Ribbon Communications Inc. (NASDAQ:RBBN) experienced a significant decline in its share price, reaching a new 52-week low of $2.94 during trading on Friday. The stock closed slightly higher at $3.0350, with a trading volume of 178,060 shares. This dip followed a prior close of $3.04.
Analyst Ratings and Market Sentiment
Recent evaluations from various research firms have influenced investor sentiment regarding Ribbon Communications. On October 8, 2023, Weiss Ratings maintained a “sell (D-)” rating for the company. Adding to the negative outlook, Wall Street Zen downgraded the stock from a “buy” rating to a “hold” rating on October 25, 2023. Conversely, Rosenblatt Securities affirmed a “buy” rating with a target price of $6.00 for Ribbon Communications in a note released on October 23, 2023.
Currently, four investment analysts have rated the stock as a buy, while one has issued a sell rating. According to data from MarketBeat.com, the consensus rating for Ribbon Communications is “Moderate Buy,” with a target price of $6.00.
Recent Financial Performance
Ribbon Communications released its quarterly earnings on March 27, 2023. The company reported earnings of $0.01 per share for the quarter, with a revenue of $100.28 million. The firm noted a return on equity of 6.49% but faced challenges with a net margin of -4.96%. Analysts project that Ribbon Communications will achieve earnings of $0.18 per share for the current fiscal year.
Insider trading activity has also garnered attention. On September 5, 2023, executive vice president Dan Redington sold 155,434 shares at an average price of $4.03, totaling about $626,399.02. Following this transaction, Redington retained 14,176 shares, valued at approximately $57,129.28. This sale represented a 91.64% reduction in his ownership of the stock.
In a separate transaction on the same day, director Beatriz V. Infante sold 8,690 shares at an average price of $3.98, amounting to $34,586.20. Infante now owns 343,224 shares, valued at around $1,366,031.52, marking a 2.47% decrease in ownership. In total, insiders sold 198,300 shares valued at $801,173 last quarter, representing 1.72% of the company’s stock.
Institutional Investments
Recent shifts in institutional ownership have also impacted Ribbon Communications. The State of Alaska Department of Revenue acquired a new stake in the company valued at $29,000 during the third quarter. Tower Research Capital LLC increased its position in Ribbon Communications by 453.3% in the second quarter, now holding 10,025 shares worth around $40,000 after purchasing an additional 8,213 shares.
Other notable transactions include Schonfeld Strategic Advisors LLC, which acquired a stake valued at approximately $41,000, and Ballentine Partners LLC, which purchased shares worth about $44,000. Currently, 70.92% of Ribbon Communications stock is owned by hedge funds and institutional investors.
Ribbon Communications operates globally, providing communications technology across the United States, Europe, the Middle East, Africa, and the Asia Pacific. The company functions through two segments: Cloud and Edge, and IP Optical Networks, offering solutions for voice over internet protocol (VoIP), voice over long-term evolution (VoLTE), and unified communications.
As Ribbon Communications navigates these turbulent waters, investors will be closely watching how the company adapts to market conditions and analyst recommendations moving forward.
