Why are Institutional Investors Interested in Buying Ribbon Communications Inc. (RBBN)?

Ribbon Communications Inc. (NASDAQ: RBBN) is 50.00% higher on its value in year-to-date trading and has touched a low of $1.95 and a high of $5.93 in the current 52-week trading range. The RBBN stock was last observed hovering at around $4.75 in the last trading session, with the day’s loss setting it -0.1%.

Currently trading at $4.65, the stock is 10.41% and 11.08% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 1.34 million and changing -2.11% at the moment leaves the stock 33.36% off its SMA200. RBBN registered -13.25% loss for a year compared to 6-month gain of 56.04%. The firm has a 50-day simple moving average (SMA 50) of $4.1554 and a 200-day simple moving average (SMA200) of $3.4845.

The stock witnessed a 12.05% loss in the last 1 month and extending the period to 3 months gives it a 29.17%, and is 5.44% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 9.99% over the week and 5.97% over the month.

Ribbon Communications Inc. (RBBN) has around 2209 employees, a market worth around $674.67M and $602.20M in sales. Fwd P/E is 10.57. Profit margin for the company is -22.00%. Distance from 52-week low is 138.46% and -21.59% from its 52-week high. The company has generated returns on investments over the last 12 months (-23.10%).

Ribbon Communications Inc. (RBBN) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Ribbon Communications Inc. (RBBN) is a “Overweight”. 2 analysts offering their recommendations for the stock have an average rating of 2.50, where 1 rate it as a Hold and 0 think it is a “Overweight”. 1 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

Ribbon Communications Inc. quarterly earnings per share for the current quarter are estimated at $0.07 with sales reaching $231.26M over the same period.The EPS is expected to shrink by -60.40% this year, but quarterly earnings will post 54.90% year-over-year. Quarterly sales are estimated to grow 68.00% in year-over-year returns.

Ribbon Communications Inc. (RBBN) Top Institutional Holders

163 institutions hold shares in Ribbon Communications Inc. (RBBN), with 28.16M shares held by insiders accounting for 19.51% while institutional investors hold 78.23% of the company’s shares. The shares outstanding are 120.99M, and float is at 116.07M with Short Float at 2.32%. Institutions hold 62.97% of the Float.

The top institutional shareholder in the company is JP Morgan Chase & Company with over 49.95 million shares valued at $151.35 million. The investor’s holdings represent 34.50% of the RBBN Shares outstanding. As of Jun 29, 2020, the second largest holder is Paradigm Capital Management with 7.36 million shares valued at $28.92 million to account for 5.08% of the shares outstanding. The other top investors are Blackrock Inc. which holds 4.3 million shares representing 2.97% and valued at over $13.02 million, while Dimensional Fund Advisors LP holds 2.73% of the shares totaling 3.96 million with a market value of $11.99 million.

Ribbon Communications Inc. (RBBN) Insider Activity

A total of 47 insider transactions have happened at Ribbon Communications Inc. (RBBN) in the last six months, with sales accounting for 16 and purchases happening 31 times. The most recent transaction is an insider sale by Riley Kevin W., the company’s EVP and CTO. SEC filings show that Riley Kevin W. sold 4,596 shares of the company’s common stock on Jun 17 at a price of $3.92 per share for a total of $18029.0. Following the sale, the insider now owns 0.21 million shares.

Ribbon Communications Inc. disclosed in a document filed with the SEC on Jun 17 that Scarfo Anthony (EVP and GM, Cloud & Edge) sold a total of 9,014 shares of the company’s common stock. The trade occurred on Jun 17 and was made at $3.92 per share for $35357.0. Following the transaction, the insider now directly holds 86719.0 shares of the RBBN stock.

Still, SEC filings show that on Jun 17, Raiford Daryl (EVP & CFO) disposed off 6,692 shares at an average price of $3.92 for $26227.0. The insider now directly holds 207,480 shares of Ribbon Communications Inc. (RBBN).

Ribbon Communications Inc. (RBBN): Who are the competitors?

The company’s main competitors (and peers) include Infinera Corporation (INFN) that is trading 125.57% up over the past 12 months. Juniper Networks Inc. (JNPR) is 1.90% up on the 1-year trading charts. Short interest in the company’s stock has risen 35.32% from the last report on Jun 14, 2020 to stand at a total of 1.74 million short shares sold with a short interest ratio of 5.98.