ADTRAN (NASDAQ:ADTN) Given "Buy" Rating at B. Riley Financial

Key Points

• B. Riley reaffirmed its Buy rating on ADTRAN but lowered its price target from $21 to $14, implying 182% upside from the share price cited in the report.
• Analyst views are mixed: ADTRAN’s average rating is Hold, with an average price target of $11.21; other firms have also cut targets or issued less favorable ratings.
• ADTRAN beat third-quarter EPS estimates ($0.09 versus $0.03), but revenue missed forecasts at $281.2 million and rose only 0.6% year over year.

ADTRAN (NASDAQ:ADTN - Get Free Report)'s stock had its "buy" rating restated by B. Riley Financial in a research note issued on Wednesday, Benzinga reports. They currently have a $14.00 target price on the communications equipment provider's stock, down from their previous target price of $21.00. B. Riley Financial's price objective points to a potential upside of 182.26% from the company's current price.

A number of other equities research analysts have also recently commented on ADTN. Zacks Research upgraded shares of ADTRAN from a "strong sell" rating to a "hold" rating in a report on Monday, October 5th. Needham & Company LLC decreased their price target on shares of ADTRAN from $14.00 to $9.00 and set a "buy" rating for the company in a research note on Tuesday. Weiss Ratings cut shares of ADTRAN from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, September 16th. Evercore set a $11.00 target price on ADTRAN in a research note on Wednesday, August 5th. Finally, Craig Hallum set a $12.00 target price on ADTRAN in a research 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 given a Sell rating to the company's stock. According to data from MarketBeat.com, ADTRAN presently has an average rating of "Hold" and an average target price of $11.21.

ADTRAN Stock Performance

Shares of ADTN stock opened at $4.96 on Wednesday. The company has a market cap of $404.14 million, a price-to-earnings ratio of -17.91, a price-to-earnings-growth ratio of 3.84 and a beta of 1.53. ADTRAN has a 52 week low of $5.03 and a 52 week high of $19.98. The company has a quick ratio of 1.19, a current ratio of 1.79 and a debt-to-equity ratio of 1.69. The firm has a 50 day moving average of $7.05 and a 200-day moving average of $11.00.

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

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in shares of ADTRAN in the second quarter worth about $108,923,000. Dimensional Fund Advisors LP boosted its position in shares of ADTRAN by 50.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,337,028 shares of the communications equipment provider's stock valued at $16,817,000 after acquiring an additional 448,848 shares during the period. CenterBook Partners LP bought a new position in shares of ADTRAN in the third quarter valued at approximately $8,022,000. Sei Investments Co. grew its stake in ADTRAN by 162.0% during the first quarter. Sei Investments Co. now owns 1,105,110 shares of the communications equipment provider's stock valued at $13,902,000 after acquiring an additional 683,262 shares in the last quarter. Finally, William Blair Investment Management LLC purchased a new position in ADTRAN during the second quarter valued at approximately $15,276,000. 80.56% of the stock is owned by institutional investors.

Trending Headlines about ADTRAN

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: ADTRAN reported third-quarter EPS of $0.09, above the $0.03 analyst consensus. The company also cited growth in hyperscaler-related demand. ADTRAN Q3 results
• Neutral Sentiment: Needham cut its price target from $14 to $9 but kept a Buy rating, signaling continued optimism while lowering expectations. Analyst forecasts
• Negative Sentiment: Third-quarter revenue was $281.2 million, below the roughly $285.7 million consensus, and increased only 0.6% year over year. Fourth-quarter revenue guidance of $272 million–$292 million also fell short of the $292.7 million estimate. Revenue outlook and analyst forecasts
• Negative Sentiment: Rosenblatt downgraded ADTRAN from Buy to Neutral and cut its target from $15 to $6.25, adding to concerns about the outlook despite the EPS beat. Rosenblatt downgrade

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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