ADTRAN (NASDAQ:ADTN) Hits New 52-Week High - Still a Buy?

Key Points

• Shares of ADTRAN hit a new 52-week high, trading as high as $15.34 (last $15.23) on Tuesday with about 108,565 shares changing hands and the stock up roughly 3.1%.
• Analyst sentiment is mixed: ADTN has a consensus Hold rating with an average target of $17 — four Buys, two Holds and one Sell — while recent firm notes range from Weiss’s Sell to Evercore’s Outperform ($18) and Rosenblatt’s Buy ($16).
• Recent results topped expectations (Q reported EPS $0.16 vs $0.08 and revenue $291.6M, +20% YoY), but the company still shows a negative net margin (-4.15%) and analysts forecast ~-0.5 EPS for the year; market cap is about $1.25B and debt-to-equity ~1.50.

Shares of ADTRAN Holdings, Inc. (NASDAQ:ADTN - Get Free Report) hit a new 52-week high on Tuesday . The stock traded as high as $15.34 and last traded at $15.23, with a volume of 108565 shares trading hands. The stock had previously closed at $14.97.

Analysts Set New Price Targets

A number of research analysts have recently commented on ADTN shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of ADTRAN in a research note on Thursday, April 2nd. Evercore started coverage on shares of ADTRAN in a research note on Tuesday. They set an "outperform" rating and a $18.00 price objective for the company. Rosenblatt Securities upped their price objective on shares of ADTRAN from $11.00 to $16.00 and gave the company a "buy" rating in a research note on Friday, February 27th. Wall Street Zen downgraded shares of ADTRAN from a "strong-buy" rating to a "buy" rating in a research note on Saturday, March 21st. Finally, Argus raised shares of ADTRAN to a "hold" rating in a research note on Wednesday, March 4th. Four analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, ADTRAN currently has a consensus rating of "Hold" and an average target price of $17.00.

ADTRAN Stock Up 3.1%

The company has a debt-to-equity ratio of 1.50, a quick ratio of 1.16 and a current ratio of 1.76. The firm has a market cap of $1.25 billion, a PE ratio of -30.24 and a beta of 1.23. The stock has a fifty day moving average price of $11.17 and a 200-day moving average price of $9.65.

ADTRAN (NASDAQ:ADTN - Get Free Report) last issued its earnings results on Thursday, February 26th. The communications equipment provider reported $0.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.08 by $0.08. ADTRAN had a positive return on equity of 4.23% and a negative net margin of 4.15%.The business had revenue of $291.56 million during the quarter, compared to analysts' expectations of $281.12 million. The company's revenue was up 20.0% compared to the same quarter last year. Research analysts expect that ADTRAN Holdings, Inc. will post -0.5 EPS for the current year.

Institutional Trading of ADTRAN

A number of institutional investors have recently modified their holdings of the company. Hsbc Holdings PLC grew its holdings in shares of ADTRAN by 29.8% during the 4th quarter. Hsbc Holdings PLC now owns 78,464 shares of the communications equipment provider's stock worth $686,000 after purchasing an additional 18,004 shares during the period. Mackenzie Financial Corp boosted its holdings in ADTRAN by 33.9% in the 4th quarter. Mackenzie Financial Corp now owns 361,607 shares of the communications equipment provider's stock worth $3,194,000 after acquiring an additional 91,457 shares during the period. XTX Topco Ltd boosted its holdings in ADTRAN by 11.8% in the 4th quarter. XTX Topco Ltd now owns 66,690 shares of the communications equipment provider's stock worth $580,000 after acquiring an additional 7,033 shares during the period. Voloridge Investment Management LLC boosted its holdings in ADTRAN by 685.0% in the 4th quarter. Voloridge Investment Management LLC now owns 146,148 shares of the communications equipment provider's stock worth $1,270,000 after acquiring an additional 127,530 shares during the period. Finally, Tudor Investment Corp ET AL boosted its holdings in ADTRAN by 5.6% in the 4th quarter. Tudor Investment Corp ET AL now owns 947,508 shares of the communications equipment provider's stock worth $8,234,000 after acquiring an additional 50,393 shares during the period. Hedge funds and other institutional investors own 80.56% of the company's stock.

About ADTRAN

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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