Zacks Investment Research Lowers Infinera (INFN) to Sell

Zacks Investment Research cut shares of Infinera (NASDAQ:INFN) from a hold rating to a sell rating in a research report report published on Tuesday.

According to Zacks, “Infinera provides Digital Optical Networking systems to telecommunications carriers, cable operators and other service providers worldwide. Infinera’s large-scale photonic integrated circuit incorporates hundred Gigabits per second of transmit and receive capacity and the functionality of more than sixty discrete optical components into a pair of indium phosphide chips. Infinera’s DTN system and PIC technology are designed to provide optical networks that provide operating simplicity, enhanced revenue generation, faster time-to-service and capital cost savings. “

Several other research firms have also commented on INFN. Northland Securities set a $7.00 target price on Infinera and gave the company a hold rating in a research note on Thursday, December 20th. Needham & Company LLC dropped their target price on Infinera from $14.00 to $9.00 and set a strong-buy rating for the company in a research note on Wednesday, November 7th. Nomura reiterated a neutral rating and issued a $6.00 target price (down from $12.00) on shares of Infinera in a research note on Wednesday, November 7th. Morgan Stanley set a $10.00 price target on Infinera and gave the stock a buy rating in a research note on Wednesday, September 26th. Finally, Jefferies Financial Group upgraded Infinera from an underperform rating to a hold rating in a research note on Friday, November 9th. Three analysts have rated the stock with a sell rating, thirteen have issued a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the company. Infinera presently has an average rating of Hold and a consensus price target of $8.80.

INFN traded down $0.02 during trading on Tuesday, reaching $4.34. 41,888 shares of the stock were exchanged, compared to its average volume of 2,366,439. The company has a debt-to-equity ratio of 0.37, a quick ratio of 2.95 and a current ratio of 3.92. The company has a market cap of $757.69 million, a price-to-earnings ratio of -5.24 and a beta of 0.53. Infinera has a 1 year low of $3.54 and a 1 year high of $12.39.

Infinera (NASDAQ:INFN) last released its quarterly earnings results on Tuesday, November 6th. The communications equipment provider reported ($0.04) earnings per share for the quarter, hitting the Zacks’ consensus estimate of ($0.04). Infinera had a negative return on equity of 11.58% and a negative net margin of 19.18%. The company had revenue of $200.41 million during the quarter, compared to analysts’ expectations of $210.57 million. During the same period in the previous year, the firm posted ($0.11) earnings per share. The business’s revenue for the quarter was up 4.1% compared to the same quarter last year. On average, analysts predict that Infinera will post -0.69 EPS for the current fiscal year.

In other Infinera news, COO David W. Heard purchased 20,000 shares of Infinera stock in a transaction that occurred on Friday, November 9th. The stock was purchased at an average price of $4.74 per share, with a total value of $94,800.00. Following the completion of the acquisition, the chief operating officer now owns 44,532 shares of the company’s stock, valued at approximately $211,081.68. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Thomas J. Fallon purchased 50,000 shares of Infinera stock in a transaction that occurred on Friday, November 9th. The stock was acquired at an average cost of $4.63 per share, with a total value of $231,500.00. The disclosure for this purchase can be found here. Insiders purchased 150,000 shares of company stock valued at $675,900 in the last three months. 3.00% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. FMR LLC lifted its holdings in Infinera by 3.3% during the 3rd quarter. FMR LLC now owns 23,100,000 shares of the communications equipment provider’s stock worth $168,630,000 after buying an additional 742,901 shares during the last quarter. Vanguard Group Inc. lifted its holdings in Infinera by 6.9% during the 3rd quarter. Vanguard Group Inc. now owns 14,318,728 shares of the communications equipment provider’s stock worth $104,526,000 after buying an additional 918,279 shares during the last quarter. Vanguard Group Inc lifted its holdings in Infinera by 6.9% during the 3rd quarter. Vanguard Group Inc now owns 14,318,728 shares of the communications equipment provider’s stock worth $104,526,000 after buying an additional 918,279 shares during the last quarter. Bank of New York Mellon Corp lifted its holdings in Infinera by 10.1% during the 2nd quarter. Bank of New York Mellon Corp now owns 13,804,996 shares of the communications equipment provider’s stock worth $137,084,000 after buying an additional 1,265,072 shares during the last quarter. Finally, BlackRock Inc. lifted its holdings in Infinera by 12.5% during the 2nd quarter. BlackRock Inc. now owns 10,961,436 shares of the communications equipment provider’s stock worth $108,849,000 after buying an additional 1,222,230 shares during the last quarter. 75.24% of the stock is owned by hedge funds and other institutional investors.

About Infinera

Infinera Corporation provides optical transport networking solutions, equipment, and software and services worldwide. The company's product portfolio consists of Infinera DTN-X Family of terabit-class transport network platforms, including the XTC Series, XTS Series, and XT Series; Infinera DTN-X XTC series multi-terabit packet optical transport platforms that integrate digital OTN switching and optical WDM transmission; and Infinera DTN-X XT series for terrestrial applications and XTS series for subsea applications.

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