Analyst: Tellabs, Inc. (NASDAQ:TLAB) has had a lack of catalysts lately
Tellabs, Inc. (NASDAQ:TLAB), which hit a 19-year low last week, has decided to actively buyback almost $224.6 million worth of its stock to win back shareholders’ support. The telephone-network equipment manufacturer in October predicted a fall of as much as 24 percent in fourth-quarter sales versus last year, which would make it the eighth straight quarter of sales fall.
Dialectic Capital Management LLC, Third Avenue Management LLC and other investors are seeking a greater say in company decisions after the sales decline and the diagnosis of cancer for two top executives.
Raymond James & Associates Inc. analyst Simon Leopold revealed that the current share price of TLAB is trading only 9 percent above its level of cash on hand. The New York-based analyst said that Tellabs (TLAB) has had a lack of catalysts lately and the continuation of repurchases demonstrates confidence.
Tellabs, Inc. (NASDAQ:TLAB) kept volume of 3.82 million shares which was higher than its average volume of 2.70 million shares. The stock after opening at $2.85 touched high price of $2.87 and settled at $2.78 after gaining 2.21%.
In the liquidity ratios, the company booked 3.38 as current ratio while its debt to equity ratio was 0.14. The Company had overall cash of $1.14 billion at hand and a book value per share as $4.04 in the most recent quarter.
Measuring Tellabs, Inc.’s competitiveness with another firm across its sector, TLAB stock is lagging behind from its 200 day moving average with -20.62% while the stock is moving down from SMA50 with -15.06% and traded at lowest level during the previous trading session at $2.76.
Shares of the company hit the 52 weeks low range with $2.70 per share while its 52 weeks high level was $4.41, which compares with last trade ending price of $2.78.
Its competitors Alcatel Lucent SA (ADR) (NYSE:ALU) shares were down from 200 day moving average of -36.86% and traded as low as $0.97 per share in the last session and Cisco Systems, Inc. (NASDAQ:CSCO) shares were up from 200 day moving average of 0.78% and traded as low as $18.07 per share in the last session.