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

Key Points

• ADTRAN shares gapped down before the market opened from $18.34 to $15.87 and last traded around $15.06, a decline of about 21.7% on heavy volume (~1.36 million shares).
• The company’s latest quarter beat expectations with EPS of $0.14 vs. $0.09 and revenue of $286.09M (up 15.5% YoY), but ADTRAN still shows a negative net margin and a negative P/E, while analysts’ consensus is a Hold with an average target of $17.

ADTRAN Holdings, Inc. (NASDAQ:ADTN - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $18.34, but opened at $15.87. ADTRAN shares last traded at $15.0550, with a volume of 1,357,884 shares.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on ADTN shares. Needham & Company LLC set a $18.00 price objective on ADTRAN and gave the stock a "buy" rating in a research report on Thursday, April 9th. Weiss Ratings reissued a "sell (d-)" rating on shares of ADTRAN in a report on Thursday, April 2nd. Rosenblatt Securities boosted their target price on ADTRAN from $11.00 to $16.00 and gave the stock a "buy" rating in a report on Friday, February 27th. B. Riley Financial reissued a "buy" rating on shares of ADTRAN in a report on Friday. Finally, Argus raised ADTRAN to a "hold" rating in a report on Wednesday, March 4th. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $17.00.

ADTRAN Stock Down 21.7%

The company has a debt-to-equity ratio of 1.50, a quick ratio of 1.16 and a current ratio of 1.76. The company has a market capitalization of $1.16 billion, a price-to-earnings ratio of -28.17 and a beta of 1.45. The stock's fifty day simple moving average is $12.93 and its two-hundred day simple moving average is $10.35.

ADTRAN (NASDAQ:ADTN - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The communications equipment provider reported $0.14 earnings per share for the quarter, beating analysts' consensus estimates of $0.09 by $0.05. ADTRAN had a negative net margin of 4.15% and a positive return on equity of 4.23%. The company had revenue of $286.09 million during the quarter, compared to the consensus estimate of $285.48 million. During the same period in the prior year, the company earned $0.03 EPS. ADTRAN's revenue was up 15.5% on a year-over-year basis. On average, sell-side analysts anticipate that ADTRAN Holdings, Inc. will post 0.32 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ADTN. State of Alaska Department of Revenue bought a new position in shares of ADTRAN in the third quarter valued at $36,000. Quarry LP bought a new position in shares of ADTRAN in the third quarter valued at $36,000. Kestra Advisory Services LLC bought a new position in shares of ADTRAN in the fourth quarter valued at $36,000. ST Germain D J Co. Inc. increased its holdings in shares of ADTRAN by 100.0% in 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 in the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new position in shares of ADTRAN in the fourth quarter valued at $47,000. Institutional investors own 80.56% of the company's stock.

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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