Mutual of America Reduces Stake in Ciena Corporation by 7.6%

Mutual of America Capital Management LLC has reduced its stake in Ciena Corporation (NYSE: CIEN) by 7.6% in the third quarter of 2023. The firm now holds 65,288 shares of the communications equipment provider after selling 5,401 shares during this period, with a total value of approximately $9.51 million at the end of September.

Other institutional investors have similarly adjusted their holdings in Ciena. Global Retirement Partners LLC increased its stake by 11.1%, acquiring a total of 698 shares, valued at $102,000. Nisa Investment Advisors LLC also grew its position by 1.3%, now owning 6,475 shares worth $943,000. Additionally, GAMMA Investing LLC and Fifth Third Wealth Advisors LLC both increased their holdings by 2.3% during the same quarter. Hedge funds and institutional investors collectively own about 91.99% of Ciena’s stock.

Ciena’s stock opened at $232.13 on Tuesday, reflecting a 1.3% increase. Over the past year, shares have fluctuated between a low of $49.21 and a high of $261.13. The company has a market capitalization of $32.70 billion and a P/E ratio of 273.09.

On December 11, 2023, Ciena announced its quarterly earnings, reporting $0.91 earnings per share, surpassing analysts’ expectations of $0.76 by $0.15. The company’s revenue reached $1.35 billion, exceeding predictions of $1.29 billion and demonstrating a year-over-year growth of 20.1%. The firm reported a net margin of 2.59% and a return on equity of 8.38%.

In related developments, Ciena’s Director, Patrick Gallagher, sold 11,618 shares on January 12, 2024, for a total of approximately $2.64 million. Following this transaction, Gallagher holds 50,184 shares valued at around $11.41 million. Additionally, Senior Vice President Joseph Cumello sold 11,929 shares on the same day for about $2.74 million, reducing his holdings to 49,475 shares.

Wall Street analysts have expressed varying opinions on Ciena’s stock. On October 13, BNP Paribas Exane set a price target of $185.00 with an “outperform” rating. Barclays raised their target from $138.00 to $279.00, classifying the stock as “overweight.” Zacks Research upgraded Ciena from “hold” to “strong-buy,” reflecting a generally positive outlook.

Ciena Corporation operates as a global supplier of telecommunications networking equipment, software, and services. The company focuses on high-capacity optical transport systems and packet-optical platforms, catering to service providers and large enterprises. Its product range includes coherent optical solutions and network automation software aimed at optimizing bandwidth and simplifying network operations.

As Ciena continues to adapt to market changes, investor interest remains high, with expectations for further growth in upcoming quarters.