B. Riley Initiates Coverage on ADTRAN (NASDAQ:ADTN)

Key Points

• Investment analysts at B. Riley have initiated coverage of ADTRAN with a "buy" rating and a price target of $16.00, suggesting a potential upside of 82.44% from its current stock price.
• ADTRAN's recent earnings report showed a significant revenue increase of 17.3% year-over-year, although it missed the consensus EPS estimate, reporting a loss of ($0.26) per share.
• Institutional investors have notably increased their stakes in ADTRAN, with 80.56% of the stock now owned by these investors, indicating strong institutional interest in the company.

B. Riley initiated coverage on shares of ADTRAN (NASDAQ:ADTN - Free Report) in a report published on Thursday, Marketbeat Ratings reports. The brokerage issued a buy rating and a $16.00 price target on the communications equipment provider's stock.

Several other equities research analysts have also commented on ADTN. Wall Street Zen lowered shares of ADTRAN from a "buy" rating to a "hold" rating in a report on Saturday, August 30th. Wolfe Research began coverage on shares of ADTRAN in a report on Monday, July 7th. They issued a "peer perform" rating for the company. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $12.80.

ADTRAN Trading Down 0.8%

Shares of NASDAQ ADTN traded down $0.08 during mid-day trading on Thursday, reaching $9.50. The company had a trading volume of 2,732,581 shares, compared to its average volume of 1,981,680. The company has a current ratio of 1.96, a quick ratio of 1.19 and a debt-to-equity ratio of 1.12. ADTRAN has a 52 week low of $5.59 and a 52 week high of $12.44. The business's 50-day moving average is $9.29 and its 200-day moving average is $8.65. The stock has a market cap of $759.79 million, a price-to-earnings ratio of -7.25 and a beta of 1.39.

ADTRAN (NASDAQ:ADTN - Get Free Report) last issued its earnings results on Monday, August 4th. The communications equipment provider reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to the consensus estimate of $255.57 million. During the same quarter in the previous year, the company earned ($0.24) earnings per share. The firm's revenue was up 17.3% on a year-over-year basis. Equities analysts expect that ADTRAN will post -0.5 earnings per share for the current year.

Hedge Funds Weigh In On ADTRAN

Institutional investors and hedge funds have recently bought and sold shares of the stock. Cape Investment Advisory Inc. purchased a new position in ADTRAN in the 2nd quarter worth approximately $27,000. FNY Investment Advisers LLC acquired a new position in shares of ADTRAN in the 1st quarter valued at approximately $65,000. New York State Teachers Retirement System acquired a new position in shares of ADTRAN in the 2nd quarter valued at approximately $65,000. Park Avenue Securities LLC acquired a new position in shares of ADTRAN in the 2nd quarter valued at approximately $91,000. Finally, Ballentine Partners LLC acquired a new position in shares of ADTRAN in the 1st quarter valued at approximately $94,000. Hedge funds and other institutional investors own 80.56% of the company's stock.

About ADTRAN

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.