Ciena Stock Story


USD 55.63  0.46  0.83%   

Ciena Corp is scheduled to announce its earnings tomorrow. The next financial report is expected on the 2nd of June 2022. As many millenniums are getting excited about technology space, it is only fair to outline the feasibility of shorting Ciena Corp. We will evaluate if Ciena Corp shares are reasonably priced given the latest economic outlook.
Published over two months ago
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Our latest take on Ciena (NYSE:CIEN) analyst consensus

Ciena Corp is UNDERVALUED at 65.32 per share with modest projections ahead.
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.
What is the right price you would pay to acquire a share of Ciena Corp? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
Please read more on our stock advisor page.

What is happening with Ciena Corp this year

Annual and quarterly reports issued by Ciena Corp are formal financial statements that are published yearly and quarterly and sent to Ciena stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Ciena Corp often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How does Ciena utilize its cash?

To perform a cash flow analysis of Ciena Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Ciena Corp is receiving and how much cash it distributes out in a given period. The Ciena Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Ciena Corp Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 397.47 Million

Sale by Gary Smith of 3542 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 Gary Smith, President CEO, on 10th of August 2022. This event was filed by Ciena Corp with SEC on 2022-08-10. Statement of changes in beneficial ownership - SEC Form 4. Gary Smith currently serves as president, chief executive officer, director 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?

Earning per share calculations of the firm is based on official Zacks consensus of 5 analysts regarding Ciena Corp's future annual earnings. Given the historical accuracy of 95.66%, the future earnings per share of the company is estimated to be 2.66 with the lowest and highest values of 2.48 and 2.87, respectively. Please note that this consensus of annual earnings estimates for Ciena Corp is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Ciena a risky opportunity?

Let's check the volatility. Ciena is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Ciena (NYSE:CIEN) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. picking up a share of a Ciena Corp stock makes you a part-owner of that company.

Ciena Corp Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Ciena Corp. The Ciena consensus assessment is calculated by taking the average estimates from all of the analysts covering Ciena Corp

Strong Buy
Strong Buy545.45
Strong Sell00.0

Ciena may start a reversion in July

The risk adjusted performance is down to -0.19 as of today. Ciena Corp exhibits very low volatility with skewness of -0.53 and kurtosis of 1.64. However, we advise investors to further study Ciena Corp technical indicators to make sure all market info is available and is reliable. 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.

Ciena Corp Implied Volatility

Ciena Corp's implied volatility exposes the market's sentiment of Ciena Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Ciena Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Ciena Corp stock will not fluctuate a lot when Ciena Corp's options are near their expiration.

Our Final Take On Ciena Corp

Whereas some firms within the communication equipment industry are still a little expensive, even after the recent corrections, Ciena Corp may offer a potential longer-term growth to institutional investors. To sum up, as of the 1st of June 2022, our primary 90 days buy-or-sell advice on the company is Hold. We believe Ciena Corp is undervalued with low odds of financial turmoil for the next two years.

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 Vlad Skutelnik 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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