ADTRAN (NASDAQ:ADTN) Stock Rating Upgraded by Wall Street Zen

Key Points

• ADTRAN has been upgraded by Wall Street Zen from a "buy" rating to a "strong-buy" rating, indicating increased confidence in the stock's potential.
• Institutional investors now own 80.56% of ADTRAN's stock, with significant increases in holdings reported by various firms in recent quarters.
• The company's earnings report showed a 9.5% year-over-year revenue increase, with earnings per share beating analysts' expectations by $0.05.

ADTRAN (NASDAQ:ADTN - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued to clients and investors on Saturday.

A number of other research analysts also recently commented on ADTN. Needham & Company LLC lowered their price objective on shares of ADTRAN from $14.00 to $12.00 and set a "buy" rating on the stock in a research report on Friday, May 9th. Rosenblatt Securities lowered their price objective on shares of ADTRAN from $15.00 to $11.00 and set a "buy" rating on the stock in a research report on Tuesday, April 22nd. Finally, Wolfe Research assumed coverage on shares of ADTRAN in a research report on Monday, July 7th. They issued a "peer perform" rating for the company. One investment analyst has rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $12.00.

ADTRAN Price Performance

Shares of ADTN traded up $0.51 during mid-day trading on Friday, hitting $8.60. The company's stock had a trading volume of 915,825 shares, compared to its average volume of 1,127,329. The firm has a 50-day moving average price of $8.77 and a 200 day moving average price of $8.98. The stock has a market capitalization of $687.43 million, a price-to-earnings ratio of -5.06 and a beta of 1.30. The company has a debt-to-equity ratio of 1.37, a current ratio of 2.02 and a quick ratio of 1.18. ADTRAN has a fifty-two week low of $4.63 and a fifty-two week high of $12.44.

ADTRAN (NASDAQ:ADTN - Get Free Report) last announced its quarterly earnings data 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). The business had revenue of $265.07 million during the quarter, compared to analyst estimates of $255.57 million. ADTRAN had a negative return on equity of 20.07% and a negative net margin of 14.58%. The business's revenue for the quarter was up 17.3% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.24) EPS. On average, research analysts predict that ADTRAN will post -0.5 EPS for the current fiscal year.

Hedge Funds Weigh In On ADTRAN

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ADTN. Versor Investments LP acquired a new stake in ADTRAN during the 2nd quarter valued at approximately $419,000. Kovack Advisors Inc. increased its holdings in ADTRAN by 3.3% in the 2nd quarter. Kovack Advisors Inc. now owns 714,200 shares of the communications equipment provider's stock worth $6,406,000 after acquiring an additional 22,950 shares during the last quarter. Teacher Retirement System of Texas increased its holdings in ADTRAN by 52.4% in the 2nd quarter. Teacher Retirement System of Texas now owns 99,711 shares of the communications equipment provider's stock worth $894,000 after acquiring an additional 34,305 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new position in ADTRAN in the 2nd quarter worth about $2,579,000. Finally, New York State Teachers Retirement System purchased a new position in ADTRAN in the second quarter worth $65,000. 80.56% of the stock is owned by institutional investors.

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.