Zacks Investment Research Downgrades Infinera (NASDAQ:INFN) to Hold

Zacks Investment Research downgraded shares of Infinera (NASDAQ:INFN) from a buy rating to a hold rating in a research report released on Wednesday morning, Zacks.com reports.

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. “

Other equities analysts have also issued research reports about the company. Rosenblatt Securities restated a hold rating and set a $6.00 price objective on shares of Infinera in a research note on Wednesday, November 13th. BidaskClub upgraded Infinera from a buy rating to a strong-buy rating in a research note on Tuesday, December 17th. MKM Partners raised their price objective on Infinera from $6.00 to $7.00 and gave the stock a buy rating in a research note on Tuesday, October 1st. JPMorgan Chase & Co. upgraded Infinera from an underweight rating to a neutral rating and set a $7.00 price objective on the stock in a research note on Wednesday, November 13th. Finally, Needham & Company LLC restated a strong-buy rating and set a $12.00 price objective (up previously from $10.00) on shares of Infinera in a research note on Thursday, January 2nd. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating, four have issued a buy rating and two have issued a strong buy rating to the stock. Infinera has an average rating of Hold and an average price target of $7.60.

Infinera stock traded up $0.27 during mid-day trading on Wednesday, reaching $8.12. 209,655 shares of the company were exchanged, compared to its average volume of 2,373,402. The company has a fifty day simple moving average of $7.26 and a 200-day simple moving average of $5.45. Infinera has a 12 month low of $2.80 and a 12 month high of $8.25. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.47 and a quick ratio of 0.89. The firm has a market cap of $1.42 billion, a PE ratio of -12.69 and a beta of 0.69.

Infinera (NASDAQ:INFN) last posted its quarterly earnings data on Tuesday, November 12th. The communications equipment provider reported ($0.17) EPS for the quarter, hitting the Zacks’ consensus estimate of ($0.17). Infinera had a negative return on equity of 34.56% and a negative net margin of 36.15%. The firm had revenue of $325.34 million for the quarter, compared to analyst estimates of $327.09 million. During the same quarter last year, the company earned ($0.04) EPS. The company’s revenue was up 62.3% on a year-over-year basis. Sell-side analysts anticipate that Infinera will post -0.9 earnings per share for the current year.

Institutional investors and hedge funds have recently modified their holdings of the company. Millennium Management LLC bought a new position in shares of Infinera in the 3rd quarter valued at $55,000. Point72 Asset Management L.P. bought a new position in shares of Infinera in the 3rd quarter valued at $56,000. Ladenburg Thalmann Financial Services Inc. increased its stake in shares of Infinera by 95.2% in the 2nd quarter. Ladenburg Thalmann Financial Services Inc. now owns 22,010 shares of the communications equipment provider’s stock valued at $66,000 after purchasing an additional 10,733 shares during the last quarter. US Bancorp DE increased its stake in shares of Infinera by 20.1% in the 2nd quarter. US Bancorp DE now owns 24,211 shares of the communications equipment provider’s stock valued at $70,000 after purchasing an additional 4,051 shares during the last quarter. Finally, Marshall Wace North America L.P. bought a new position in shares of Infinera in the 2nd quarter valued at $76,000. Institutional investors own 84.43% of the company’s stock.

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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