ADTRAN (NASDAQ:ADTN) Shares Gap Down - What's Next?

Key Points

• ADTRAN's stock price gapped down from $10.44 to $9.40, closing at $9.03 after trading, with a volume of nearly 1 million shares.
• Analysts have downgraded the stock from "buy" to "hold," with an average rating of "Moderate Buy" and an average price target of $12.00.
• Despite a 17.3% revenue increase year-over-year, the company reported a negative EPS of ($0.26), missing expectations significantly by ($0.27).

ADTRAN Holdings, Inc. (NASDAQ:ADTN - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $10.44, but opened at $9.40. ADTRAN shares last traded at $9.03, with a volume of 988,798 shares changing hands.

Analysts Set New Price Targets

A number of research analysts have commented on ADTN shares. B. Riley started coverage on ADTRAN in a research note on Thursday. They set a "buy" rating and a $16.00 price objective on the stock. Wolfe Research started coverage on ADTRAN in a research note on Monday, July 7th. They set a "peer perform" rating on the stock. Finally, Wall Street Zen cut ADTRAN from a "buy" rating to a "hold" rating in a research note on Saturday, August 30th. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $12.80.

ADTRAN Stock Performance

The firm has a market capitalization of $759.81 million, a PE ratio of -7.25 and a beta of 1.39. 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 50-day moving average price of $9.29 and a 200-day moving average price of $8.66.

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

Institutional Trading of ADTRAN

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its holdings in ADTRAN by 7.6% in the first quarter. Vanguard Group Inc. now owns 7,093,931 shares of the communications equipment provider's stock valued at $61,859,000 after buying an additional 501,512 shares during the last quarter. Royce & Associates LP boosted its stake in ADTRAN by 188.5% in the first quarter. Royce & Associates LP now owns 1,406,500 shares of the communications equipment provider's stock valued at $12,265,000 after acquiring an additional 919,000 shares during the period. Invesco Ltd. boosted its stake in ADTRAN by 325.4% in the first quarter. Invesco Ltd. now owns 1,183,180 shares of the communications equipment provider's stock valued at $10,317,000 after acquiring an additional 905,056 shares during the period. Westerly Capital Management LLC boosted its stake in ADTRAN by 16.8% in the second quarter. Westerly Capital Management LLC now owns 975,000 shares of the communications equipment provider's stock valued at $8,746,000 after acquiring an additional 140,000 shares during the period. Finally, SG Capital Management LLC acquired a new position in ADTRAN in the second quarter valued at approximately $7,601,000. 80.56% of the stock is 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.