Is Ciena Corporation (CIEN) A Good Stock To Buy?

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Now, key money managers have jumped into Ciena Corporation (NASDAQ:CIEN) headfirst. Highland Capital Management, managed by James Dondero, initiated the most outsized position in Ciena Corporation (NYSE:CIEN). Highland Capital Management had $10.5 million invested in the company at the end of the quarter. Benjamin J Taylor’s Sophrosyne Capital also initiated a $8.1 million position during the quarter. The other funds with new positions in the stock are Dmitry Balyasny’s Balyasny Asset Management, David Costen Haley’s HBK Investments, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s check out hedge fund activity in other stocks similar to Ciena Corporation (NYSE:CIEN). We will take a look at Dyax Corp. (NASDAQ:DYAX), G-III Apparel Group, Ltd. (NASDAQ:GIII), Mercury General Corporation (NYSE:MCY), and Deluxe Corporation (NYSE:DLX). This group of stocks’ market valuations are closest to CIEN’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DYAX 32 512610 -1
GIII 18 177738 -1
MCY 8 17969 0
DLX 25 148096 0

As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $214 million. That figure was $259 million in CIEN’s case. Dyax Corp. (NASDAQ:DYAX) is the most popular stock in this table. On the other hand Mercury General Corporation (NYSE:MCY) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Ciena Corporation (NYSE:CIEN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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