ADTRAN (NASDAQ:ADTN) Given Buy Rating at Rosenblatt Securities

Key Points

• Rosenblatt Securities reaffirmed its Buy rating on ADTRAN and kept a $20 price target, implying about 91% upside from the prior close.
• Recent analyst sentiment is mixed overall: ADTRAN’s consensus rating remains Moderate Buy with an average target of $17.20, though some firms have lowered targets while others have maintained bullish views.
• ADTRAN’s latest earnings beat expectations with $0.14 EPS and revenue of $286.09 million, but the company also recently cut its Q2 revenue outlook and issued a softer Q3 guidance than analysts expected.

ADTRAN (NASDAQ:ADTN - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Rosenblatt Securities in a research note issued on Thursday,Benzinga reports. They currently have a $20.00 target price on the communications equipment provider's stock. Rosenblatt Securities' price objective would indicate a potential upside of 91.39% from the stock's previous close.

Other research analysts have also recently issued research reports about the company. Needham & Company LLC cut their target price on ADTRAN from $18.00 to $14.00 and set a "buy" rating on the stock in a research note on Thursday. Evercore initiated coverage on ADTRAN in a report on Tuesday, April 14th. They set an "outperform" rating and a $18.00 price objective for the company. B. Riley Financial reaffirmed a "buy" rating on shares of ADTRAN in a research report on Friday, May 1st. Northland Securities set a $18.00 target price on ADTRAN in a research note on Wednesday, May 6th. Finally, Wall Street Zen upgraded ADTRAN from a "buy" rating to a "strong-buy" rating in a research report on Monday. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $17.20.

ADTRAN Price Performance

ADTRAN stock opened at $10.45 on Thursday. ADTRAN has a 12-month low of $7.11 and a 12-month high of $19.98. The company has a current ratio of 1.77, a quick ratio of 1.18 and a debt-to-equity ratio of 1.59. The firm has a 50-day moving average price of $14.50 and a 200-day moving average price of $12.75. The firm has a market capitalization of $851.15 million, a PE ratio of -26.79 and a beta of 1.44.

ADTRAN (NASDAQ:ADTN - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The communications equipment provider reported $0.14 EPS for the quarter, beating the consensus estimate of $0.09 by $0.05. The company had revenue of $286.09 million for the quarter, compared to the consensus estimate of $285.48 million. ADTRAN had a negative net margin of 3.18% and a positive return on equity of 10.94%. The firm's revenue was up 15.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.03 EPS. As a group, equities research analysts forecast that ADTRAN will post 0.43 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Assenagon Asset Management S.A. increased its holdings in ADTRAN by 100.4% during the 2nd quarter. Assenagon Asset Management S.A. now owns 917,754 shares of the communications equipment provider's stock worth $12,757,000 after purchasing an additional 459,802 shares during the period. Bank of America Corp DE raised its holdings in shares of ADTRAN by 12.4% in the first quarter. Bank of America Corp DE now owns 367,226 shares of the communications equipment provider's stock valued at $4,620,000 after acquiring an additional 40,595 shares in the last quarter. Quantinno Capital Management LP raised its holdings in shares of ADTRAN by 18.7% in the first quarter. Quantinno Capital Management LP now owns 52,455 shares of the communications equipment provider's stock valued at $660,000 after acquiring an additional 8,281 shares in the last quarter. Entropy Technologies LP lifted its stake in ADTRAN by 53.6% in the first quarter. Entropy Technologies LP now owns 15,793 shares of the communications equipment provider's stock worth $199,000 after acquiring an additional 5,510 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its stake in ADTRAN by 60.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 455,647 shares of the communications equipment provider's stock worth $5,732,000 after acquiring an additional 171,145 shares during the period. Institutional investors own 80.56% of the company's stock.

Key Headlines Impacting ADTRAN

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: Despite the selloff, one article noted that analysts still have a consensus target price of $18.00 for ADTRAN, which suggests some longer-term upside if execution improves. ADTRAN Holdings, Inc. NASDAQ: ADTN Receives $18.00 Consensus Target Price from Analysts
• Neutral Sentiment: ADTRAN announced preliminary second-quarter 2026 results, including unaudited revenue and earnings figures, which are the basis for the market’s reaction. ADTRAN Holdings, Inc. announces certain preliminary second quarter 2026 results
• Neutral Sentiment: The company also updated its second- and third-quarter guidance, signaling a weaker revenue and EPS outlook than Wall Street expected. Why Adtran Stock Withered on Wednesday
• Negative Sentiment: ADTRAN cut its second-quarter revenue outlook to about $280 million-$282 million and guided EPS to $0.03-$0.05, both well below analyst expectations, raising concerns about demand and profitability. ADTRAN falls in premarket on Q2 preliminary revenue miss, soft Q3 outlook
• Negative Sentiment: Johnson Fistel launched an investigation into possible securities law violations at ADTRAN, adding legal overhang and investor uncertainty. Johnson Fistel Investigates ADTRAN Holdings, Inc. (ADTN) for Potential Securities Law Violations

ADTRAN Company Profile

ADTRAN, Inc is a global provider of networking and communications equipment, specializing in broadband access solutions for service providers, enterprises and government organizations. Founded in 1985 and headquartered in Huntsville, Alabama, the company develops and delivers hardware and software platforms that enable high-speed Internet access over fiber, copper and wireless networks. Its core offerings include fiber access and aggregation equipment, Ethernet switches, customer premises equipment (CPE) and network management systems designed to support both legacy and next-generation broadband deployments.

The company's product portfolio encompasses a broad range of optical line terminals (OLTs), optical network terminals (ONTs), multiservice access gateways and virtualized access solutions.

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