Brocade Communications Systems, Inc. (NASDAQ:BRCD) stock is currently pricing at roughly $12.58. Our analysis shows that the stock is widely covered by equity research firms, and target prices are revealing. From a summary standpoint, we track the median one-year price target among 10 analysts covering the company at $12.75. That suggests shares of the stock may have another 1 percent to the upside left to run. Of those analysts we surveyed, the highest price target on recordsits at $13.00, which would imply another 97 percent in upside potential. If we look for a little more qualitative data on the range of expectations, we find in analyst notes that the stock has 0 “Buy” ratings in place. At the same time, 0 rate the stock a “strong buy”, suggesting more conviction in the story. As for the doubters, 12 equity research analyst firms call this stock a “Hold” and 1 consider it bad enough to warrant a “Sell” rating.
Analysts at DA Davidson took a look at BRCD shares in a research note released on Nov 03, 2016, and issued a Neutral rating to this company. Wunderlich analysts provided their own take on company recently as well. In a research note published on Nov 03, 2016,the house assigned a Sell rating to this stock. According to a piece that hit the wires on Nov 03, 2016, researchers at RBC Capital Mkts reconsidered their prior rating on the stock, and lowered it from Outperform Perform to Sector Perform.
Brocade Communications Systems, Inc. (BRCD) Cap Table Analysis
Breaking down the capitalization table is our next goal. From a bird’s eye view, Executives hold 1.06 percent of the stock.
If we take a more granular look, Lloyd A. Carney is one of the largest owners in company capital stock among insiders. According to U.S. Securities and Exchange Commission (SEC) filings, this investor owns 810,477 shares, representing a total current market value of roughly $10195800.66. Ken K. Cheng is another major player among company insiders, currently holding 520,826 shares as of 0.13%, carrying a current market value of $6551991.08. Richard Deranleau is currently ranked as the number three insider in terms of representation on the cap table for the stock, holding 331,563 shares, valued at around $4171062.54 as of recent close.
We noted a few insider transactions for the stock recently as well.
In a transaction on 2017-03-22, the company’s CEO CARNEY LLOYD sold 1,050,916 company shares for 13104920. That means, once accounting for this transaction, the CEO is left with a stake of 252,060 shares, carrying a current total market value of $3170915. In addition, by means of a transaction dated 2017-03-15, Director VASWANI SANJAY sold 40,000 shares worth $495200. After that transaction, this investor is left with a total holding of 177,974 shares, representing a total investment value of $2238912.92. We also noted a 2017-03-15 transaction in which BRCD COO and SVP Operations England Gale E. sold 463,062 shares at a stock price of $12.38, carrying a total value of $5732710, after which, this insider’s investment stands at 0 shares, with an overall financial value of $0.
Brocade Communications Systems, Inc. (NASDAQ:BRCD) Earnings View
In the company’s last quarter, BRCD EPS moved to $0.16 from $0.33 compared sequentially with the prior quarter. Revenues for the company came in at $581.46MM. This stacks up against $657.3MM, on a sequential basis.
How does this compare with bottom and top-line expectations? Well, according to what we could find, analysts had been looking for the company to post net income of about $0.25 per share on $648.88MM in revenue. That sets up an interesting next quarter report card. We would note that analysts seem to be projecting earnings, on average, for this quarter in the range of $0.14 to $0.24. On a year-over-year basis, that compares with an EPS comp of $0.22.