Zacks Investment Research Upgrades Brocade Communications Systems Inc. (BRCD) to “Buy”
Zacks Investment Research upgraded shares of Brocade Communications Systems Inc. (NASDAQ:BRCD) from a hold rating to a buy rating in a report published on Thursday morning. They currently have $14.00 target price on the stock.
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. “
A number of other equities research analysts have also recently issued reports on the stock. Barclays PLC cut their price objective on shares of Brocade Communications Systems from $10.00 to $9.00 and set an equal weight rating for the company in a research note on Tuesday, August 23rd. DA Davidson assumed coverage on shares of Brocade Communications Systems in a research note on Monday, October 3rd. They issued a buy rating and a $12.00 price objective for the company. Argus reissued a buy rating and set a $13.00 price target on shares of Brocade Communications Systems in a research report on Wednesday, August 31st. Citigroup Inc. increased their price target on shares of Brocade Communications Systems from $10.00 to $11.00 and gave the company a neutral rating in a research report on Friday, August 26th. Finally, Wunderlich reissued a hold rating and set a $11.00 price target (up previously from $9.00) on shares of Brocade Communications Systems in a research report on Friday, August 26th. One equities research analyst has rated the stock with a sell rating, twenty have given a hold rating and three have issued a buy rating to the stock. Brocade Communications Systems has an average rating of Hold and a consensus price target of $10.90.
Shares of Brocade Communications Systems (NASDAQ:BRCD) opened at 12.36 on Thursday. The firm has a 50-day moving average of $10.75 and a 200 day moving average of $9.54. Brocade Communications Systems has a 1-year low of $7.40 and a 1-year high of $12.50. The company has a market capitalization of $4.97 billion, a P/E ratio of 24.24 and a beta of 0.79.
Brocade Communications Systems (NASDAQ:BRCD) last announced its quarterly earnings data on Monday, November 21st. The company reported $0.33 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.22 by $0.11. Brocade Communications Systems had a net margin of 9.12% and a return on equity of 13.42%. The company earned $657.30 million during the quarter, compared to analysts’ expectations of $639.96 million. During the same quarter in the prior year, the company earned $0.26 EPS. The firm’s revenue was up 11.6% on a year-over-year basis. On average, equities research analysts expect that Brocade Communications Systems will post $1.03 earnings per share for the current year.
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The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 4th. Stockholders of record on Monday, December 12th will be paid a $0.055 dividend. The ex-dividend date is Thursday, December 8th. This represents a $0.22 dividend on an annualized basis and a dividend yield of 1.78%. Brocade Communications Systems’s dividend payout ratio is presently 42.31%.
In other news, SVP Ellen Odonnell sold 7,500 shares of Brocade Communications Systems stock in a transaction that occurred on Thursday, September 15th. The shares were sold at an average price of $9.00, for a total value of $67,500.00. Following the completion of the sale, the senior vice president now directly owns 6,118 shares in the company, valued at $55,062. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.60% of the stock is currently owned by insiders.
Institutional investors have recently bought and sold shares of the company. Private Bank & Trust Co. acquired a new position in Brocade Communications Systems during the second quarter worth about $101,000. Acrospire Investment Management LLC increased 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 during the last quarter. Lipe & Dalton acquired a new position in Brocade Communications Systems during the second quarter worth about $104,000. Paragon Capital Management Ltd increased 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 during the last quarter. Finally, Advisors Asset Management Inc. acquired a new position in Brocade Communications Systems during the second quarter worth about $111,000. 82.37% of the stock is currently owned by institutional investors.
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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