Infinera (NASDAQ:INFN) Raised to “Buy” at Zacks Investment Research

Infinera (NASDAQ:INFN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday, Zacks.com reports. The brokerage presently has a $5.75 target price on the communications equipment provider’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 4.74% from the stock’s current price.

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. “

A number of other research analysts have also recently commented on INFN. MKM Partners increased their price target on Infinera from $9.50 to $10.50 and gave the company a “buy” rating in a research note on Wednesday, February 26th. Citigroup cut Infinera from a “neutral” rating to a “sell” rating and dropped their price target for the company from $9.00 to $3.50 in a research note on Monday, March 16th. Rosenblatt Securities raised their target price on Infinera from $7.00 to $8.00 and gave the stock a “hold” rating in a research report on Wednesday, February 26th. Piper Sandler raised their target price on Infinera to and gave the stock a “neutral” rating in a research report on Wednesday, February 26th. Finally, Stifel Nicolaus raised their target price on Infinera from $7.00 to $8.00 and gave the stock a “hold” rating in a research report on Wednesday, February 26th. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $7.76.

Shares of INFN opened at $5.49 on Friday. Infinera has a 52 week low of $2.80 and a 52 week high of $8.35. The stock has a market capitalization of $975.55 million, a price-to-earnings ratio of -2.53 and a beta of 0.76. The company has a debt-to-equity ratio of 1.01, a quick ratio of 0.84 and a current ratio of 1.32. The stock has a fifty day moving average of $6.34 and a 200-day moving average of $6.45.

Infinera (NASDAQ:INFN) last announced its quarterly earnings results on Tuesday, February 25th. The communications equipment provider reported $0.03 EPS for the quarter, beating the Zacks’ consensus estimate of ($0.08) by $0.11. Infinera had a negative return on equity of 30.29% and a negative net margin of 29.77%. The company had revenue of $384.57 million during the quarter, compared to analysts’ expectations of $366.00 million. As a group, equities analysts forecast that Infinera will post -0.42 EPS for the current year.

In other Infinera news, major shareholder Oaktree Fund Gp, Llc acquired 3,200,000 shares of the stock in a transaction dated Wednesday, March 18th. The stock was purchased at an average cost of $4.37 per share, with a total value of $13,984,000.00. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, major shareholder Optical Holdings L.P. Oaktree acquired 1,200,000 shares of the stock in a transaction dated Monday, March 16th. The stock was acquired at an average cost of $3.95 per share, with a total value of $4,740,000.00. The disclosure for this purchase can be found here. 2.80% of the stock is owned by company insiders.

Several hedge funds have recently bought and sold shares of the company. Geode Capital Management LLC raised its position in shares of Infinera by 3.9% in the 4th quarter. Geode Capital Management LLC now owns 2,237,632 shares of the communications equipment provider’s stock worth $17,766,000 after acquiring an additional 83,074 shares in the last quarter. Point72 Asset Management L.P. raised its position in shares of Infinera by 7,426.5% in the 4th quarter. Point72 Asset Management L.P. now owns 769,204 shares of the communications equipment provider’s stock worth $6,107,000 after acquiring an additional 758,984 shares in the last quarter. Cubist Systematic Strategies LLC raised its position in shares of Infinera by 12,105.7% in the 4th quarter. Cubist Systematic Strategies LLC now owns 122,057 shares of the communications equipment provider’s stock worth $969,000 after acquiring an additional 121,057 shares in the last quarter. AQR Capital Management LLC bought a new position in shares of Infinera in the 4th quarter worth about $238,000. Finally, Schonfeld Strategic Advisors LLC bought a new position in shares of Infinera in the 4th quarter worth about $6,272,000. 87.43% of the stock is owned by hedge funds and other institutional investors.

Infinera Company Profile

Infinera Corporation provides optical transport networking 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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