The Case for and Against Ribbon Communications Inc. (RBBN)

Ribbon Communications Inc. (RBBN) is an interesting player in the Technology space, with a focus on Telecom Services – Domestic. The stock has been active on the tape, currently trading at $5.27, down from yesterday’s close by -9.29%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Ribbon Communications Inc. (RBBN) currently trades with a market capitalization of $540.60 Million. That value represents a market adjusting for revenues that have been growing by 116.38 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $13.94 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.06 on a per share basis this quarter. Perhaps, that suggests something about why 22.62% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how RBBN has been acting. Looking at the stock’s movement on the chart, Ribbon Communications Inc. recorded a 52-week high of $9.05. It is now trading 3.78% off that level. The stock is trading $6.85 its 50-day moving average by 1.58%. The stock carved out a 52-week low down at $5.46.

In recent action, Ribbon Communications Inc. (RBBN) has made a move of -20.75% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.8, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.08% with $102.08 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of RBBN.

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