Gary Smith, President and Chief Executive Officer of Ciena Corp (CIEN, Financial), has sold 4,166 shares of the company on March 15, 2024, according to a recent SEC Filing. This transaction is part of a series of sales by the insider over the past year, totaling 149,375 shares sold and no shares purchased.
Ciena Corp is a networking systems, services, and software company, providing solutions that enable a wide range of network operators to deploy and manage complex networks. These solutions are designed to support the increasing demand for network bandwidth and performance, driven by the growth of data and video traffic.
Over the past year, there have been no insider buys of Ciena Corp shares. However, there have been 49 insider sells in the same period, indicating a trend of insider sales.
On the valuation front, Ciena Corp shares were trading at $49.84 on the day of the insider's recent sale, giving the company a market cap of $7.220 billion. The price-earnings ratio stands at 32.43, which is above both the industry median of 23.895 and the company's historical median price-earnings ratio.
The stock's price-to-GF-Value ratio is 0.83, with a GF Value of $60.04, suggesting that Ciena Corp is modestly undervalued according to GuruFocus's intrinsic value estimate.
The GF Value is determined by considering historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on the company's past returns and growth, and future business performance estimates from Morningstar analysts.
Investors and analysts often monitor insider transactions as they can provide insights into a company's internal perspective on its financial health and future prospects. The consistent selling by the insider may be of interest to current and potential shareholders.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
