing the company's potential to grow using all of fundamental, technical, data market data available at the time.
Investing in Ciena, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Ciena along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Ciena's Liquidity

Ciena financial leverage refers to using borrowed capital as a funding source to finance Ciena ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ciena financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Ciena's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Ciena, but it might be worth checking our own buy vs. sell analysis

Ciena Correlation with Peers

Investors in Ciena can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Ciena. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Ciena and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Ciena is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Ciena for more details

Sale by Jason Phipps of 1826 shares of Ciena

Legal trades by Ciena insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Ciena insider trading alert for sale of common stock by Jason Phipps, SVP Global Sales and Marketing, on 23rd of September 2020. This event was filed by Ciena Corp with SEC on 2020-09-23. Statement of changes in beneficial ownership - SEC Form 4. Jason Phipps currently serves as senior vice president - global sales and marketing of Ciena [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Ciena Indicators

Ciena secures Sharpe Ratio (or Efficiency) of -0.0573, which signifies that the company had -0.0573% of return per unit of standard deviation over the last month. Macroaxis philosophy in foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Ciena exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Ciena risk adjusted performance of 0.102, and Mean Deviation of 1.34 to double-check the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Is Ciena slide permanent?

The standard deviation is down to 1.9 as of today. Ciena has relatively low volatility with skewness of -0.09 and kurtosis of 2.02. However, we advise all investors to independently investigate Ciena to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Bottom Line On Ciena

Whereas some firms in the communication equipment industry are either recovering or due for a correction, Ciena may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 3rd of September 2020, we believe that at this point, Ciena is overvalued with low odds of financial turmoil within the next 2 years. Our concluding buy-or-sell advice on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Ciena. Please refer to our Terms of Use for any information regarding our disclosure principles.

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