Infinera Corporation (NASDAQ:INFN) Shares In 2022: Bullish Prospects

Infinera Corporation (NASDAQ:INFN) price on Thursday, March 24, rose 7.12% above its previous day’s close as an upside momentum from buyers pushed the stock’s value to $8.81.

A look at the stock’s price movement, the level at last check in today’s session was $8.22, moving within a range at $8.22 and $8.46. The beta value (5-Year monthly) was 1.05. Turning to its 52-week performance, $10.89 and $7.22 were the 52-week high and 52-week low respectively. Overall, INFN moved -9.47% over the past month.

Infinera Corporation’s market cap currently stands at around $1.73 billion, with investors looking forward to this quarter’s earnings report slated for May 02, 2022 – May 06, 2022. Analysts project the company’s earnings per share (EPS) to be $0.01, which has seen fiscal year 2021 EPS growth forecast to increase to -$0.05 and about $0.21 for fiscal year 2022. Per the data, EPS growth is expected to be 73.70% for 2022 and 520.00% for the next financial year.

Analysts have a consensus estimate of $385.99 million for the company’s revenue for the quarter, with a low and high estimate of $381 million and $391.24 million respectively. The average forecast suggests up to a 8.90% growth in sales growth compared to quarterly growth in the same period last fiscal year. Wall Street analysts have also projected the company’s year-on-year revenue for 2021 to grow to $1.41 billion, representing a 4.00% jump on that reported in the last financial year.

Revisions could be used as tool to get short term price movement insight, and for the company that in the past seven days was no upward and no downward review(s). Turning to the stock’s technical picture we see that short term indicators suggest on average that INFN is a 50% Sell. On the other hand, the stock is on average a 50% Sell as suggested by medium term indicators while long term indicators are putting the stock in Hold category.

12 analyst(s) have given their forecast ratings for the stock on a scale of 1.00-5.00 for a strong buy to strong sell recommendation. A total of 5 analyst(s) rate the stock as a Hold, 5 recommend INFN as a Buy and 0 give it an Overweight rating. Meanwhile, 0 analyst(s) rate the stock as Underweight and 2 say it is a Sell. As such, the average rating for the stock is Hold which could provide an opportunity for investors keen on increasing their holdings of the company’s stock.

INFN’s current price about 4.23% and 3.83% off the 20-day and 50-day simple moving averages respectively. The Relative Strength Index (RSI, 14) currently prints 55.86, while 7-day volatility ratio is 3.39% and 4.36% in the 30-day chart. Further, Infinera Corporation (INFN) has a beta value of 1.03, and an average true range (ATR) of 0.38. Analysts have given the company’s stock an average 52-week price target of $10.27, forecast between a low of $6.00 and high of $15.00. Looking at the price targets, the low is 31.9% off recent price level in today’s trading while to achieve the yearly target high, it has to move -70.26%. Nonetheless, investors will most likely welcome a -13.51% jump to $10.00 which is the analysts’ median price.

In the market, a comparison of Infinera Corporation (INFN) and its peers suggest the former has performed considerably stronger. Data shows INFN’s intraday price has changed 7.12% today and -13.11% over the past year. Comparatively, Extreme Networks Inc. (EXTR) has moved 1.24% so far today and only 45.09% in the past 12 months. Looking at another peer, we see that Juniper Networks Inc. (JNPR) price has gained 1.08% on the day. However, the stock is 43.14% off its price today a year ago. Moreover, ADTRAN Inc. (ADTN) is also up 0.24% in today’s trading while keeping a an uptrend of 18.88% over the past year. Elsewhere, the overall performance for the S&P 500 and Dow Jones Industrial shows that the indexes are up 1.05% and 0.72% respectively on the day as seen in early trades.

If we refocus on Infinera Corporation (NASDAQ:INFN), historical trading data shows that trading volumes averaged 1.7 million over the past 10 days and 2.14 million over the past 3 months. The company’s latest data on shares outstanding shows there are 210.91 million shares.

The 0.50% of Infinera Corporation’s shares are in the hands of company insiders while institutional holders own 96.80% of the company’s shares. Also important is the data on short interest which shows that short shares stood at 23.72 million on Dec 14, 2021, giving us a short ratio of 10.56. The data shows that as of Dec 14, 2021 short interest in Infinera Corporation (INFN) stood at 11.25% of shares outstanding, with shares short rising to 21.93 million registered in Nov 14, 2021. Current price change has pushed the stock -14.29% YTD, which shows the potential for further growth is there. It is this reason that could see investor optimism for the INFN stock continues to rise going into the next quarter.

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