Ciena Corp. Rocketing Higher (CIEN)
On Thursday morning before the opening bell, Ciena Corp. (NASDAQ: CIEN) reported a wider than expected loss, missing Wall Street estimates. The stock gapped significantly lower, but surged to the upside throughout the day. Today, the stock gapped higher, and then blew through the levels it had been trading at prior to reporting the disappointing earnings figures. After that, it was basically off to the races for this name. Ciena (CIEN) has gained an incredible 14.46% and is currently trading at $16.00, which is around a $1.50 higher than before the company reported their quarterly numbers.
The only news out in the stock is that J.P. Morgan lowered their 2010 estimates by 17 cents per share to -$0.27. The bank maintained their Market Perform rating. Credit Suisse, on the other hand, came out and reiterated their Outperform rating and $19 price target on the shares. The Credit Suisse note was definitely a positive, but considering the poor earnings, this move kind of leaves you scratching your head. This is not a big company ($1.46 billion market cap), and I think that the action today is more than likely a result of some big hedge funds moving into the stock. The huge move in CIEN after Thursday's gap lower seems very significant and very bullish. It seems to be a likely indication that the smart money is moving into CIEN after the sell off, and doing it in a major way. If you are looking for a technology trade, I would do my homework on Ciena (CIEN).
Ciena Corporation is a provider of communications networking equipment, software and services that support the transport, switching, aggregation and management of voice, video, and data traffic.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: Intraday Update Markets Movers