Ciena Shares Rise, But Company Insiders Are Dropping Stock
Shares of Ciena Corp. (NASDAQ:CIEN) jumped 11 percent on Thursday on better-than-expected second quarter results.
According to CBS News, the communications network product maker reported a loss that came in less severe than had been expected, and its revenue improved. But company insiders don't appear to share the same optimism as investors. The company reported a loss of 28 cents per share, compared with 66 cents per share one year earlier.
The increase was enough to convince Stuart Jeffrey of Normura Equity Research to reaffirm his "Buy " rating of the stock, and gave it a $17 price target. Ciena's stock climbed $1.32 on the news to $13.20.
But Ciena senior vice president and CTO Stephen B. Alexander sold 3,500 shares valued at $13.40 on May 15 for a total of $46,900, despite the growing shares. And Alexander wasn't alone. In the last three months, company insiders have sold a total of $1.27 million in shares, ranging from $13.40 to $16.32 each.
With things apparently going well for the company, why would these officials be filing so many insider trades with the SEC?
Read Full Insider Report For: CIEN |