Todays Report: The Brocade Communications Systems Inc. (BRCD) Short Interest Update

The Brocade Communications Systems Inc. (BRCD) Short Interest Update

Brocade Communications Systems Inc. (NASDAQ:BRCD) saw a significant decline in short interest in the month of September. As of September 30th, there was short interest totalling 11,241,364 shares, a decline of 21.0% from the September 15th total of 14,231,629 shares. Based on an average daily volume of 5,947,219 shares, the days-to-cover ratio is presently 1.9 days. Approximately 2.8% of the company’s shares are sold short.

In other news, COO Gale E. England sold 10,000 shares of the company’s stock in a transaction on Monday, August 22nd. The stock was sold at an average price of $10.19, for a total transaction of $101,900.00. Following the sale, the chief operating officer now owns 74,568 shares of the company’s stock, valued at $759,847.92. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Ellen Odonnell sold 7,500 shares of the company’s stock in a transaction on Thursday, September 15th. The stock was sold at an average price of $9.00, for a total value of $67,500.00. Following the sale, the senior vice president now directly owns 6,118 shares in the company, valued at approximately $55,062. The disclosure for this sale can be found here. 1.60% of the stock is owned by company insiders.

Large investors have recently added to or reduced their stakes in the stock. Private Bank & Trust Co. bought a new stake in Brocade Communications Systems during the second quarter worth approximately $101,000. Lipe & Dalton bought a new stake in Brocade Communications Systems during the second quarter worth approximately $104,000. Advisors Asset Management Inc. bought a new stake in Brocade Communications Systems during the second quarter worth approximately $111,000. Zurcher Kantonalbank Zurich Cantonalbank raised 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 worth $124,000 after buying an additional 1,683 shares during the last quarter. Finally, Barry Investment Advisors LLC raised 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 worth $126,000 after buying an additional 1,875 shares during the last quarter. 87.87% of the stock is owned by institutional investors and hedge funds.

A number of analysts have recently weighed in on BRCD shares. Robert W. Baird lowered Brocade Communications Systems from a “neutral” rating to an “underperform” rating and cut their price objective for the stock from $10.00 to $8.00 in a research report on Thursday, July 14th. Barclays PLC cut their price objective on Brocade Communications Systems from $10.00 to $9.00 and set an “equal weight” rating on the stock in a research report on Tuesday, August 23rd. DA Davidson started coverage on Brocade Communications Systems in a research report on Monday, October 3rd. They set a “buy” rating and a $12.00 price objective on the stock. Argus reaffirmed a “buy” rating and set a $13.00 price objective on shares of Brocade Communications Systems in a research report on Wednesday, August 31st. Finally, Wunderlich reaffirmed a “hold” rating and set a $11.00 price objective (up previously from $9.00) on shares of Brocade Communications Systems in a research report on Friday, August 26th. Two equities research analysts have rated the stock with a sell rating, seventeen have given a hold rating and four have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $10.17.

Shares of Brocade Communications Systems (NASDAQ:BRCD) opened at 8.82 on Friday. Brocade Communications Systems has a 12 month low of $7.40 and a 12 month high of $10.92. The stock has a 50 day moving average of $9.15 and a 200-day moving average of $9.18. The company has a market cap of $3.54 billion, a PE ratio of 16.04 and a beta of 0.74.

Brocade Communications Systems (NASDAQ:BRCD) last released its quarterly earnings results on Thursday, August 25th. The company reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of $0.16 by $0.05. The business earned $590.72 million during 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%. Brocade Communications Systems’s quarterly revenue was up 7.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.27 EPS. Equities analysts forecast that Brocade Communications Systems will post $0.93 earnings per share for the current year.

The business also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Friday, September 9th were given a $0.055 dividend. This represents a $0.22 dividend on an annualized basis and a yield of 2.49%. The ex-dividend date was Wednesday, September 7th. Brocade Communications Systems’s payout ratio is currently 39.29%.

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