Ciena Story

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CIEN -- USA Stock  

USD 54.88  1.99  3.50%

It seems Ciena Corp may not recover as fast as we have hopped for as its price went down 1.9% today. The company current daily volatility is 1.8 percent, with a beta of 0.22 and an alpha of 0.19 over DOW. While many traders are getting carried away by overanalyzing market volatility, it is reasonable to outline Ciena Corp based on how it reacts to the latest economic swings. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Are Ciena Corp (NYSE:CIEN) institutional investors starting to panic?
Ciena Corp currently holds roughly 1.24 B in cash with 493.65 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.02.
Our investment recommendation tool can be used to complement Ciena Corp trade advice provided by experts. It analyzes the company's potential to grow against your specific risk preferences and investment horizon.
Investing in Ciena Corp, 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 Corp 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.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Ciena Corp's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Ciena Corp in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Ciena Corp. Your research has to be compared to or analyzed against Ciena Corp's peers to derive any actionable benefits. When done correctly, Ciena Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Ciena Corp.

How important is Ciena Corp's Liquidity

Ciena Corp financial leverage refers to using borrowed capital as a funding source to finance Ciena Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ciena Corp 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 Corp'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 Corp, but it might be worth checking our own buy vs. sell analysis

Ciena Corp 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 Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Ciena Corp 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 David Rothenstein of 3000 shares of Ciena Corp

Legal trades by Ciena Corp 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 David Rothenstein, Sr. VP General Counsel, on 16th of April 2021. This event was filed by Ciena Corp with SEC on 2021-04-16. Statement of changes in beneficial ownership - SEC Form 4. David Rothenstein currently serves as senior vice president, general counsel, secretary of Ciena Corp [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.

What is driving Ciena Corp Investor Appetite?

We consider Ciena Corp very steady. Ciena Corp secures Sharpe Ratio (or Efficiency) of 0.0756, which signifies that the company had 0.0756% of return per unit of standard deviation over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Ciena Corp, which you can use to evaluate future volatility of the firm. Please confirm Ciena Corp mean deviation of 1.34, and Risk Adjusted Performance of 0.0996 to double-check if the risk estimate we provide is consistent with the expected return of 0.14%.
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0.820.640.690.92
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0.820.40.380.78
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0.640.40.670.47
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0.690.380.670.63
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0.920.780.470.63
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Ciena institutional investors exit after the slide?

Downside variance is down to 3.56. It may entail a possible volatility slide. Ciena Corp has relatively low volatility with skewness of -0.02 and kurtosis of 0.26. However, we advise all investors to independently investigate Ciena Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ciena Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ciena Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Ciena Corp

Whereas some other entities under the communication equipment industry are still a bit expensive, Ciena Corp may offer a potential longer-term growth to institutional investors. With an optimistic outlook on your 30 days horizon, it may be a good time to purchase new shares of Ciena or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ciena Corp.

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 Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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