ADTRAN (NASDAQ:ADTN) Sees Large Volume Increase - Should You Buy?

Key Points

• ADTRAN saw a significant increase in trading volume, with approximately 1.55 million shares traded, marking a 37% increase from the previous day.
• The company's stock currently holds a consensus rating of "Moderate Buy," with an average price target of $12.00 despite a recent drop of 1.2% in stock price to $8.79.
• ADTRAN reported a revenue increase of 17.3% year-over-year but missed earnings expectations with a loss of ($0.26) per share for the last quarter.

ADTRAN Holdings, Inc. (NASDAQ:ADTN - Get Free Report) shares saw an uptick in trading volume on Wednesday . 1,552,764 shares changed hands during mid-day trading, an increase of 37% from the previous session's volume of 1,135,251 shares.The stock last traded at $8.79 and had previously closed at $8.86.

Wall Street Analyst Weigh In

Several research firms recently issued reports on ADTN. B. Riley started coverage on ADTRAN in a report on Thursday. They issued a "buy" rating and a $16.00 price objective on the stock. Wolfe Research started coverage on ADTRAN in a research report on Monday, July 7th. They set a "peer perform" rating for the company. Finally, Wall Street Zen cut ADTRAN from a "buy" rating to a "hold" rating in a report on Saturday, August 30th. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $12.80.

ADTRAN Price Performance

The company has a debt-to-equity ratio of 1.12, a current ratio of 1.96 and a quick ratio of 1.19. The stock has a market capitalization of $759.81 million, a price-to-earnings ratio of -7.25 and a beta of 1.39. The business's fifty day moving average price is $9.29 and its 200-day moving average price is $8.64.

ADTRAN (NASDAQ:ADTN - Get Free Report) last posted its earnings results on Monday, August 4th. The communications equipment provider reported ($0.26) earnings per share for the quarter, missing analysts' consensus estimates of $0.01 by ($0.27). The firm had revenue of $265.07 million for the quarter, compared to the consensus estimate of $255.57 million. ADTRAN had a negative return on equity of 10.09% and a negative net margin of 11.02%.The business's revenue was up 17.3% on a year-over-year basis. During the same period last year, the company posted ($0.24) EPS. On average, research analysts forecast that ADTRAN Holdings, Inc. will post -0.5 EPS for the current year.

Institutional Trading of ADTRAN

A number of large investors have recently made changes to their positions in the stock. Cape Investment Advisory Inc. purchased a new position in ADTRAN during the second quarter valued at approximately $27,000. FNY Investment Advisers LLC purchased a new stake in shares of ADTRAN during the first quarter valued at about $65,000. New York State Teachers Retirement System acquired a new position in shares of ADTRAN during the second quarter valued at about $65,000. Park Avenue Securities LLC acquired a new position in ADTRAN in the 2nd quarter worth approximately $91,000. Finally, Ballentine Partners LLC purchased a new position in shares of ADTRAN during the 1st quarter valued at approximately $94,000. 80.56% of the stock is currently owned by institutional investors.

ADTRAN Company Profile

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.