B. Riley Securities Downgrades Ribbon Communications (NASDAQ:RBBN) to Neutral

Ribbon Communications (NASDAQ:RBBN) was downgraded by equities researchers at B. Riley Securities from a “buy” rating to a “neutral” rating in a research note issued to investors on Friday, Marketbeat reports. They currently have a $2.90 price target on the communications equipment provider’s stock. B. Riley Securities’ target price points to a potential upside of 47.96% from the stock’s previous close.

RBBN has been the subject of a number of other reports. Northland Securities set a $4.00 target price on Ribbon Communications in a research report on Friday. Rosenblatt Securities decreased their target price on shares of Ribbon Communications from $6.00 to $4.00 and set a “buy” rating for the company in a research report on Friday. Citizens Jmp dropped their price target on Ribbon Communications from $6.00 to $4.00 and set a “market outperform” rating on the stock in a research note on Friday. Wall Street Zen lowered shares of Ribbon Communications from a “buy” rating to a “hold” rating in a report on Saturday, October 25th. Finally, Citigroup reiterated an “outperform” rating on shares of Ribbon Communications in a report on Friday. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $3.97.

Ribbon Communications Price Performance

RBBN stock opened at $1.96 on Friday. The company has a current ratio of 1.43, a quick ratio of 1.16 and a debt-to-equity ratio of 0.91. The company has a 50-day moving average price of $2.82 and a 200 day moving average price of $3.36. Ribbon Communications has a 12 month low of $1.80 and a 12 month high of $5.38. The stock has a market cap of $346.14 million, a PE ratio of 8.91 and a beta of 1.07.

Ribbon Communications (NASDAQ:RBBN) last issued its quarterly earnings results on Thursday, February 5th. The communications equipment provider reported $0.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.48. Ribbon Communications had a return on equity of 27.48% and a net margin of 4.69%.The firm had revenue of $227.32 million during the quarter, compared to analyst estimates of $241.35 million. During the same period last year, the company earned $0.16 EPS. Ribbon Communications’s quarterly revenue was down 9.6% compared to the same quarter last year. Equities research analysts anticipate that Ribbon Communications will post 0.18 earnings per share for the current year.

Hedge Funds Weigh In On Ribbon Communications

A number of hedge funds have recently made changes to their positions in the company. State of Alaska Department of Revenue purchased a new position in Ribbon Communications in the 3rd quarter valued at $29,000. Kathmere Capital Management LLC purchased a new stake in shares of Ribbon Communications in the fourth quarter valued at approximately $29,000. Tower Research Capital LLC TRC grew its position in shares of Ribbon Communications by 453.3% in the second quarter. Tower Research Capital LLC TRC now owns 10,025 shares of the communications equipment provider’s stock valued at $40,000 after purchasing an additional 8,213 shares in the last quarter. Indivisible Partners acquired a new stake in shares of Ribbon Communications in the fourth quarter valued at approximately $30,000. Finally, Schonfeld Strategic Advisors LLC purchased a new position in Ribbon Communications during the third quarter worth approximately $41,000. Institutional investors and hedge funds own 70.92% of the company’s stock.

More Ribbon Communications News

Here are the key news stories impacting Ribbon Communications this week:

• Positive Sentiment: Q4 EPS materially beat expectations — Ribbon reported $0.59 EPS vs. a consensus ~$0.11, driven by margin items and stronger profitability metrics. This is a near-term positive for earnings credibility. Article Title
• Positive Sentiment: Company highlights: PR release cites strong cash flow, bookings from expanding voice-modernization customers and >25% growth with U.S. Tier 1 service providers; Ribbon says it’s targeting expansion into AI and defense markets — potential longer-term growth drivers. Article Title
• Neutral Sentiment: Earnings call/transcripts and slide deck are available for deeper detail on project timing, backlog and mix — useful for investors wanting management’s commentary on the weak revenue cadence. Article Title
• Neutral Sentiment: Outlook nuance: Seeking Alpha and company materials show Ribbon projecting up to ~$875M for 2026 revenue “amid a cautious outlook” — management is signaling opportunity (voice modernization) but also caution on timing. Article Title
• Negative Sentiment: Revenue miss and weak guidance drove the selloff — Q4 revenue was $227.3M (below estimates) and management set 1Q revenue guidance of $160–170M vs. a ~$196M consensus and FY revenue guidance $850–865M vs. ~$905M expected. That guidance shortfall is the primary negative catalyst. Article Title
• Negative Sentiment: Analyst reactions: B. Riley downgraded RBBN from Buy to Neutral (PT $2.90) and several firms (Rosenblatt, Citizens/JMP) trimmed price targets to $4 (some kept Buy/Outperform). The mix of downgrades and PT cuts reflects investor concern about near-term revenue visibility. Article Title Article Title

Ribbon Communications Company Profile

Ribbon Communications Inc is a global provider of real-time communications software and network solutions for service providers and enterprises. The company’s offerings address the full life cycle of voice, video and data transmission across fixed, mobile and cloud environments. Ribbon’s technology portfolio is designed to enable secure, intelligent and interoperable communications in applications such as unified communications, contact centers, wholesale VoIP interconnect and next-generation 5G networks.

Ribbon’s product suite includes session border controllers (SBCs), which secure and interwork IP voice and multimedia sessions; Diameter signaling controllers for 4G/5G policy and charging control; network edge virtualization platforms; and analytics engines for service assurance and fraud management.