ADTRAN (NASDAQ:ADTN) Price Target Lowered to $15.00 at Rosenblatt Securities

Key Points

• Rosenblatt Securities lowered ADTRAN’s price target from $20 to $15 but maintained a “buy” rating, implying roughly 71% upside from the prior close. The stock has a “Moderate Buy” consensus rating and a $17.20 average target.
• ADTRAN’s latest quarter showed 6% year-over-year revenue growth to $281.15 million, but adjusted EPS of $0.04 missed the $0.10 consensus and revenue fell short of estimates. The company remains unprofitable on a GAAP basis, while management cited customer spending constraints.
• Despite near-term profitability concerns, optical networking growth and a successful live 50G PON trial in Japan support ADTRAN’s longer-term broadband infrastructure outlook. Institutional investors and hedge funds own approximately 80.6% of the stock.

ADTRAN (NASDAQ:ADTN - Get Free Report) had its price objective cut by equities researchers at Rosenblatt Securities from $20.00 to $15.00 in a research note issued on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the communications equipment provider's stock. Rosenblatt Securities' price objective suggests a potential upside of 71.23% from the stock's previous close.

ADTN has been the subject of a number of other research reports. Wall Street Zen cut ADTRAN from a "strong-buy" rating to a "buy" rating in a research note on Tuesday, July 28th. Needham & Company LLC lowered their target price on shares of ADTRAN from $18.00 to $14.00 and set a "buy" rating on the stock in a research report on Thursday, July 23rd. B. Riley Financial reaffirmed a "buy" rating and issued a $21.00 target price (down from $23.00) on shares of ADTRAN in a report on Thursday, July 23rd. Northland Securities set a $18.00 target price on shares of ADTRAN in a report on Wednesday, May 6th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of ADTRAN in a research report on Tuesday, June 30th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $17.20.

ADTRAN Stock Down 1.1%

ADTN opened at $8.76 on Wednesday. ADTRAN has a one year low of $7.11 and a one year high of $19.98. The company has a debt-to-equity ratio of 1.59, a quick ratio of 1.18 and a current ratio of 1.77. The stock has a market capitalization of $713.50 million, a P/E ratio of -22.46 and a beta of 1.47. The business's 50-day simple moving average is $13.39 and its 200-day simple moving average is $12.76.

ADTRAN (NASDAQ:ADTN - Get Free Report) last announced its earnings results on Monday, August 3rd. The communications equipment provider reported $0.04 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.10 by ($0.06). The firm had revenue of $281.15 million during the quarter, compared to analyst estimates of $290.19 million. ADTRAN had a negative net margin of 3.18% and a positive return on equity of 10.94%. ADTRAN's revenue was up 6.0% on a year-over-year basis. Analysts anticipate that ADTRAN will post 0.23 EPS for the current year.

Institutional Trading of ADTRAN

A number of hedge funds have recently added to or reduced their stakes in ADTN. Quarry LP acquired a new position in shares of ADTRAN in the third quarter valued at approximately $36,000. Kestra Advisory Services LLC acquired a new stake in shares of ADTRAN during the fourth quarter worth $36,000. ST Germain D J Co. Inc. lifted its holdings in shares of ADTRAN by 100.0% during the fourth quarter. ST Germain D J Co. Inc. now owns 5,000 shares of the communications equipment provider's stock worth $43,000 after purchasing an additional 2,500 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in shares of ADTRAN during the fourth quarter worth $47,000. Finally, Freestone Grove Partners LP purchased a new position in ADTRAN in the 4th quarter valued at $87,000. 80.56% of the stock is owned by institutional investors and hedge funds.

More ADTRAN News

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: Second-quarter revenue increased 6.1% year over year to $281.1 million, while non-GAAP operating margin was positive at 3.8%. Management also reported $25.9 million in operating cash flow, suggesting some improvement in operating execution. ADTRAN Holdings second-quarter financial results
• Positive Sentiment: Optical networking sales growth and a developing innovation pipeline are supporting the company’s longer-term outlook, according to earnings coverage. ADTRAN Q2 earnings coverage
• Positive Sentiment: ADTRAN and Japan’s TOHKnet completed Japan’s first live 50G PON trial, demonstrating that 50G PON, XGS-PON and EPON can operate on the same fiber. The trial may strengthen ADTRAN’s positioning as telecom operators upgrade network capacity while preserving existing infrastructure. TOHKnet and ADTRAN 50G PON trial
• Neutral Sentiment: The earnings call presented a mixed outlook: management highlighted growth opportunities but also pointed to customer spending constraints and maintained a cautious tone, limiting the near-term catalyst from the revenue improvement. ADTRAN earnings call: growth, constraints and caution
• Negative Sentiment: Adjusted earnings per share came in at $0.04, below the $0.10 analyst consensus, and revenue also missed expectations of approximately $290.2 million. GAAP results showed a $0.13 diluted loss per share and a negative operating margin, reinforcing profitability concerns. ADTRAN earnings report
• Negative Sentiment: Zacks added ADTN to its Rank #5, or “Strong Sell,” list on August 5. That downgrade-style signal may add selling pressure, particularly after the earnings miss and cautious call commentary. Zacks Strong Sell stocks for August 5

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.

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.

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