Ribbon Communications (NASDAQ:RBBN) Stock Rating Lowered by B.Riley Securit

Ribbon Communications (NASDAQ:RBBN) was downgraded by stock analysts at B.Riley Securit from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Friday,Zacks.com reports.

Other analysts have also recently issued research reports about the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Ribbon Communications in a research report on Thursday, January 22nd. B. Riley Financial downgraded Ribbon Communications from a “buy” rating to a “neutral” rating and set a $2.90 price objective for the company. in a research note on Friday. Rosenblatt Securities lowered their target price on Ribbon Communications from $6.00 to $4.00 and set a “buy” rating on the stock in a research note on Friday. Northland Securities set a $4.00 target price on Ribbon Communications in a report on Friday. Finally, Citizens Jmp reduced their price target on shares of Ribbon Communications from $6.00 to $4.00 and set a “market outperform” rating for the company in a research report on Friday. Four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Ribbon Communications has a consensus rating of “Hold” and a consensus price target of $3.97.

Ribbon Communications Stock Performance

Ribbon Communications stock opened at $1.96 on Friday. Ribbon Communications has a fifty-two week low of $1.80 and a fifty-two week high of $5.38. The firm’s 50 day simple moving average is $2.82 and its 200-day simple moving average is $3.36. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.43 and a quick ratio of 1.16. The company has a market cap of $346.14 million, a P/E 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 EPS for the quarter, beating the consensus estimate of $0.11 by $0.48. Ribbon Communications had a net margin of 4.69% and a return on equity of 27.48%. The business had revenue of $227.32 million during the quarter, compared to the consensus estimate of $241.35 million. During the same quarter in the prior year, the firm earned $0.16 EPS. The firm’s quarterly revenue was down 9.6% on a year-over-year basis. As a group, equities research analysts predict that Ribbon Communications will post 0.18 EPS for the current year.

Hedge Funds Weigh In On Ribbon Communications

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RBBN. Vanguard Group Inc. grew its position in Ribbon Communications by 2.2% in the third quarter. Vanguard Group Inc. now owns 7,691,070 shares of the communications equipment provider’s stock worth $29,226,000 after acquiring an additional 166,683 shares in the last quarter. Royce & Associates LP boosted its holdings in Ribbon Communications by 17.2% in the third quarter. Royce & Associates LP now owns 4,305,470 shares of the communications equipment provider’s stock worth $16,361,000 after purchasing an additional 633,035 shares in the last quarter. Geode Capital Management LLC increased its position in Ribbon Communications by 7.9% during the second quarter. Geode Capital Management LLC now owns 2,303,256 shares of the communications equipment provider’s stock worth $9,238,000 after buying an additional 169,402 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its position in Ribbon Communications by 24.1% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,476,053 shares of the communications equipment provider’s stock worth $5,919,000 after buying an additional 286,803 shares during the last quarter. Finally, First Eagle Investment Management LLC raised its holdings in Ribbon Communications by 0.8% during the third quarter. First Eagle Investment Management LLC now owns 1,033,914 shares of the communications equipment provider’s stock valued at $3,929,000 after buying an additional 8,000 shares in the last quarter. Institutional investors own 70.92% of the company’s stock.

Key Stories Impacting Ribbon Communications

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.