Ribbon Communications (NASDAQ:RBBN) Downgraded to Neutral Rating by B. Riley Securities

B. Riley Securities cut shares of Ribbon Communications (NASDAQ:RBBN) from a buy rating to a neutral rating in a report released on Friday, MarketBeat.com reports. The firm currently has $2.90 price objective on the communications equipment provider’s stock.

Several other equities research analysts also recently issued reports on RBBN. Wall Street Zen downgraded shares of Ribbon Communications from a “buy” rating to a “hold” rating in a research report on Saturday, October 25th. B. Riley Financial downgraded Ribbon Communications from a “buy” rating to a “neutral” rating and set a $2.90 price target on the stock. in a research note on Friday. Rosenblatt Securities cut their price target on Ribbon Communications from $6.00 to $4.00 and set a “buy” rating on the stock in a report on Friday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Ribbon Communications in a report on Thursday, January 22nd. Finally, Northland Securities set a $4.00 target price on Ribbon Communications in a research report on Friday. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Ribbon Communications currently has a consensus rating of “Hold” and a consensus target price of $3.97.

Ribbon Communications Stock Down 27.9%

NASDAQ:RBBN opened at $1.96 on Friday. Ribbon Communications has a 1 year low of $1.80 and a 1 year high of $5.38. The stock has a 50-day moving average price of $2.82 and a two-hundred day moving average price of $3.37. The stock has a market cap of $346.14 million, a price-to-earnings ratio of 8.91 and a beta of 1.07. The company has a current ratio of 1.43, a quick ratio of 1.16 and a debt-to-equity ratio of 0.91.

Ribbon Communications (NASDAQ:RBBN) last released its quarterly earnings data on Thursday, February 5th. The communications equipment provider reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.48. Ribbon Communications had a return on equity of 27.48% and a net margin of 4.69%.The business had revenue of $227.32 million for the quarter, compared to analysts’ expectations of $241.35 million. During the same quarter in the previous year, the business posted $0.16 EPS. Ribbon Communications’s revenue for the quarter was down 9.6% on a year-over-year basis. As a group, equities analysts expect that Ribbon Communications will post 0.18 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. First Eagle Investment Management LLC boosted its stake in shares of Ribbon Communications by 16.5% during the 2nd quarter. First Eagle Investment Management LLC now owns 1,025,914 shares of the communications equipment provider’s stock worth $4,114,000 after acquiring an additional 145,159 shares during the period. Connor Clark & Lunn Investment Management Ltd. lifted its holdings in Ribbon Communications by 24.1% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,476,053 shares of the communications equipment provider’s stock valued at $5,919,000 after purchasing an additional 286,803 shares during the last quarter. Teacher Retirement System of Texas boosted its position in Ribbon Communications by 35.9% during the second quarter. Teacher Retirement System of Texas now owns 72,022 shares of the communications equipment provider’s stock worth $289,000 after purchasing an additional 19,013 shares during the period. White Pine Capital LLC increased its holdings in shares of Ribbon Communications by 17.8% in the second quarter. White Pine Capital LLC now owns 418,957 shares of the communications equipment provider’s stock valued at $1,680,000 after purchasing an additional 63,435 shares during the last quarter. Finally, Almanack Investment Partners LLC. bought a new position in shares of Ribbon Communications in the second quarter valued at about $58,000. Institutional investors own 70.92% of the company’s stock.

Ribbon Communications News Summary

Here are the key news stories impacting Ribbon Communications this week:

• Positive Sentiment: Q4 EPS materially beat expectations — Ribbon reported $0.59 EPS vs. a consensus ~$0.11, driven by margin items and stronger profitability metrics. This is a near-term positive for earnings credibility. Article Title
• Positive Sentiment: Company highlights: PR release cites strong cash flow, bookings from expanding voice-modernization customers and >25% growth with U.S. Tier 1 service providers; Ribbon says it’s targeting expansion into AI and defense markets — potential longer-term growth drivers. Article Title
• Neutral Sentiment: Earnings call/transcripts and slide deck are available for deeper detail on project timing, backlog and mix — useful for investors wanting management’s commentary on the weak revenue cadence. Article Title
• Neutral Sentiment: Outlook nuance: Seeking Alpha and company materials show Ribbon projecting up to ~$875M for 2026 revenue “amid a cautious outlook” — management is signaling opportunity (voice modernization) but also caution on timing. Article Title
• Negative Sentiment: Revenue miss and weak guidance drove the selloff — Q4 revenue was $227.3M (below estimates) and management set 1Q revenue guidance of $160–170M vs. a ~$196M consensus and FY revenue guidance $850–865M vs. ~$905M expected. That guidance shortfall is the primary negative catalyst. Article Title
• Negative Sentiment: Analyst reactions: B. Riley downgraded RBBN from Buy to Neutral (PT $2.90) and several firms (Rosenblatt, Citizens/JMP) trimmed price targets to $4 (some kept Buy/Outperform). The mix of downgrades and PT cuts reflects investor concern about near-term revenue visibility. Article Title Article Title

About Ribbon Communications

Ribbon Communications Inc is a global provider of real-time communications software and network solutions for service providers and enterprises. The company’s offerings address the full life cycle of voice, video and data transmission across fixed, mobile and cloud environments. Ribbon’s technology portfolio is designed to enable secure, intelligent and interoperable communications in applications such as unified communications, contact centers, wholesale VoIP interconnect and next-generation 5G networks.

Ribbon’s product suite includes session border controllers (SBCs), which secure and interwork IP voice and multimedia sessions; Diameter signaling controllers for 4G/5G policy and charging control; network edge virtualization platforms; and analytics engines for service assurance and fraud management.