ADTRAN (NASDAQ:ADTN) Lowered to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded ADTRAN from “Buy” to “Hold,” while analysts’ overall consensus is also “Hold” with a $14.67 target price.
• ADTRAN shares opened at $7.56, near their 52-week low of $7.11 and well below the $19.98 high; several analysts recently lowered their price targets.
• The company missed quarterly earnings and revenue estimates, reporting $0.04 in EPS versus $0.10 expected and $281.15 million in revenue versus $290.19 million, despite 6% year-over-year revenue growth.

ADTRAN (NASDAQ:ADTN - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

Other equities research analysts also recently issued reports about the stock. Craig Hallum set a $12.00 price target on shares of ADTRAN in a research note on Wednesday. Zacks Research cut shares of ADTRAN from a "hold" rating to a "strong sell" rating in a research report on Tuesday. Needham & Company LLC reduced their target price on ADTRAN from $18.00 to $14.00 and set a "buy" rating for the company in a research note on Thursday, July 23rd. Rosenblatt Securities decreased their target price on ADTRAN from $20.00 to $15.00 and set a "buy" rating for the company in a research report on Wednesday. Finally, Northland Securities set a $15.00 price target on ADTRAN in a research note on Wednesday. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, ADTRAN currently has an average rating of "Hold" and a consensus target price of $14.67.

ADTRAN Stock Performance

Shares of ADTN stock opened at $7.56 on Friday. The company has a market cap of $615.99 million, a price-to-earnings ratio of -27.00 and a beta of 1.47. ADTRAN has a 52 week low of $7.11 and a 52 week high of $19.98. The company has a quick ratio of 1.18, a current ratio of 1.79 and a debt-to-equity ratio of 1.69. The firm has a 50 day moving average of $12.79 and a 200-day moving average of $12.70.

ADTRAN (NASDAQ:ADTN - Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The communications equipment provider reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.10 by ($0.06). ADTRAN had a negative net margin of 2.29% and a positive return on equity of 14.24%. The company had revenue of $281.15 million during the quarter, compared to the consensus estimate of $290.19 million. The company's quarterly revenue was up 6.0% on a year-over-year basis. On average, equities analysts forecast that ADTRAN will post 0.23 earnings per share for the current year.

Hedge Funds Weigh In On ADTRAN

A number of hedge funds have recently added to or reduced their stakes in ADTN. Arrowstreet Capital Limited Partnership raised its holdings in shares of ADTRAN by 60.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 455,647 shares of the communications equipment provider's stock valued at $5,732,000 after purchasing an additional 171,145 shares during the last quarter. Heartland Advisors Inc. bought a new position in shares of ADTRAN during the first quarter valued at about $9,435,000. Sei Investments Co. boosted its holdings in ADTRAN by 162.0% during the first quarter. Sei Investments Co. now owns 1,105,110 shares of the communications equipment provider's stock worth $13,902,000 after purchasing an additional 683,262 shares during the last quarter. Kovack Advisors Inc. boosted its holdings in ADTRAN by 6.4% during the fourth quarter. Kovack Advisors Inc. now owns 753,550 shares of the communications equipment provider's stock worth $6,669,000 after purchasing an additional 45,650 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in ADTRAN in the 4th quarter worth about $563,000. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source