Heartland Advisors Inc. Makes New Investment in ADTRAN Holdings, Inc. $ADTN

Key Points

• Heartland Advisors initiated a 750,000-share position in ADTRAN Holdings during the second quarter, valued at approximately $10.4 million and representing about 0.92% of the company. Institutional investors collectively own 80.56% of ADTRAN.
• ADTRAN’s latest quarterly results fell short of expectations, with adjusted EPS of $0.04 versus the $0.10 consensus estimate and revenue of $281.15 million versus $290.19 million expected, despite 6% year-over-year revenue growth.
• The stock opened at $7.77, close to its one-year low of $7.11 and well below its 50-day and 200-day moving averages. Analysts’ average rating is Hold, with an average price target of $14.67, although opinions range from Buy to Strong Sell.

Heartland Advisors Inc. bought a new stake in ADTRAN Holdings, Inc. (NASDAQ:ADTN - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 750,000 shares of the communications equipment provider's stock, valued at approximately $10,425,000. Heartland Advisors Inc. owned approximately 0.92% of ADTRAN as of its most recent SEC filing.

Other institutional investors also recently added to or reduced their stakes in the company. Persistent Asset Partners Ltd purchased a new stake in shares of ADTRAN in the 2nd quarter valued at approximately $28,000. Quarry LP purchased a new stake in shares of ADTRAN during the 3rd quarter worth $36,000. Kestra Advisory Services LLC acquired a new position in shares of ADTRAN during the fourth quarter worth $36,000. ST Germain D J Co. Inc. grew its stake in shares of ADTRAN by 100.0% during the fourth quarter. ST Germain D J Co. Inc. now owns 5,000 shares of the communications equipment provider's stock worth $43,000 after purchasing an additional 2,500 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd purchased a new position in ADTRAN in the fourth quarter valued at $47,000. Hedge funds and other institutional investors own 80.56% of the company's stock.

ADTRAN Stock Down 1.1%

Shares of NASDAQ:ADTN opened at $7.77 on Friday. The stock has a market cap of $633.11 million, a P/E ratio of -27.75 and a beta of 1.47. The firm has a fifty day moving average price of $11.16 and a 200 day moving average price of $12.60. The company has a debt-to-equity ratio of 1.69, a current ratio of 1.79 and a quick ratio of 1.19. ADTRAN Holdings, Inc. has a 1-year low of $7.11 and a 1-year high of $19.98.

ADTRAN (NASDAQ:ADTN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The communications equipment provider reported $0.04 EPS for the quarter, missing analysts' consensus estimates of $0.10 by ($0.06). ADTRAN had a negative net margin of 2.29% and a positive return on equity of 14.24%. The business had revenue of $281.15 million during the quarter, compared to analyst estimates of $290.19 million. The business's revenue was up 6.0% compared to the same quarter last year. Sell-side analysts predict that ADTRAN Holdings, Inc. will post 0.16 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on ADTN. Evercore set a $11.00 price target on ADTRAN in a report on Wednesday, August 5th. Needham & Company LLC cut their target price on ADTRAN from $18.00 to $14.00 and set a "buy" rating on the stock in a research report on Thursday, July 23rd. Craig Hallum set a $12.00 price target on ADTRAN in a report on Wednesday, August 5th. B. Riley Financial reiterated a "buy" rating and issued a $21.00 price target (down from $23.00) on shares of ADTRAN in a research note on Thursday, July 23rd. Finally, Zacks Research cut shares of ADTRAN from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 4th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $14.67.

ADTRAN Company Profile

ADTRAN, Inc is a global provider of networking and communications equipment, specializing in broadband access solutions for service providers, enterprises and government organizations. Founded in 1985 and headquartered in Huntsville, Alabama, the company develops and delivers hardware and software platforms that enable high-speed Internet access over fiber, copper and wireless networks. Its core offerings include fiber access and aggregation equipment, Ethernet switches, customer premises equipment (CPE) and network management systems designed to support both legacy and next-generation broadband deployments.

The company's product portfolio encompasses a broad range of optical line terminals (OLTs), optical network terminals (ONTs), multiservice access gateways and virtualized access solutions.

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