Ciena Corp. (NYSE:CIEN) rose 3.6% amid speculation it could be potentially targeted by an activist investor.
Ciena (CIEN) gained as traders circulated a report that the company could be pursued by an activist due to its relatively high leverage and low revenue growth. The networking company is in the 93rd percentile of companies most likely to be targeted by an activist by the end of the year, according to an Activist Insight report.
An activist may push for the company to pursue a strategic review and an investor could focus on cutting expenses, according to the report. An activist could also look for a board refreshment, though the nomination window for this year’s annual meeting has closed. Ciena (CIEN) shares slid 34% last year and have fallen 5.5% this year.
