Ciena Stock Story

CIEN -  USA Stock  

USD 58.29  0.46  0.80%

It seems Ciena Corp will continue to recover much faster as its share price surged up 7.30% today. This firm current daily volatility is 2.26 percent, with a beta of 0.38 and an alpha of 0.0 over DOW. While some millenniums are indifferent towards electronic equipment, it makes sense to outline Ciena Corp. Why are we still confident in our projection for a recovery.
Published over two months ago
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Should you buy Ciena after the latest volatility slide?
Ciena Corp currently holds roughly 1.18 B in cash with 446.57 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 7.62.
On a scale of 0 to 100, Ciena Corp holds a performance score of 9. The firm shows a Beta (market volatility) of 0.3807, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Ciena's beta means in this case. As returns on the market increase, Ciena Corp returns are expected to increase less than the market. However, during the bear market, the loss on holding Ciena Corp will be expected to be smaller as well. Although it is vital to follow Ciena Corp historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Ciena Corp technical indicators, you can presently evaluate if the expected return of 0.29% will be sustainable into the future. Please makes use of Ciena Corp coefficient of variation, potential upside, rate of daily change, as well as the relationship between the sortino ratio and skewness to make a quick decision on whether Ciena Corp price patterns will revert.
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 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 James Moylan of 2000 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 James Moylan, SVP Finance CFO, on 23rd of July 2021. This event was filed by Ciena Corp with SEC on 2021-07-23. Statement of changes in beneficial ownership - SEC Form 4. James Moylan currently serves as chief financial officer, senior vice president 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?

Ciena Corp appears to be very steady, given 3 months investment horizon. Ciena Corp secures Sharpe Ratio (or Efficiency) of 0.13, which signifies that the company had 0.13% of return per unit of standard deviation over the last 3 months. 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-seven technical indicators for Ciena Corp, which you can use to evaluate the future volatility of the firm. Please makes use of Ciena Corp's mean deviation of 1.58, and Risk Adjusted Performance of 0.0264 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Over 3 percent rise for Ciena Corp. What does it mean for institutional investors?

The value at risk is down to -3.34 as of today. Ciena Corp currently demonstrates below-average downside deviation. It has Information Ratio of -0.04 and Jensen Alpha of 0.0. However, we advise investors to further question Ciena Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. 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 Takeaway on Ciena Corp Investment

Whereas few other entities under the communication equipment industry are still a bit expensive, Ciena Corp may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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.

Editorial Staff

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 Achuva Shats 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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