ADTRAN (NASDAQ:ADTN) Trading Down 9.1% - Here's What Happened

Key Points

• Shares of ADTRAN Holdings, Inc. fell by 9.1%, with last traded prices at $8.61, following a 77% decline in trading volume.
• Analysts have mixed ratings on ADTRAN's stock, with a consensus price target of $12.00, alongside recent upgrades to a "strong-buy" rating from Wall Street Zen.
• ADTRAN reported $0.03 EPS for its latest quarter, surpassing expectations, although it has a negative net margin of 14.58% and is projected to have -0.5 EPS for the current fiscal year.

Shares of ADTRAN Holdings, Inc. (NASDAQ:ADTN - Get Free Report) fell 9.1% during trading on Tuesday . The stock traded as low as $8.57 and last traded at $8.61. 250,013 shares changed hands during trading, a decline of 77% from the average session volume of 1,102,568 shares. The stock had previously closed at $9.47.

Analyst Ratings Changes

Several research analysts have issued reports on ADTN shares. Rosenblatt Securities decreased their target price on shares of ADTRAN from $15.00 to $11.00 and set a "buy" rating for the company in a report on Tuesday, April 22nd. Needham & Company LLC reduced their target price on ADTRAN from $14.00 to $12.00 and set a "buy" rating for the company in a report on Friday, May 9th. Wall Street Zen raised ADTRAN from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 2nd. Finally, Wolfe Research assumed coverage on shares of ADTRAN in a research note on Monday, July 7th. They set a "peer perform" rating on the stock. One equities research analyst has rated the stock with a hold rating, four have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $12.00.

ADTRAN Stock Performance

The business's 50 day simple moving average is $8.78 and its 200 day simple moving average is $8.98. The company has a current ratio of 1.96, a quick ratio of 1.18 and a debt-to-equity ratio of 1.12. The company has a market cap of $689.83 million, a P/E ratio of -6.58 and a beta of 1.30.

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 business had revenue of $265.07 million during 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 quarterly revenue was up 17.3% on a year-over-year basis. During the same quarter last year, the firm earned ($0.24) earnings per share. Sell-side analysts predict that ADTRAN Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. GAMMA Investing LLC grew its position in ADTRAN by 762.1% in the 1st quarter. GAMMA Investing LLC now owns 27,355 shares of the communications equipment provider's stock valued at $239,000 after acquiring an additional 24,182 shares during the last quarter. Lisanti Capital Growth LLC purchased a new stake in ADTRAN in the 1st quarter valued at about $1,880,000. American Century Companies Inc. grew its stake in ADTRAN by 53.5% in the 4th quarter. American Century Companies Inc. now owns 172,100 shares of the communications equipment provider's stock worth $1,434,000 after acquiring an additional 59,985 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of ADTRAN by 591.5% in the fourth quarter. JPMorgan Chase & Co. now owns 863,807 shares of the communications equipment provider's stock valued at $7,196,000 after purchasing an additional 738,893 shares during the period. Finally, BNP Paribas Financial Markets bought a new position in ADTRAN in the fourth quarter worth approximately $399,000. 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.