Insider Sell: Ciena Corp CEO Gary Smith Sells 4,166 Shares
On October 2, 2023, Gary Smith, President and CEO of Ciena Corp (NYSE:CIEN), sold 4,166 shares of the company. This move is part of a broader trend of insider selling at Ciena Corp, with 55 insider sells over the past year.
Gary Smith has been with Ciena Corp since 2001, serving as the CEO and President. Under his leadership, the company has grown into a global network strategy and technology company. Ciena Corp specializes in designing and implementing the innovative network infrastructures required by today's high-bandwidth applications. It is a key player in the networking sector, providing services to network operators, enterprises, governments, and research and education institutions worldwide.
Over the past year, Smith has sold a total of 68,124 shares and has not made any purchases. This recent sale represents a small fraction of his total transactions over the year.
The insider's selling trend is worth noting, especially considering the company's current valuation. On the day of the insider's recent sale, Ciena Corp's shares were trading at $47.32, giving the company a market cap of $6.72 billion.
The company's price-earnings ratio stands at 30.73, which is higher than the industry median of 21.49 and also higher than the companys historical median price-earnings ratio. This suggests that the stock is currently trading at a premium compared to its peers and its own historical standards.
However, according to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Ciena Corp is modestly undervalued. With a price of $47.32 and a GuruFocus Value of $62.90, the stock has a price-to-GF-Value ratio of 0.75.
The insider's selling activity, coupled with the company's valuation, suggests that investors should keep a close eye on Ciena Corp. While the stock appears to be modestly undervalued, the consistent insider selling could be a signal for potential concerns. As always, investors should conduct their own due diligence and consider multiple factors before making investment decisions.
This article first appeared on GuruFocus.
