Zacks Investment Research cut shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD) from a buy rating to a hold rating in a report released on Tuesday morning.

According to Zacks, “Brocade Communications Systems, Inc. delivers industry-leading platforms, solutions, and services for intelligently connecting, managing, and optimizing IT resources in shared storage environments. The world’s premier systems, server, and storage providers offer the Brocade SilkWorm family of Storage Area Network connectivity platforms as the foundation for shared storage in organizations of all sizes. In addition, the Brocade Tapestry family of IT infrastructure solutions extends the ability to proactively manage and optimize application and information resources across the enterprise. Using Brocade solutions, organizations are better positioned to reduce cost, manage complexity, and satisfy business compliance requirements through optimized use and management of their IT resources. “

A number of other research analysts have also issued reports on the company. BidaskClub lowered Brocade Communications Systems from a hold rating to a sell rating in a report on Wednesday, July 19th. Royal Bank Of Canada reissued a hold rating and issued a $12.75 target price on shares of Brocade Communications Systems in a report on Friday, June 9th. Stifel Nicolaus reissued a hold rating and issued a $12.75 target price on shares of Brocade Communications Systems in a report on Friday, May 26th. Finally, Wunderlich reissued a sell rating on shares of Brocade Communications Systems in a report on Thursday, March 30th. Two research analysts have rated the stock with a sell rating and fifteen have assigned a hold rating to the stock. The company has an average rating of Hold and an average target price of $11.13.

Brocade Communications Systems (NASDAQ BRCD) traded down 0.16% during midday trading on Tuesday, reaching $12.58. The company’s stock had a trading volume of 6,527,778 shares. The stock has a market cap of $5.16 billion, a P/E ratio of 86.16 and a beta of 0.67. The stock’s 50 day moving average is $12.64 and its 200 day moving average is $12.53. Brocade Communications Systems has a 12-month low of $8.64 and a 12-month high of $12.72.

Brocade Communications Systems (NASDAQ:BRCD) last released its earnings results on Thursday, May 25th. The technology company reported $0.10 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.01 by $0.09. The business had revenue of $552.80 million for the quarter, compared to analyst estimates of $602.92 million. Brocade Communications Systems had a return on equity of 8.49% and a net margin of 2.54%. The company’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.22 earnings per share. Analysts anticipate that Brocade Communications Systems will post $0.58 earnings per share for the current year.

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The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 5th. Investors of record on Monday, June 12th were issued a dividend of $0.055 per share. This represents a $0.22 dividend on an annualized basis and a yield of 1.75%. The ex-dividend date was Thursday, June 8th. Brocade Communications Systems’s dividend payout ratio is presently 157.14%.

In other Brocade Communications Systems news, SVP Ken Cheng sold 200,000 shares of the business’s stock in a transaction on Friday, June 9th. The stock was sold at an average price of $12.62, for a total transaction of $2,524,000.00. Following the sale, the senior vice president now directly owns 252,338 shares in the company, valued at $3,184,505.56. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Ellen Odonnell sold 7,811 shares of the business’s stock in a transaction on Wednesday, June 14th. The stock was sold at an average price of $12.64, for a total value of $98,731.04. Following the sale, the senior vice president now owns 19,037 shares in the company, valued at $240,627.68. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 276,299 shares of company stock worth $3,487,050. 1.77% of the stock is owned by company insiders.

A number of hedge funds have recently bought and sold shares of the company. Havens Advisors LLC increased its stake in Brocade Communications Systems by 207.4% in the first quarter. Havens Advisors LLC now owns 418,000 shares of the technology company’s stock worth $5,217,000 after buying an additional 282,000 shares during the last quarter. Nationwide Fund Advisors increased its stake in Brocade Communications Systems by 2.0% in the first quarter. Nationwide Fund Advisors now owns 743,300 shares of the technology company’s stock worth $9,276,000 after buying an additional 14,628 shares during the last quarter. Retirement Systems of Alabama increased its stake in Brocade Communications Systems by 1.3% in the first quarter. Retirement Systems of Alabama now owns 526,346 shares of the technology company’s stock worth $6,569,000 after buying an additional 6,809 shares during the last quarter. State of Alaska Department of Revenue purchased a new stake in Brocade Communications Systems during the first quarter worth approximately $1,591,000. Finally, Louisiana State Employees Retirement System increased its stake in Brocade Communications Systems by 3.5% in the first quarter. Louisiana State Employees Retirement System now owns 103,000 shares of the technology company’s stock worth $1,285,000 after buying an additional 3,500 shares during the last quarter. Institutional investors own 81.79% of the company’s stock.

Brocade Communications Systems Company Profile

Brocade Communications Systems, Inc (Brocade) is a supplier of networking hardware, software and services, including storage area networking (SAN) solutions and Internet protocol (IP) networking solutions for businesses and organizations of various types and sizes. The Company operates through three segments: SAN Products, IP Networking Products and Global Services.

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Analyst Recommendations for Brocade Communications Systems (NASDAQ:BRCD)

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