Northland Securities Has Negative View of ADTRAN Q4 Earnings

Key Points

• Northland cut its Q4 2026 EPS forecast from a profit of $0.02 to a loss of $0.03 and estimates FY2027 EPS at $0.24.
• ADTRAN’s latest quarterly EPS of $0.09 beat the $0.04 consensus, but revenue of $281.17 million fell short of the $285.15 million estimate; revenue rose 0.6% year over year.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and an average price target of $11.21, while CFO Timothy Santo and CEO Thomas Stanton both reported share purchases.

ADTRAN Holdings, Inc. (NASDAQ:ADTN - Free Report) - Research analysts at Northland Securities dropped their Q4 2026 earnings per share estimates for shares of ADTRAN in a report issued on Wednesday, November 4th. Northland Securities analyst T. Savageaux now forecasts that the communications equipment provider will earn ($0.03) per share for the quarter, down from their previous estimate of $0.02. The consensus estimate for ADTRAN's current full-year earnings is $0.16 per share. Northland Securities also issued estimates for ADTRAN's FY2027 earnings at $0.24 EPS.

ADTRAN (NASDAQ:ADTN - Get Free Report) last announced its earnings results on Tuesday, November 3rd. The communications equipment provider reported $0.09 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.05. ADTRAN had a positive return on equity of 17.76% and a negative net margin of 2.20%. The firm had revenue of $281.17 million for the quarter, compared to the consensus estimate of $285.15 million. During the same period in the previous year, the business earned $0.05 EPS. The firm's revenue for the quarter was up .6% on a year-over-year basis.

Other equities analysts also recently issued research reports about the stock. B. Riley Financial restated a "buy" rating and set a $14.00 price objective (down from $21.00) on shares of ADTRAN in a report on Wednesday, November 4th. Evercore set a $11.00 target price on shares of ADTRAN in a research note on Wednesday, August 5th. Needham & Company LLC dropped their target price on shares of ADTRAN from $14.00 to $9.00 and set a "buy" rating on the stock in a research report on Tuesday, November 3rd. Zacks Research upgraded shares of ADTRAN from a "strong sell" rating to a "hold" rating in a research note on Monday, October 5th. Finally, Weiss Ratings cut shares of ADTRAN from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, September 16th. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $11.21.

ADTRAN Trading Up 2.8%

ADTRAN stock opened at $4.41 on Wednesday. The company has a debt-to-equity ratio of 2.32, a quick ratio of 1.23 and a current ratio of 1.89. The stock has a market cap of $359.42 million, a PE ratio of -16.96, a price-to-earnings-growth ratio of 2.63 and a beta of 1.53. The stock has a 50-day moving average of $6.70 and a two-hundred day moving average of $10.87. ADTRAN has a one year low of $3.92 and a one year high of $19.98.

Insider Buying and Selling

In other ADTRAN news, CFO Timothy Santo purchased 17,820 shares of the business's stock in a transaction that occurred on Friday, November 6th. The shares were bought at an average price of $4.16 per share, for a total transaction of $74,131.20. Following the acquisition, the chief financial officer owned 77,744 shares in the company, valued at $323,415.04. This represents a 29.74% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Thomas Stanton purchased 150,000 shares of ADTRAN stock in a transaction on Friday, November 6th. The shares were acquired at an average cost of $4.01 per share, with a total value of $601,500.00. Following the completion of the transaction, the chief executive officer directly owned 1,410,890 shares in the company, valued at $5,657,668.90. The trade was a 11.90% increase in their position. The SEC filing for this purchase provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 2.16% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ADTN. Integrated Wealth Concepts LLC purchased a new stake in ADTRAN in the second quarter valued at $27,000. Persistent Asset Partners Ltd purchased a new position in shares of ADTRAN during the 2nd quarter valued at about $28,000. Global Retirement Partners LLC acquired a new position in shares of ADTRAN in the 3rd quarter valued at about $29,000. State of Alaska Department of Revenue lifted its holdings in shares of ADTRAN by 44.3% in the 3rd 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, StoneX Group Inc. acquired a new position in shares of ADTRAN in the 3rd quarter valued at about $135,000. Hedge funds and other institutional investors own 80.56% of the company's stock.

Key ADTRAN News

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: CFO Timothy Santo bought 17,820 shares for about $74,000, increasing his stake by nearly 30%. Insider purchases can signal confidence in the company. Article: ADTRAN CFO stock purchase
• Positive Sentiment: Telia Estonia is trialing ADTRAN’s 50G PON technology for future broadband services. The trial offers product-validation potential, though it is not a reported commercial order. Article: Telia Estonia trials 50G PON
• Negative Sentiment: Northland Securities cut its Q4 2026 EPS estimate to a loss of $0.03 from expected earnings of $0.02, and lowered its FY2027 estimate to $0.24 from $0.39. The lower outlook raises concerns about near-term profitability and the pace of recovery.
• Negative Sentiment: Rosenblatt Securities downgraded ADTRAN from Buy to Neutral and slashed its price target from $15 to $6.25, reflecting a more cautious view of the shares. The latest quarterly results were mixed: EPS beat expectations, but revenue fell short of consensus.

About ADTRAN

ADTRAN Holdings, Inc. is a global provider of networking and communications equipment, software, and services. Its products help communications service providers and businesses build and manage broadband and other communications networks. The company's offerings include fiber-optic access systems, broadband access equipment, optical transport and Ethernet solutions, and cloud-managed Wi-Fi and network-management software. These products support connections between service providers' networks and homes, businesses, and other locations.

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