Infinera Initiated At Neutral By Wedbush

Analysts at Wedbush initiated coverage of Infinera Corp INFN today by issuing a Neutral rating on the stock and setting a price target of $13.00. Infinera provides optical networking equipment and services to communications providers, internet providers, cable operators, and other network operators worldwide.
The numbers
Infinera’s previous quarterly earnings numbers in October were quite good. The company announced earnings per share (EPS) of $0.11, beating consensus estimates by $0.04. Revenue of $173.60 million also exceeded consensus expectations of $170.90 million. The revenue number represented 22.2 percent growth year-over-year for the quarter.
A troubling sign
In early December, Infinera President David F. Welch sold $433,500 worth of Infinera stock at a price of $14.45. While insider selling is not a completely reliable indication of future stock price, it certainly isn’t reassuring for Infinera shareholders to see management taking profits on shares of stock at these levels.
Downside risk
Infinera’s stock is up 1.3 percent today and is currently trading at around $14.10. The $13.00 price target represents a 7.8 percent downside for the stock from current levels. Infinera’s stock has had an exceptional 2014 so far. The stock is up over 43 percent year to date.
Other recent analyst action
Three other analysts issued ratings on Infinera in November. Zacks downgraded the stock from Outperform to Neutral and provided a $15.30 price target. National Alliance Securities raised their price target for Infinera stock from $13.00 to $15.00. Finally, Stifel Nicolaus issued a Buy rating on the stock and raised their price target from $15.00 to $17.00.