Infinera (NASDAQ:INFN) Shares Gap Up Following Analyst Upgrade

Infinera Co. (NASDAQ:INFN) gapped up prior to trading on Friday after Morgan Stanley raised their price target on the stock from $5.40 to $6.65. The stock had previously closed at $5.26, but opened at $6.22. Morgan Stanley currently has an equal weight rating on the stock. Infinera shares last traded at $6.25, with a volume of 6,443,231 shares trading hands.

A number of other equities analysts have also recently issued reports on the stock. Stifel Nicolaus reaffirmed a “buy” rating and issued a $7.00 price objective on shares of Infinera in a research note on Wednesday, May 15th. B. Riley restated a “buy” rating and issued a $9.00 price target on shares of Infinera in a research report on Wednesday, May 15th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Infinera in a research note on Friday. One analyst has rated the stock with a sell rating, three have given a hold rating and three have assigned a buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $7.73.

Hedge Funds Weigh In On Infinera

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Infinera by 9.3% in the 1st quarter. Vanguard Group Inc. now owns 27,049,371 shares of the communications equipment provider’s stock valued at $163,108,000 after buying an additional 2,299,025 shares in the last quarter. Brown Advisory Inc. increased its holdings in shares of Infinera by 8.0% in the fourth quarter. Brown Advisory Inc. now owns 15,017,956 shares of the communications equipment provider’s stock worth $71,335,000 after acquiring an additional 1,108,567 shares in the last quarter. Hood River Capital Management LLC raised its position in shares of Infinera by 52.5% during the first quarter. Hood River Capital Management LLC now owns 4,162,231 shares of the communications equipment provider’s stock worth $25,098,000 after purchasing an additional 1,432,016 shares during the period. Charles Schwab Investment Management Inc. raised its position in shares of Infinera by 2.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,576,725 shares of the communications equipment provider’s stock worth $7,489,000 after purchasing an additional 35,676 shares during the period. Finally, BNP Paribas Financial Markets lifted its holdings in shares of Infinera by 1.2% during the 4th quarter. BNP Paribas Financial Markets now owns 641,719 shares of the communications equipment provider’s stock valued at $3,048,000 after purchasing an additional 7,370 shares in the last quarter. 97.54% of the stock is owned by institutional investors.

Infinera Price Performance

The company has a debt-to-equity ratio of 4.08, a quick ratio of 0.97 and a current ratio of 1.65. The firm has a market capitalization of $1.43 billion, a price-to-earnings ratio of -17.91 and a beta of 1.58. The company has a 50-day moving average of $5.28 and a 200-day moving average of $5.12.

Infinera (NASDAQ:INFN) last released its quarterly earnings results on Tuesday, May 14th. The communications equipment provider reported ($0.23) earnings per share for the quarter, missing the consensus estimate of ($0.16) by ($0.07). Infinera had a negative net margin of 5.11% and a negative return on equity of 27.68%. The company had revenue of $306.92 million during the quarter, compared to analyst estimates of $337.73 million. As a group, research analysts anticipate that Infinera Co. will post -0.19 EPS for the current fiscal year.

About Infinera

Infinera Corporation provides optical transport networking equipment, software, and services worldwide. The company's product portfolio includes Infinera Groove series for modular and sled-based platforms to support a various transport network applications; Infinera 7300 series, an SDN-ready coherent optical transport system; Infinera FlexILS open optical line system that connects various Infinera and third-party terminal equipment platforms over long-distance fiber optic cable providing switching, multiplexing, amplification, and management channels; and Infinera 7090 and 7100 series for transport platforms.