ADTRAN (NASDAQ:ADTN) Cut to "Neutral" at Rosenblatt Securities

Key Points

• Rosenblatt Securities downgraded ADTRAN from “Buy” to “Neutral”, setting a $6.25 price target—about 24% above the stock’s then-current price.
• ADTRAN shares fell 19.7% on Tuesday to $5.04, near their 52-week low of $5.03.
• Quarterly EPS of $0.09 beat the $0.03 consensus, but revenue of $281.2 million missed expectations of $285.7 million; revenue was up 0.6% year over year.

ADTRAN (NASDAQ:ADTN - Get Free Report) was downgraded by investment analysts at Rosenblatt Securities from a "buy" rating to a "neutral" rating in a research report issued on Tuesday, Briefing.com reports. They presently have a $6.25 target price on the communications equipment provider's stock. Rosenblatt Securities's price target would suggest a potential upside of 23.98% from the stock's current price.

ADTN has been the topic of several other reports. Needham & Company LLC dropped their price target on shares of ADTRAN from $14.00 to $9.00 and set a "buy" rating on the stock in a research report on Tuesday. Wall Street Zen lowered shares of ADTRAN from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Zacks Research raised shares of ADTRAN from a "strong sell" rating to a "hold" rating in a report on Monday, October 5th. Northland Securities set a $15.00 target price on shares of ADTRAN in a research note on Wednesday, August 5th. Finally, Evercore set a $11.00 price target on ADTRAN in a report on Wednesday, August 5th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $12.38.

ADTRAN Stock Down 19.7%

Shares of NASDAQ:ADTN traded down $1.24 during trading on Tuesday, hitting $5.04. 3,358,035 shares of the company were exchanged, compared to its average volume of 1,975,914. The stock has a market cap of $410.75 million, a price-to-earnings ratio of -18.00, a P/E/G ratio of 4.26 and a beta of 1.48. ADTRAN has a fifty-two week low of $5.03 and a fifty-two week high of $19.98. The firm has a fifty day moving average price of $7.10 and a two-hundred day moving average price of $11.02. The company has a current ratio of 1.79, a quick ratio of 1.19 and a debt-to-equity ratio of 1.69.

ADTRAN (NASDAQ:ADTN - Get Free Report) last announced its quarterly earnings data on Tuesday, November 3rd. The communications equipment provider reported $0.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.03 by $0.06. The company had revenue of $281.17 million for the quarter, compared to analysts' expectations of $285.69 million. ADTRAN had a positive return on equity of 14.24% and a negative net margin of 2.29%. The business's revenue was up .6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.05 EPS. As a group, research analysts anticipate that ADTRAN will post 0.16 earnings per share for the current fiscal year.

Institutional Trading of ADTRAN

Hedge funds and other institutional investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC acquired a new stake in ADTRAN in the 2nd quarter worth about $27,000. Persistent Asset Partners Ltd acquired a new stake in shares of ADTRAN in the 2nd quarter valued at $28,000. State of Alaska Department of Revenue grew its position in ADTRAN by 44.3% in the third quarter. State of Alaska Department of Revenue now owns 5,589 shares of the communications equipment provider's stock valued at $38,000 after acquiring an additional 1,717 shares during the last quarter. L2 Asset Management LLC bought a new stake in shares of ADTRAN during the 2nd quarter valued at approximately $142,000. Finally, GTS Securities LLC acquired a new position in ADTRAN during the 2nd quarter worth approximately $162,000. Institutional investors own 80.56% of the company's stock.

Key Headlines Impacting ADTRAN

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: ADTRAN reported third-quarter adjusted EPS of $0.09, exceeding the $0.03 analyst consensus and improving from $0.05 in the year-ago quarter. Revenue also edged up 0.6% year over year to $281.2 million. ADTRAN third-quarter financial results
• Positive Sentiment: Non-GAAP operating margin was 5.0%, while non-GAAP gross margin reached 42.1%. The gross-margin result included an approximately 200-basis-point benefit from IEEPA refunds, providing support to profitability in the quarter. ADTRAN reports third-quarter revenue amid supply challenges
• Neutral Sentiment: Management discussed the quarter and business outlook during the earnings call, giving investors additional context on demand, execution and supply conditions. ADTRAN Q3 2026 earnings call transcript
• Negative Sentiment: Revenue of $281.2 million fell short of the $285.7 million consensus estimate. The company also cited supply challenges, which likely raised concerns about near-term execution and growth momentum. ADTRAN Q3 revenue improves
• Negative Sentiment: Despite the adjusted profit, ADTRAN posted a GAAP operating margin of -0.3% and continues to report a negative net margin. Investors may also view the boost from IEEPA refunds as less sustainable than improvement driven by recurring operations. ADTRAN earnings results

About ADTRAN

ADTRAN Holdings, Inc NASDAQ: ADTN is a global telecommunications equipment and networking company that provides communications infrastructure for service providers, enterprises and other organizations. The company develops solutions that help network operators deliver broadband, voice, data and cloud-connected services over fiber, copper, wireless and other access technologies.

Its portfolio includes fiber access systems, passive optical networking equipment, broadband access platforms, Ethernet and data networking products, routers, switches, Wi-Fi solutions, fixed wireless access equipment and software for network management and automation.

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