D.A. Davidson Downgrades Brocade to Hold

By Ryan Adsit

D.A. Davidson analyst Kevin Reevey downgraded Brocade (NASDAQ: BRCD) to Hold today. The company’s shares closed yesterday at $12.32, close to its 52-week high of $12.42.

According to TipRanks.com, Reevey is a 3-star analyst with an average return of 5.1% and a 66.7% success rate. Reevey covers the Financial sector, focusing on stocks such as Mutualfirst Financial Inc., Lakeland Financial Corp., and Wintrust Financial Corp.

Currently, the analyst consensus on Brocade is Hold and the average price target is $11.33, representing a -8.0% downside.

In a report released yesterday, Robert W. Baird also upgraded the stock to Hold with a $13 price target.

Brocade’s market cap is currently $4.94B and has a P/E ratio of 22. The company has a book value ratio of 2.0081.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BRCD in relation to earlier this year. Most recently, in September 2016, William Krause, a Director at BRCD bought 20,000 shares for a total of $176,000.

Brocade Communications Systems, Inc. engages in the provision of innovative network solutions. It supplies networking hardware and software, including Storage Area Networking (SAN) solutions and Internet Protocol (IP) networking solutions for businesses and organizations worldwide. It operates through the following segments: SAN Products, IP Networking Products, and Global Services. The SAN Products segments include infrastructure products and solutions that assist customers in the development and delivery of storage and server consolidation, disaster recovery and data security, and in meeting compliance issues regarding data management. These products are used to build storage area networks and are generally used in conjunction with servers and storage subsystems, SAN interconnection components such as host bus adapters and server and storage management software applications and tools. The IP Networking segments products include Layer 2 and Layer 3 Ethernet switches and routers that are designed to connect users over private and public networks, including local area, metro, and within and across global data centers. Global Services segment include break/fix maintenance, installation, consulting, network management and software maintenance, and post-contract customer support revenue. Brocade Communications Systems was founded by Paul R. Bonderson, Jr., Kumar Malavalli and Seth D. Nieman on August 24, 1995 and is headquartered in San Jose, CA.