Ciena Corporation (NYSE:CIEN)
New Positions: Renaissance Technologies (1.92 million shares), Two Sigma Advisors (24,455 shares), Winton Capital (270,765 shares)
About Ciena Corporation (NYSE:CIEN): Ciena provides network products and services for the telecommunications industry, governments, and businesses. Its Wavelogic Ai allows for autonomous running of optical networks, while its Liquid Spectrum allows clients to monitor and optimize their network performance through advanced new software tools.
Analysts Like Ciena Corporation (NYSE:CIEN): Goldman Sachs recently upgraded Ciena to ‘Buy’ from ‘Neutral’, citing strength in U.S carrier capital spending thanks to a more competitive environment. The bank’s $27 price target on Ciena shares is 15% higher than their current price. In a report last year, Jefferies expressed confidence in Ciena’s sales growth for 2018, suggesting that management’s 5% revenue growth target was conservative.
Will Ciena Corporation (NYSE:CIEN) Be Acquired?: There has been some strength in Ciena’s shares in recent days, which has been attributed to renewed speculation that the company could be acquired. Ciena has been the subject of takeover rumors for years, with Ericsson having been mentioned as a potential suitor in the past.
Ciena Corporation (NYSE:CIEN) Enjoying Strong Growth in India, China: Ciena’s international revenue jumped to $326.2 million in the fourth-quarter, up by nearly $50 million year-over-year. That helped offset declining U.S revenue, which fell by nearly $19 million during the same period. Most of that international growth was in the Asia Pacific region, which now accounts for 20.1% of Ciena’s revenue.
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Primerica, Inc. (NYSE:PRI)
New Positions: Winton Capital (58,806 shares), Renaissance Technologies (56,250 shares)
Closed Position: Two Sigma Advisors (-10,900 shares)
About Primerica, Inc. (NYSE:PRI): Primerica is an MLM company, a revelation which tends to illicit surprised reactions as minds conjure up images of vile pyramid schemes, the bane of all humanity. The company claims only that it’s a financial services company, though admittedly one which rewards recruiters with a cut of the sales made by recruitees. Regardless of where you stand on the debate, Primerica has quietly gone about its business, gaining over 400% since its IPO in 2010.
Why Buy Primerica, Inc. (NYSE:PRI)? Primerica is coming off a strong fourth quarter, with adjusted operating revenue rising to $442 million, up by 13% year-over-year, while adjusted operating income jumped by 25%. The company plans to repurchase around $200 million worth of shares this year and raised its dividend by 25%, pushing its yield to just above 1%. The company’s “Life Insurance Licensed Sales Force” had grown to 126,121-strong as of the end of 2017, up by 8% from a year earlier.
Why Sell Primerica, Inc. (NYSE:PRI)?: In this case, one of the three quants, Two Sigma, went against its fellow quants and unloaded a small position in the stock during the fourth quarter. Despite Herbalife Ltd. (NYSE:HLF) getting the bulk of the bad press thanks to billionaire Bill Ackman‘s crusade against the company, Primerica may not be as safe from future regulatory scrutiny as it may currently appear. That could be bad news should the FTC’s eyes fall upon them, as Herbalife was forced into a settlement and had to change the way that it marketed itself.
Hedge Fund Ownership of Primerica, Inc. (NYSE:PRI): As of September 30, 18 hedge funds in our database were long Primerica, owning a collective $288 million in shares. In addition to Winton and Renaissance, two other hedge funds in our system also opened positions in Primerica in the fourth-quarter, being Steve Cohen‘s Point72 Asset Management and Matthew Tewksbury’s Stevens Capital Management.
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Disclosure: None
