Brocade Communications Systems Inc. (NASDAQ:BRCD) has been assigned an average rating of “Hold” from the twenty-two analysts that are presently covering the stock. Two research analysts have rated the stock with a sell recommendation, seventeen have given a hold recommendation and three have issued a buy recommendation on the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $10.00.
BRCD has been the topic of a number of analyst reports. Robert W. Baird lowered Brocade Communications Systems from a “neutral” rating to an “underperform” rating and lowered their price objective for the company from $10.00 to $8.00 in a report on Thursday, July 14th. Barclays PLC lowered their price objective on Brocade Communications Systems from $10.00 to $9.00 and set an “equal weight” rating on the stock in a report on Tuesday, August 23rd. Argus reissued a “buy” rating and set a $13.00 price objective on shares of Brocade Communications Systems in a report on Wednesday, August 31st. Wunderlich restated a “hold” rating and set a $11.00 target price (up previously from $9.00) on shares of Brocade Communications Systems in a research note on Friday, August 26th. Finally, Citigroup Inc. increased their target price on Brocade Communications Systems from $10.00 to $11.00 and gave the company a “neutral” rating in a research note on Friday, August 26th.
Shares of Brocade Communications Systems (NASDAQ:BRCD) opened at 9.23 on Thursday. Brocade Communications Systems has a 52-week low of $7.40 and a 52-week high of $10.94. The company’s 50-day moving average price is $9.34 and its 200-day moving average price is $9.24. The stock has a market cap of $3.70 billion, a PE ratio of 16.78 and a beta of 0.55.
Brocade Communications Systems (NASDAQ:BRCD) last issued its quarterly earnings data on Thursday, August 25th. The company reported $0.21 EPS for the quarter, beating the Zacks’ consensus estimate of $0.16 by $0.05. The business had revenue of $590.72 million for the quarter, compared to analyst estimates of $573.14 million. Brocade Communications Systems had a return on equity of 12.84% and a net margin of 10.17%. The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.27 EPS. Analysts expect that Brocade Communications Systems will post $0.93 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, October 3rd. Investors of record on Friday, September 9th will be issued a dividend of $0.055 per share. The ex-dividend date of this dividend is Wednesday, September 7th. This represents a $0.22 dividend on an annualized basis and a yield of 2.38%. Brocade Communications Systems’s dividend payout ratio is 39.29%.
In other news, COO Gale E. England sold 10,000 shares of Brocade Communications Systems stock in a transaction on Monday, August 22nd. The stock was sold at an average price of $10.19, for a total value of $101,900.00. Following the completion of the sale, the chief operating officer now directly owns 74,568 shares of the company’s stock, valued at approximately $759,847.92. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Ellen Odonnell sold 7,500 shares of Brocade Communications Systems stock in a transaction 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 of the company’s stock, valued at $55,062. The disclosure for this sale can be found here. Corporate insiders own 1.60% of the company’s stock.
Several large investors have recently added to or reduced their stakes in BRCD. Private Bank & Trust Co. purchased a new stake in Brocade Communications Systems during the second quarter valued at approximately $101,000. Lipe & Dalton purchased a new stake in Brocade Communications Systems during the second quarter valued at approximately $104,000. Advisors Asset Management Inc. purchased a new stake in Brocade Communications Systems during the second quarter valued at approximately $111,000. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in Brocade Communications Systems by 14.2% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 13,535 shares of the company’s stock valued at $124,000 after buying an additional 1,683 shares during the period. Finally, Barry Investment Advisors LLC boosted its stake in Brocade Communications Systems by 15.9% in the second quarter. Barry Investment Advisors LLC now owns 13,686 shares of the company’s stock valued at $126,000 after buying an additional 1,875 shares during the period. 87.88% of the stock is owned by institutional investors.
About Brocade Communications Systems
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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