Brocade Communications Systems Inc. (BRCD) Stock Rating Upgraded by Zacks Investment Research
Brocade Communications Systems Inc. (NASDAQ:BRCD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday. The brokerage currently has a $14.00 target price on the stock. Zacks Investment Research’s price objective would indicate a potential upside of 13.09% from the company’s current price.
According to Zacks, “Brocade Communications Systems, Inc. delivers industry-leading platforms, solutions, and services for intelligently connecting, managing, and optimizing IT resources in shared storage environments. The world’s premier systems, server, and storage providers offer the Brocade SilkWorm family of Storage Area Network connectivity platforms as the foundation for shared storage in organizations of all sizes. In addition, the Brocade Tapestry family of IT infrastructure solutions extends the ability to proactively manage and optimize application and information resources across the enterprise. Using Brocade solutions, organizations are better positioned to reduce cost, manage complexity, and satisfy business compliance requirements through optimized use and management of their IT resources. “
Other analysts have also issued reports about the company. 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 objective on Brocade Communications Systems and gave the company a “hold” rating in a research note on Sunday, August 28th. JMP Securities reaffirmed a “hold” rating on shares of Brocade Communications Systems in a research note on Thursday, September 22nd. Oppenheimer Holdings Inc. reaffirmed a “hold” rating on shares of Brocade Communications Systems in a research note on Wednesday, November 2nd. Finally, Robert W. Baird reaffirmed a “sell” rating on shares of Brocade Communications Systems in a research note on Thursday, September 22nd. One analyst has rated the stock with a sell rating, twenty have assigned a hold rating and three have issued a buy rating to the company. Brocade Communications Systems presently has an average rating of “Hold” and an average target price of $10.90.
Brocade Communications Systems (NASDAQ:BRCD) opened at 12.38 on Thursday. Brocade Communications Systems has a one year low of $7.40 and a one year high of $12.50. The firm has a market capitalization of $4.97 billion, a P/E ratio of 24.27 and a beta of 0.79. The company has a 50-day moving average price of $10.66 and a 200-day moving average price of $9.49.
Brocade Communications Systems (NASDAQ:BRCD) last issued its quarterly earnings results on Monday, November 21st. The company reported $0.33 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.22 by $0.11. Brocade Communications Systems had a return on equity of 13.42% and a net margin of 9.12%. The firm had revenue of $657.30 million for the quarter, compared to analyst estimates of $639.96 million. During the same period last year, the company earned $0.26 EPS. The firm’s quarterly revenue was up 11.6% on a year-over-year basis. On average, equities research analysts anticipate that Brocade Communications Systems will post $1.03 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 4th. Investors of record on Monday, December 12th will be given a dividend of $0.055 per share. The ex-dividend date of this dividend is Thursday, December 8th. This represents a $0.22 dividend on an annualized basis and a yield of 1.78%. Brocade Communications Systems’s dividend payout ratio is currently 42.31%.
In related news, SVP Ellen Odonnell sold 7,500 shares of the business’s stock in a transaction that occurred on Thursday, September 15th. The stock was sold at an average price of $9.00, for a total transaction of $67,500.00. Following the completion of the transaction, the senior vice president now owns 6,118 shares in the company, valued at approximately $55,062. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 1.60% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Private Bank & Trust Co. bought a new position in Brocade Communications Systems during the second quarter worth about $101,000. Acrospire Investment Management LLC raised its position in Brocade Communications Systems by 20.4% in the third quarter. Acrospire Investment Management LLC now owns 11,211 shares of the company’s stock worth $103,000 after buying an additional 1,900 shares in the last quarter. Lipe & Dalton bought a new position in Brocade Communications Systems during the second quarter worth about $104,000. Paragon Capital Management Ltd raised its position in Brocade Communications Systems by 7.9% in the third quarter. Paragon Capital Management Ltd now owns 11,377 shares of the company’s stock worth $105,000 after buying an additional 832 shares in the last quarter. Finally, Advisors Asset Management Inc. bought a new position in Brocade Communications Systems during the second quarter worth about $111,000. Institutional investors and hedge funds own 82.37% of the company’s stock.
Brocade Communications Systems Company Profile
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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