Ciena’s strategy chief sells $172,200 in common stock

Published 26/03/2025, 18:24
Ciena’s strategy chief sells $172,200 in common stock

David M. Rothenstein, the Senior Vice President and Chief Strategy Officer at Ciena Corp (NYSE:CIEN), has sold 2,500 shares of the company’s common stock. The transaction, which occurred on March 24, 2025, was carried out under a Rule 10b5-1 trading plan, a pre-arranged trading strategy that allows insiders to sell a predetermined number of shares at a specified time. The sale comes as Ciena, currently valued at $9.5 billion, trades at a P/E ratio of 121.5x, suggesting a premium valuation according to InvestingPro data.

The shares were sold at a weighted average price of $68.88, with the sale prices ranging from $67.93 to $69.63. This transaction totaled $172,200. Following the sale, Rothenstein holds 207,370 shares, which include unvested Restricted Stock Units (RSUs) and Performance Stock Units (PSUs). The company maintains strong liquidity with a current ratio of 3.65x and operates with moderate debt levels. Get access to 10+ additional key insights about Ciena with InvestingPro.

The sales were executed as part of a broader strategy and are designed to comply with insider trading regulations. The company’s next earnings report is scheduled for June 5, 2025, with analysts expecting profit growth this year.

In other recent news, CIENA’s first-quarter financial performance has drawn significant attention from analysts and investors alike. The company reported revenue of $1.07 billion, exceeding both UBS’s estimate of $1.06 billion and consensus expectations. Earnings per share also surpassed projections, coming in at $0.64 compared to an anticipated $0.44. Despite these strong results, UBS adjusted its price target for CIENA to $73 from $85, maintaining a Neutral rating due to non-recurring items affecting gross margins.

Stifel maintained a Buy rating with a $95 price target, citing strong order momentum from cloud service providers and communication service providers. Northland upgraded CIENA from Market Perform to Outperform, setting a new price target of $75, based on robust first-quarter orders and a 14% increase in service provider revenues. Needham also maintained a Buy rating but reduced the price target to $90, acknowledging CIENA’s strong quarterly performance while noting one-time gains in gross margins.

Morgan Stanley (NYSE:MS) lowered its price target to $76 from $80, maintaining an Equalweight rating, while recognizing the company’s solid quarterly results and growth in service provider demand. The cautious stance reflects concerns about potential gross margin volatility and tariff uncertainties. These recent developments underscore CIENA’s current market position and the varied analyst perspectives on its future growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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