Large Inflow of Money Detected in Brocade Communications Systems

Brocade Communications Systems (BRCD) : Wednesdays money flow data in Brocade Communications Systems (BRCD) suggests that the bulls made the most of the weakness in the stock. The inflow of money into the stock on upticks was $6.03 million, whereas, $3.98 million worth of transactions were done on downticks. The ratio between the two, uptick and downtick stood at 1.51, in favor of the bulls. The total money flow into the stock was $2.04 million clearly indicating that the smart money has been buying into the stock on weakness.

In comparison, the money flow in block deals was $3.17 million. The total value of block trades done on upticks was $3.27 million. The value of bearish trades on downticks was only $0.1 million.The up/down ratio in the block trades was a healthy 33.13 in favor of the bulls, suggesting strong buying in the stock by large traders. Brocade Communications Systems (BRCD) fell $0.04 and traded at $8.89, down -0.39% for the day, over previous days close. On a weekly basis, the shares are -2.26% over the previous weeks close.


Also, Major Brokerage house, Baird downgrades its ratings on Brocade Communications Systems (NASDAQ:BRCD). In the latest research report, Baird lowers the target price from $10 per share to $8 per share. According to the latest information available, the shares are now rated Underperform by the analysts at the agency. Previously, the analysts had a Neutral rating on the shares. The rating by the firm was issued on July 14, 2016.

Brocade Communications Systems (NASDAQ:BRCD): During Wednesdays trading session, Bulls were in full control of the stock right from the opening. The stock opened at $9.00 and $8.88 proved to be the low of the day. Continuous buying at higher levels pushed the stock towards an intraday high of $9.03. The buying momentum continued till the end and the stock did not give up its gains. It closed at $9.01, notching a gain of 1.01% for the day. The total traded volume was 8,589,886 . The stock had closed at $8.92 on the previous day.

The stock has recorded a 20-day Moving Average of 1.91% and the 50-Day Moving Average is 2.57%. In a related news, The Securities and Exchange Commission has divulged that Odonnell Ellen, officer (SVP & General Counsel) of Brocade Communications Systems Inc, had unloaded 8,129 shares at an average price of $8.87 in a transaction dated on June 10, 2016. The total value of the transaction was worth $72,104.

Brocade Communications Systems, Inc. (Brocade) is a supplier of networking equipment, including end-to-end Internet Protocol-based Ethernet networking solutions and storage area networking solutions for businesses and organizations of all types and sizes, including global enterprises, and service providers, such as telecommunication firms, cable operators and mobile carriers. Brocade offers networking hardware and software products and services. Its products and services are marketed, sold and supported globally to end-user customers through distribution partners, including original equipment manufacturers, distributors, systems integrators, value-added resellers and directly to end-users by the Brocade direct sales force. The Company operates in four segments: Data Storage, Global Services, IP Layer 2-3 and IP Layer 4-7/ Application Delivery Products.

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