Ribbon Communications (NASDAQ:RBBN) Shares Gap Up After Better-Than-Expected Earnings

Ribbon Communications Inc. (NASDAQ:RBBN) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $4.33, but opened at $4.69. Ribbon Communications shares last traded at $4.68, with a volume of 1,129,776 shares trading hands.

The communications equipment provider reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.01. Ribbon Communications had a negative net margin of 6.62% and a positive return on equity of 5.41%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on RBBN shares. Northland Securities upped their target price on shares of Ribbon Communications from $5.50 to $6.00 and gave the stock an “outperform” rating in a report on Thursday, December 19th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $5.50 target price on shares of Ribbon Communications in a report on Monday, December 30th. Finally, JMP Securities reaffirmed a “market outperform” rating and issued a $6.00 target price on shares of Ribbon Communications in a report on Thursday. Five equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $6.00.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in RBBN. AQR Capital Management LLC acquired a new position in Ribbon Communications during the 2nd quarter worth about $137,000. Sanctuary Advisors LLC acquired a new position in Ribbon Communications during the 2nd quarter valued at about $132,000. SG Americas Securities LLC lifted its position in Ribbon Communications by 81.3% during the 3rd quarter. SG Americas Securities LLC now owns 34,793 shares of the communications equipment provider’s stock valued at $113,000 after purchasing an additional 15,604 shares during the period. Assenagon Asset Management S.A. lifted its position in Ribbon Communications by 19.1% during the 3rd quarter. Assenagon Asset Management S.A. now owns 129,984 shares of the communications equipment provider’s stock valued at $422,000 after purchasing an additional 20,826 shares during the period. Finally, Victory Capital Management Inc. lifted its position in Ribbon Communications by 59.4% during the 3rd quarter. Victory Capital Management Inc. now owns 504,503 shares of the communications equipment provider’s stock valued at $1,640,000 after purchasing an additional 188,077 shares during the period. Institutional investors and hedge funds own 70.92% of the company’s stock.

Ribbon Communications Trading Up 15.5 %

The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.16 and a current ratio of 1.42. The company has a market capitalization of $876.92 million, a price-to-earnings ratio of -15.62 and a beta of 1.11. The business’s 50-day simple moving average is $4.07 and its 200-day simple moving average is $3.63.

Ribbon Communications Company Profile

Ribbon Communications Inc provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, Cloud and Edge, and IP Optical Networks. The Cloud and Edge segment provides software and hardware products, solutions, and services for voice over internet protocol communications, voice over long-term evolution, and voice over 5G communications, and unified communications and collaboration.