ADTRAN (NASDAQ:ADTN) Receives Buy Rating from B. Riley Financial

Key Points

• B. Riley Financial reiterated a buy rating on ADTRAN and set a $21 price target, which implies more than 100% upside from the prior close, though it lowered its target from $23.
• Analyst sentiment remains mixed but generally positive: several firms recently maintained or adjusted bullish ratings, and the consensus view is still Moderate Buy with an average target price of $18.20.
• ADTRAN’s latest results topped earnings and revenue estimates, with quarterly EPS of $0.14 versus $0.09 expected and revenue up 15.5% year over year, though the shares were trading well below recent averages around $10.34.

ADTRAN (NASDAQ:ADTN - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at B. Riley Financial in a research report issued on Thursday,Benzinga reports. They currently have a $21.00 target price on the communications equipment provider's stock, down from their previous target price of $23.00. B. Riley Financial's price target points to a potential upside of 103.11% from the stock's previous close.

A number of other analysts also recently commented on the stock. Northland Securities set a $18.00 target price on shares of ADTRAN in a report on Wednesday, May 6th. Needham & Company LLC decreased their price target on shares of ADTRAN from $18.00 to $14.00 and set a "buy" rating on the stock in a research report on Thursday. Rosenblatt Securities reaffirmed a "buy" rating and issued a $20.00 price target on shares of ADTRAN in a report on Thursday. Weiss Ratings reiterated a "sell (d-)" rating on shares of ADTRAN in a research report on Tuesday, June 30th. Finally, Evercore assumed coverage on ADTRAN in a research note on Tuesday, April 14th. They set an "outperform" rating and a $18.00 price objective for the company. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $18.20.

ADTRAN Price Performance

Shares of ADTN traded down $0.11 during midday trading on Thursday, reaching $10.34. The stock had a trading volume of 342,520 shares, compared to its average volume of 2,008,130. The company has a debt-to-equity ratio of 1.59, a current ratio of 1.77 and a quick ratio of 1.18. The company has a market capitalization of $842.11 million, a P/E ratio of -26.69 and a beta of 1.44. The firm's 50 day moving average price is $14.50 and its 200-day moving average price is $12.75. ADTRAN has a 52 week low of $7.11 and a 52 week high of $19.98.

ADTRAN (NASDAQ:ADTN - Get Free Report) last released its earnings results on Tuesday, May 5th. The communications equipment provider reported $0.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.09 by $0.05. ADTRAN had a positive return on equity of 10.94% and a negative net margin of 3.18%.The firm had revenue of $286.09 million for the quarter, compared to analyst estimates of $285.48 million. During the same period in the previous year, the company earned $0.03 earnings per share. ADTRAN's revenue was up 15.5% compared to the same quarter last year. On average, analysts forecast that ADTRAN will post 0.43 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ADTRAN

Several institutional investors and hedge funds have recently added to or reduced their stakes in ADTN. Quarry LP purchased a new stake in shares of ADTRAN in the third quarter valued at $36,000. Kestra Advisory Services LLC purchased a new position in shares of ADTRAN during the fourth quarter valued at $36,000. ST Germain D J Co. Inc. raised its position in 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 valued at $43,000 after buying an additional 2,500 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in ADTRAN in the 4th quarter worth about $47,000. Finally, Freestone Grove Partners LP purchased a new stake in ADTRAN in the 4th quarter worth about $87,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

ADTRAN News Summary

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: Rosenblatt Securities reaffirmed its buy rating on ADTRAN and raised its price target to $20.00, implying substantial upside from current levels. Benzinga report
• Positive Sentiment: Needham & Company kept a buy rating on ADTRAN, although it lowered its price target from $18.00 to $14.00, suggesting analysts still see upside despite the recent cut. Benzinga report
• Neutral Sentiment: Analyst consensus still points to a positive outlook overall, with published targets remaining above the current share price. American Banking News report
• Negative Sentiment: ADTRAN’s preliminary Q2 revenue and earnings outlook came in below expectations, and the company also gave a softer Q3 revenue range, fueling concerns about demand and margin pressure. Business Wire report
• Negative Sentiment: The disappointing guidance triggered additional negative coverage and a premarket selloff, with investor attention turning to whether the weaker quarter is a one-off or a sign of a slower recovery. MSN report

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.

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