ADTRAN (NASDAQ:ADTN) Stock Gets Price Target Trim from Needham & Company LLC

Key Points

• Needham cut its ADTRAN price target to $9 from $14 but kept a Buy rating, implying 70.68% upside from the previous close. Analysts’ consensus rating was Hold, with an average target of $13.83.
• ADTRAN shares fell 16% on Tuesday to $5.27, near their 52-week low of $5.03.
• Quarterly EPS of $0.09 beat the $0.03 consensus, while revenue of $281.2 million missed estimates of $285.7 million despite rising 0.6% year over year.

ADTRAN (NASDAQ:ADTN - Get Free Report) had its target price dropped by research analysts at Needham & Company LLC from $14.00 to $9.00 in a research note issued on Tuesday, Benzinga reports. The firm presently has a "buy" rating on the communications equipment provider's stock. Needham & Company LLC's price target would suggest a potential upside of 70.68% from the company's previous close.

A number of other equities analysts also recently weighed in on the company. Craig Hallum set a $12.00 target price on ADTRAN in a report on Wednesday, August 5th. Rosenblatt Securities lowered their price objective on shares of ADTRAN from $20.00 to $15.00 and set a "buy" rating on the stock in a research report on Wednesday, August 5th. Zacks Research raised shares of ADTRAN from a "strong sell" rating to a "hold" rating in a research report on Monday, October 5th. Northland Securities set a $15.00 price objective on shares of ADTRAN in a research note on Wednesday, August 5th. Finally, Evercore set a $11.00 target price on shares of ADTRAN in a research report on Wednesday, August 5th. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $13.83.

ADTRAN Stock Down 16.0%

Shares of ADTRAN stock traded down $1.01 during midday trading on Tuesday, hitting $5.27. The company's stock had a trading volume of 2,675,092 shares, compared to its average volume of 1,973,609. The firm has a market capitalization of $429.65 million, a P/E ratio of -19.23, a PEG ratio of 4.26 and a beta of 1.48. The stock has a 50-day simple moving average of $7.10 and a 200-day simple moving average of $11.02. The company has a quick ratio of 1.19, a current ratio of 1.79 and a debt-to-equity ratio of 1.69. ADTRAN has a 1-year low of $5.03 and a 1-year high of $19.98.

ADTRAN (NASDAQ:ADTN - Get Free Report) last posted its quarterly earnings results 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. The firm had revenue of $281.17 million for the quarter, compared to analyst estimates of $285.69 million. ADTRAN had a positive return on equity of 14.24% and a negative net margin of 2.29%. ADTRAN's quarterly revenue was up .6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.05 earnings per share. As a group, sell-side analysts expect that ADTRAN will post 0.16 earnings per share for the current year.

Hedge Funds Weigh In On ADTRAN

A number of hedge funds have recently added to or reduced their stakes in ADTN. CenterBook Partners LP bought a new position in shares of ADTRAN in the third quarter valued at approximately $8,022,000. VIRGINIA RETIREMENT SYSTEMS ET Al grew its holdings in ADTRAN by 42.3% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 40,000 shares of the communications equipment provider's stock valued at $273,000 after buying an additional 11,900 shares during the last quarter. Maxi Investments CY Ltd bought a new position in ADTRAN during the third quarter worth $191,000. State of Alaska Department of Revenue lifted its stake in shares of 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 buying an additional 1,717 shares during the period. Finally, Gratia Capital LLC acquired a new position in shares of ADTRAN in the second quarter valued at $3,482,000. Institutional investors and hedge funds own 80.56% of the company's stock.

Trending Headlines about 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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