Shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD) stock surged over 16% today and closed up 8.95% following stronger-than-expected third-quarter fiscal year 2015 (3QFY15) results reported by the company after the closing bell on Thursday. Finally, RBC Capital cut Brocade Communications Systems from an outperform rating to a sector perform rating and decreased their price target for the company from $13.00 to $12.00 in a research note on Monday, July 13th. Growth in EPS is an important measure of management performance because it shows how much money the company is making for it’s shareholders, not only due to changes in profit, but also after all the effects of issuance of new shares (this is especially important when the growth comes as a result of acquisition).
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This stock rating upgrade is welcomed by stock speculators, as NASDAQ:BRCD is now trading 12.60% higher at $10.94 as of 10:55 New York time. (NASDAQ:BRCD) at 2.88. Research Analysts at Zacks have ranked the company at 3, suggesting the traders with a rating of hold for the short term. In the prior year, the firm paid out $0 per share in dividends, or a difference of N/A%. The Computers & Integrated Systems company announced earnings per share of $0.27 against a consensus Street estimate of $0.2, beating the average estimate by $0.07. Earnings Watch Brocade Communications Systems, Inc. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Goldman Sachs raised Brocade Communications Systems from a “sell” rating to a “neutral” rating and increased their price target for the company from $11.00 to $12.00 in a research note on Friday. The shares were sold at an average price of $12.48, for a total value of $124,800.00. The stock was sold at an average price of $12.15, for a total value of $189,868.05. Also, COO Gale E. England sold 10,000 shares of the firm’s stock in a transaction on Thursday, June 18th. Eleven analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. The disclosure for this sale can be found here.
“We rate BROCADE COMMUNICATIONS SYS (BRCD) a BUY”. This represents a $0.18 dividend on an annualized basis and a dividend yield of 1.70%. (Brocade) is a supplier of networking equipment, including end-to-end Internet Protocol-based Ethernet networking solutions and storage area networking solutions for businesses and organizations of all types and sizes, including global enterprises, and service providers, such as telecommunication firms, cable operators and mobile carriers.
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Brocade said it achieved 43 percent growth in IP Networking product revenue from service providers and 32 percent increase in revenue from U.S. federal. It operates in four segments: Data Storage, Global Services, IP Layer 2-3 and IP Layer 4-7/ Application Delivery Products.
