Zacks Investment Research upgraded shares of Brocade Communications Systems Inc. (NASDAQ:BRCD) from a hold rating to a buy rating in a research note released on Thursday. The firm currently has $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 brokerages have also commented on BRCD. Robert W. Baird restated a hold rating on shares of Brocade Communications Systems in a research report on Tuesday, November 22nd. Oppenheimer Holdings Inc. restated a hold rating on shares of Brocade Communications Systems in a research report on Wednesday, November 2nd. Royal Bank Of Canada lowered Brocade Communications Systems from an outperform rating to a sector perform rating and decreased their price objective for the stock from $14.00 to $12.75 in a research report on Thursday, November 3rd. RBC Capital Markets downgraded Brocade Communications Systems from an outperform rating to a sector perform rating and cut their price target for the stock from $14.00 to $12.75 in a research note on Thursday, November 3rd. Finally, Wunderlich downgraded Brocade Communications Systems from a hold rating to a sell rating and set a $11.00 price target for the company. in a research note on Thursday, November 3rd. One equities research analyst has rated the stock with a sell rating, twenty have assigned a hold rating and three have assigned a buy rating to the company. Brocade Communications Systems presently has an average rating of Hold and an average price target of $10.90.
Brocade Communications Systems (NASDAQ:BRCD) opened at 12.40 on Thursday. The stock has a market cap of $4.98 billion, a PE ratio of 24.31 and a beta of 0.79. The firm has a 50-day moving average price of $10.75 and a 200-day moving average price of $9.54. Brocade Communications Systems has a 12-month low of $7.40 and a 12-month high of $12.50.
Brocade Communications Systems (NASDAQ:BRCD) last announced its quarterly earnings data on Monday, November 21st. The company reported $0.33 EPS for the quarter, topping the Zacks’ consensus estimate of $0.22 by $0.11. Brocade Communications Systems had a return on equity of 13.42% and a net margin of 9.12%. The firm earned $657.30 million during the quarter, compared to analyst estimates of $639.96 million. During the same period last year, the company posted $0.26 EPS. The business’s quarterly revenue was up 11.6% compared to the same quarter last year. Analysts forecast that Brocade Communications Systems will post $1.03 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 4th. Stockholders of record on Monday, December 12th will be issued a dividend of $0.055 per share. This represents a $0.22 annualized dividend and a dividend yield of 1.78%. The ex-dividend date is Thursday, December 8th. Brocade Communications Systems’s 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 stock was sold at an average price of $9.00, for a total transaction of $67,500.00. Following the sale, the senior vice president now owns 6,118 shares of the company’s stock, valued at approximately $55,062. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 1.60% of the company’s stock.
Several hedge funds have recently made changes to their positions in the company. First Trust Advisors LP raised its stake in shares of Brocade Communications Systems by 20.3% in the third quarter. First Trust Advisors LP now owns 1,626,826 shares of the company’s stock valued at $15,016,000 after buying an additional 274,492 shares during the last quarter. BlueMountain Capital Management LLC raised its stake in shares of Brocade Communications Systems by 20.6% in the first quarter. BlueMountain Capital Management LLC now owns 130,612 shares of the company’s stock valued at $1,382,000 after buying an additional 22,266 shares in the last quarter. Acadian Asset Management LLC raised its stake in shares of Brocade Communications Systems by 312.5% in the second quarter. Acadian Asset Management LLC now owns 389,796 shares of the company’s stock valued at $3,578,000 after buying an additional 295,306 shares in the last quarter. GMT Capital Corp bought a new stake in shares of Brocade Communications Systems during the second quarter valued at approximately $2,845,000. Finally, Principal Financial Group Inc. raised its stake in shares of Brocade Communications Systems by 2,109.7% in the second quarter. Principal Financial Group Inc. now owns 1,761,871 shares of the company’s stock valued at $16,174,000 after buying an additional 1,682,139 shares in the last quarter. 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.