ADTRAN (NASDAQ:ADTN) Shares Gap Up - Time to Buy?

Key Points

• ADTRAN shares gapped higher, opening at $7.96 versus the prior close of $7.56 and last trading around $8.16.
• Analyst sentiment remains mixed: the stock carries an average “Hold” rating and a $14.67 average price target, with recent recommendations ranging from “Strong Sell” to “Buy.”
• ADTRAN missed quarterly expectations, reporting $0.04 in EPS versus $0.10 forecast and revenue of $281.15 million versus $290.19 million, although revenue increased 6% year over year; institutional investors own 80.56% of the stock.

ADTRAN Holdings, Inc. (NASDAQ:ADTN - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $7.56, but opened at $7.96. ADTRAN shares last traded at $8.1550, with a volume of 329,804 shares traded.

Wall Street Analyst Weigh In

Several brokerages have issued reports on ADTN. Evercore set a $11.00 target price on ADTRAN in a research note on Wednesday. Zacks Research downgraded ADTRAN from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 4th. Wall Street Zen cut ADTRAN from a "buy" rating to a "hold" rating in a research note on Saturday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of ADTRAN in a report on Tuesday, June 30th. Finally, Needham & Company LLC cut their target price on shares of ADTRAN from $18.00 to $14.00 and set a "buy" rating for the company in a research report on Thursday, July 23rd. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $14.67.

ADTRAN Price Performance

The business's fifty day simple moving average is $12.79 and its 200-day simple moving average is $12.73. The company has a current ratio of 1.79, a quick ratio of 1.19 and a debt-to-equity ratio of 1.69. The firm has a market cap of $653.14 million, a P/E ratio of -28.61 and a beta of 1.47.

ADTRAN (NASDAQ:ADTN - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The communications equipment provider reported $0.04 EPS for the quarter, missing analysts' consensus estimates of $0.10 by ($0.06). The company had revenue of $281.15 million during the quarter, compared to the consensus estimate of $290.19 million. ADTRAN had a positive return on equity of 14.24% and a negative net margin of 2.29%.The firm's quarterly revenue was up 6.0% compared to the same quarter last year. As a group, analysts forecast that ADTRAN Holdings, Inc. will post 0.23 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Persistent Asset Partners Ltd bought a new position in shares of ADTRAN in the second quarter valued at approximately $28,000. Quarry LP purchased a new position in ADTRAN during the third quarter valued at approximately $36,000. Kestra Advisory Services LLC bought a new stake in ADTRAN during the 4th quarter worth approximately $36,000. ST Germain D J Co. Inc. increased its holdings in ADTRAN by 100.0% during the 4th quarter. ST Germain D J Co. Inc. now owns 5,000 shares of the communications equipment provider's stock worth $43,000 after acquiring an additional 2,500 shares during the period. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in ADTRAN in the 4th quarter worth approximately $47,000. Hedge funds and other 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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