Short Interest in Brocade Communications Systems Inc. (BRCD) Rises By 55.2%
Brocade Communications Systems Inc. (NASDAQ:BRCD) was the target of a large increase in short interest in September. As of September 15th, there was short interest totalling 14,231,629 shares, an increase of 55.2% from the August 31st total of 9,167,161 shares. Based on an average trading volume of 6,126,561 shares, the days-to-cover ratio is currently 2.3 days. Approximately 3.1% of the shares of the stock are short sold.
Shares of Brocade Communications Systems (NASDAQ:BRCD) opened at 9.46 on Wednesday. Brocade Communications Systems has a one year low of $7.40 and a one year high of $10.94. The stock’s 50 day moving average is $9.32 and its 200-day moving average is $9.21. The firm has a market cap of $3.79 billion, a P/E ratio of 17.20 and a beta of 0.74.
Brocade Communications Systems (NASDAQ:BRCD) last issued its quarterly earnings results on Thursday, August 25th. The company reported $0.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.05. Brocade Communications Systems had a net margin of 10.17% and a return on equity of 12.84%. The business had revenue of $590.72 million for the quarter, compared to analyst estimates of $573.14 million. During the same period in the previous year, the business posted $0.27 earnings per share. The business’s revenue was up 7.0% compared to the same quarter last year. Analysts anticipate that Brocade Communications Systems will post $0.93 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Stockholders of record on Friday, September 9th were paid a dividend of $0.055 per share. The ex-dividend date was Wednesday, September 7th. This represents a $0.22 dividend on an annualized basis and a dividend yield of 2.33%. Brocade Communications Systems’s dividend payout ratio (DPR) is 39.29%.
Several equities research analysts have recently issued reports on the stock. RBC Capital Markets reissued a “hold” rating on shares of Brocade Communications Systems in a research note on Sunday, August 28th. Piper Jaffray Cos. set a $9.00 price target on shares of Brocade Communications Systems and gave the company a “hold” rating in a research note on Sunday, August 28th. BMO Capital Markets reaffirmed a “hold” rating and issued a $10.00 price target on shares of Brocade Communications Systems in a research note on Friday, August 26th. Zacks Investment Research raised shares of Brocade Communications Systems from a “sell” rating to a “hold” rating in a research note on Friday, August 19th. Finally, Robert W. Baird reaffirmed a “sell” rating on shares of Brocade Communications Systems in a research note on Thursday, September 22nd. Two investment analysts have rated the stock with a sell rating, seventeen have given a hold rating and four have assigned a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $10.17.
In other news, COO Gale E. England sold 10,000 shares of the stock in a transaction dated Monday, August 22nd. The shares were sold at an average price of $10.19, for a total transaction of $101,900.00. Following the sale, the chief operating officer now directly owns 74,568 shares of the company’s stock, valued at approximately $759,847.92. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Ellen Odonnell sold 7,500 shares of the stock in a transaction dated Thursday, September 15th. The stock was sold at an average price of $9.00, for a total transaction of $67,500.00. Following the sale, the senior vice president now directly owns 6,118 shares in the company, valued at $55,062. The disclosure for this sale can be found here. Insiders own 1.60% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Boston Partners raised its position in shares of Brocade Communications Systems by 95.0% in the second quarter. Boston Partners now owns 21,319,531 shares of the company’s stock worth $195,713,000 after buying an additional 10,389,103 shares during the period. Vanguard Group Inc. raised its position in shares of Brocade Communications Systems by 21.6% in the second quarter. Vanguard Group Inc. now owns 34,710,641 shares of the company’s stock valued at $318,644,000 after buying an additional 6,172,835 shares during the last quarter. Bank of Montreal Can bought a new position in shares of Brocade Communications Systems during the second quarter valued at $55,044,000. Norges Bank bought a new position in shares of Brocade Communications Systems during the fourth quarter valued at $45,773,000. Finally, BlackRock Institutional Trust Company N.A. raised its position in shares of Brocade Communications Systems by 35.5% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 13,963,697 shares of the company’s stock valued at $128,187,000 after buying an additional 3,656,426 shares during the last quarter. Institutional investors and hedge funds own 87.88% of the company’s stock.
About Brocade Communications Systems
Brocade Communications Systems, Inc is a supplier of networking hardware, software and services, including storage area networking (SAN) solutions, and Internet protocol (IP) networking solutions for businesses and organizations of various types and sizes. The Company has three operating segments: SAN Products, IP Networking Products and Global Services.
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