ADTRAN (NASDAQ:ADTN) Trading Down 9.1% Following Weak Earnings

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.

ADTRAN Holdings, Inc. (NASDAQ:ADTN - Get Free Report) traded down 9.1% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $8.57 and last traded at $8.61. 250,013 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 1,102,568 shares. The stock had previously closed at $9.47.

The communications equipment provider reported ($0.26) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.27). The company had revenue of $265.07 million for the quarter, compared to analyst estimates 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 for the quarter was up 17.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.24) earnings per share.

Analyst Ratings Changes

Several analysts recently commented on ADTN shares. Wall Street Zen upgraded shares of ADTRAN from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 2nd. Rosenblatt Securities decreased their price target 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 cut 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. Finally, Wolfe Research began coverage on shares of ADTRAN in a research report 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 assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, ADTRAN currently has an average rating of "Buy" and an average price target of $12.00.

Hedge Funds Weigh In On ADTRAN

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ADTN. Aquatic Capital Management LLC raised its position in ADTRAN by 1,572.5% during the fourth quarter. Aquatic Capital Management LLC now owns 6,690 shares of the communications equipment provider's stock valued at $56,000 after acquiring an additional 6,290 shares in the last quarter. FNY Investment Advisers LLC bought a new position in shares of ADTRAN in the first quarter valued at approximately $65,000. New York State Teachers Retirement System bought a new position in shares of ADTRAN in the second quarter valued at approximately $65,000. Park Avenue Securities LLC bought a new position in shares of ADTRAN in the second quarter valued at approximately $91,000. Finally, Ballentine Partners LLC bought a new position in shares of ADTRAN in the first quarter valued at approximately $94,000. Institutional investors own 80.56% of the company's stock.

ADTRAN Stock Performance

The company has a market cap of $687.03 million, a P/E ratio of -6.56 and a beta of 1.30. The company has a quick ratio of 1.18, a current ratio of 1.96 and a debt-to-equity ratio of 1.12. The stock's 50-day moving average price is $8.81 and its 200 day moving average price is $8.94.

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.