ADTRAN (NASDAQ:ADTN) Rating Lowered to "Buy" at Wall Street Zen

Key Points

• ADTRAN was downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, indicating a shift in analysts' outlook on the stock.
• Despite the downgrade, ADTRAN has a consensus price target set at $12.00, with most analysts maintaining a positive rating.
• The company's latest earnings report showed a revenue increase of 17.3% year-over-year, but it missed profit expectations, reporting a loss of ($0.26) per share.

Wall Street Zen lowered shares of ADTRAN (NASDAQ:ADTN - Free Report) from a strong-buy rating to a buy rating in a report published on Sunday.

Other equities research analysts have also issued reports about the company. Wolfe Research began coverage on ADTRAN in a research note on Monday, July 7th. They set a "peer perform" rating for the company. Needham & Company LLC decreased their price target on ADTRAN from $14.00 to $12.00 and set a "buy" rating for the company in a research note on Friday, May 9th. Finally, Rosenblatt Securities decreased their price target on ADTRAN from $15.00 to $11.00 and set a "buy" rating for the company in a research note on Tuesday, April 22nd. One research analyst has rated the stock with a hold rating and five have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $12.00.

ADTRAN Stock Performance

NASDAQ:ADTN traded down $0.52 during mid-day trading on Friday, hitting $8.80. 239,734 shares of the company traded hands, compared to its average volume of 1,118,940. The stock's fifty day moving average price is $8.85 and its 200-day moving average price is $8.92. ADTRAN has a one year low of $4.90 and a one year high of $12.44. The company has a quick ratio of 1.19, a current ratio of 1.96 and a debt-to-equity ratio of 1.12. The firm has a market cap of $703.50 million, a price-to-earnings ratio of -6.72 and a beta of 1.30.

ADTRAN (NASDAQ:ADTN - Get Free Report) last released its quarterly earnings data on Monday, August 4th. The communications equipment provider reported ($0.26) earnings per share for the quarter, missing analysts' consensus estimates of $0.01 by ($0.27). ADTRAN had a negative return on equity of 10.09% and a negative net margin of 11.02%. The business had revenue of $265.07 million during the quarter, compared to the consensus estimate of $255.57 million. During the same period last year, the company earned ($0.24) EPS. The business's revenue was up 17.3% on a year-over-year basis. Research analysts anticipate that ADTRAN will post -0.5 earnings per share for the current fiscal year.

Institutional Trading of ADTRAN

A number of institutional investors have recently made changes to their positions in ADTN. Schonfeld Strategic Advisors LLC purchased a new position in ADTRAN in the 4th quarter worth $12,921,000. Royce & Associates LP raised its stake in ADTRAN by 188.5% in the 1st quarter. Royce & Associates LP now owns 1,406,500 shares of the communications equipment provider's stock worth $12,265,000 after acquiring an additional 919,000 shares during the last quarter. Invesco Ltd. raised its stake in ADTRAN by 325.4% in the 1st quarter. Invesco Ltd. now owns 1,183,180 shares of the communications equipment provider's stock worth $10,317,000 after acquiring an additional 905,056 shares during the last quarter. SG Capital Management LLC purchased a new position in ADTRAN in the 2nd quarter worth $7,601,000. Finally, JPMorgan Chase & Co. raised its stake in ADTRAN by 591.5% in the 4th quarter. JPMorgan Chase & Co. now owns 863,807 shares of the communications equipment provider's stock worth $7,196,000 after acquiring an additional 738,893 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company's stock.

ADTRAN Company Profile

ADTRAN Holdings, Inc, through its subsidiaries, provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally. It operates through two segments, Network Solutions, and Services & Support. It offers residential gateways; ethernet passive optical network ONUs; gigabit passive optical network/XGS-PON ONTs; traditional SSE, routers, and switches; edge cloud; carrier ethernet network interface devices; Optical Line Terminals; Packet Aggregation, Copper Access, and Oscilloquartz; optical transport and engine solutions; infrastructure monitoring solution; and training, professional, software, and managed services.