ADTRAN (NASDAQ:ADTN) Cut to Hold at Wall Street Zen

Key Points

• ADTRAN has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, reflecting a cautious outlook on the stock's performance.
• The company reported a loss of ($0.26) earnings per share for the last quarter, significantly missing analyst expectations but achieving a year-over-year revenue growth of 17.3%.
• Despite recent downgrades, ADTRAN's average rating remains a "Moderate Buy," with an average price target set at $12.00.

Wall Street Zen downgraded shares of ADTRAN (NASDAQ:ADTN - Free Report) from a buy rating to a hold rating in a report released on Saturday morning.

Several other analysts also recently commented on ADTN. Needham & Company LLC lowered their target price on shares of ADTRAN from $14.00 to $12.00 and set a "buy" rating for the company in a report on Friday, May 9th. Wolfe Research assumed coverage on ADTRAN in a research report on Monday, July 7th. They issued a "peer perform" rating on the stock. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, ADTRAN has a consensus rating of "Moderate Buy" and a consensus target price of $12.00.

ADTRAN Stock Up 4.2%

NASDAQ ADTN traded up $0.39 during trading hours on Friday, hitting $9.67. The company's stock had a trading volume of 1,356,582 shares, compared to its average volume of 705,081. ADTRAN has a 52 week low of $4.93 and a 52 week high of $12.44. The company has a market capitalization of $773.41 million, a PE ratio of -7.38 and a beta of 1.39. The company has a current ratio of 1.96, a quick ratio of 1.19 and a debt-to-equity ratio of 1.12. The company's 50-day simple moving average is $9.17 and its two-hundred day simple moving average is $8.74.

ADTRAN (NASDAQ:ADTN - Get Free Report) last issued its quarterly earnings data on Monday, August 4th. The communications equipment provider reported ($0.26) EPS for the quarter, missing analysts' consensus estimates of $0.01 by ($0.27). ADTRAN had a negative return on equity of 10.09% and a negative net margin of 11.02%.The company had revenue of $265.07 million for the quarter, compared to the consensus estimate of $255.57 million. During the same period in the prior year, the firm posted ($0.24) earnings per share. The business's revenue for the quarter was up 17.3% on a year-over-year basis. Research analysts anticipate that ADTRAN will post -0.5 EPS for the current fiscal year.

Hedge Funds Weigh In On ADTRAN

A number of large investors have recently made changes to their positions in the stock. Cape Investment Advisory Inc. purchased a new position in shares of ADTRAN in the second quarter valued at $27,000. Aquatic Capital Management LLC boosted its stake in ADTRAN by 1,572.5% in the 4th quarter. Aquatic Capital Management LLC now owns 6,690 shares of the communications equipment provider's stock worth $56,000 after purchasing an additional 6,290 shares during the period. FNY Investment Advisers LLC purchased a new position in ADTRAN during the 1st quarter valued at about $65,000. New York State Teachers Retirement System bought a new stake in shares of ADTRAN during the second quarter valued at about $65,000. Finally, Park Avenue Securities LLC bought a new stake in shares of ADTRAN during the second quarter valued at about $91,000. 80.56% of the stock is owned by institutional investors.

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.