ADTRAN Holdings, Inc. $ADTN Shares Sold by Paradigm Capital Management Inc. NY

Key Points

• Paradigm Capital Management Inc. NY significantly reduced its holdings in ADTRAN Holdings, Inc. by 96.7%, selling over 2.3 million shares and now owning just 80,000 shares.
• Multiple institutional investors, including Vanguard Group and Invesco Ltd., increased their stakes in ADTRAN, showcasing a positive shift in interest for the company despite Paradigm's divestment.
• ADTRAN's financial performance revealed a loss of $0.26 EPS for the recent quarter, missing analysts' expectations, but its quarterly revenue increased by 17.3% year-over-year.

Paradigm Capital Management Inc. NY trimmed its position in ADTRAN Holdings, Inc. (NASDAQ:ADTN - Free Report) by 96.7% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 80,000 shares of the communications equipment provider's stock after selling 2,339,600 shares during the period. Paradigm Capital Management Inc. NY owned approximately 0.10% of ADTRAN worth $698,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. Vanguard Group Inc. grew its position in ADTRAN by 7.6% in the 1st quarter. Vanguard Group Inc. now owns 7,093,931 shares of the communications equipment provider's stock valued at $61,859,000 after buying an additional 501,512 shares during the last quarter. Royce & Associates LP lifted its holdings in ADTRAN by 188.5% in the first quarter. Royce & Associates LP now owns 1,406,500 shares of the communications equipment provider's stock valued at $12,265,000 after acquiring an additional 919,000 shares during the period. Invesco Ltd. lifted its holdings in ADTRAN by 325.4% in the first quarter. Invesco Ltd. now owns 1,183,180 shares of the communications equipment provider's stock valued at $10,317,000 after acquiring an additional 905,056 shares during the period. Northern Trust Corp lifted its holdings in ADTRAN by 5.8% in the fourth quarter. Northern Trust Corp now owns 681,878 shares of the communications equipment provider's stock valued at $5,680,000 after acquiring an additional 37,311 shares during the period. Finally, Bank of America Corp DE lifted its holdings in ADTRAN by 20.2% in the fourth quarter. Bank of America Corp DE now owns 634,013 shares of the communications equipment provider's stock valued at $5,281,000 after acquiring an additional 106,601 shares during the period. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on ADTN. Wolfe Research began coverage on ADTRAN in a research note on Monday, July 7th. They set a "peer perform" rating for the company. Wall Street Zen downgraded ADTRAN from a "buy" rating to a "hold" rating in a research note on Saturday, August 30th. Finally, Needham & Company LLC cut their price target on ADTRAN from $14.00 to $12.00 and set a "buy" rating for the company in a research note on Friday, May 9th. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $12.00.

ADTRAN Stock Up 4.2%

ADTRAN stock traded up $0.39 during midday trading on Thursday, hitting $9.67. 1,356,581 shares of the company were exchanged, compared to its average volume of 1,088,332. The company's fifty day moving average price is $9.15 and its 200-day moving average price is $8.75. The company has a market cap of $773.41 million, a PE ratio of -7.38 and a beta of 1.39. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.96 and a quick ratio of 1.19. ADTRAN Holdings, Inc. has a fifty-two week low of $4.93 and a fifty-two week high of $12.44.

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

ADTRAN Profile

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.