Hennessy Advisors Inc. Takes $7.32 Million Position in ADTRAN Holdings, Inc. $ADTN

Key Points

• Hennessy Advisors acquired 526,300 ADTRAN shares worth approximately $7.32 million, representing about 0.65% of the company. Institutional investors and hedge funds collectively own 80.56% of ADTRAN.
• ADTRAN shares opened at $7.72, near their 52-week low of $7.11 and well below the 52-week high of $19.98. The company recently missed earnings and revenue expectations, reporting $0.04 in quarterly EPS versus the $0.10 consensus.
• Analyst sentiment is mixed, with an overall “Hold” rating and a consensus price target of $14.67; four analysts rate the stock a Buy, one a Hold, and two a Sell.

Hennessy Advisors Inc. bought a new stake in ADTRAN Holdings, Inc. (NASDAQ:ADTN - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 526,300 shares of the communications equipment provider's stock, valued at approximately $7,316,000. Hennessy Advisors Inc. owned approximately 0.65% of ADTRAN at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Persistent Asset Partners Ltd acquired a new stake in ADTRAN in the second quarter valued at approximately $28,000. Quarry LP bought a new stake in shares of ADTRAN during the third quarter valued at approximately $36,000. Kestra Advisory Services LLC acquired a new position in shares of ADTRAN during the fourth quarter worth approximately $36,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of ADTRAN during the fourth quarter worth approximately $47,000. Finally, Freestone Grove Partners LP bought a new position in shares of ADTRAN in the 4th quarter worth $87,000. 80.56% of the stock is owned by institutional investors and hedge funds.

ADTRAN Stock Performance

Shares of ADTN stock opened at $7.72 on Friday. The company has a debt-to-equity ratio of 1.69, a quick ratio of 1.19 and a current ratio of 1.79. The firm has a market cap of $629.03 million, a price-to-earnings ratio of -27.57 and a beta of 1.47. ADTRAN Holdings, Inc. has a 52 week low of $7.11 and a 52 week high of $19.98. The firm's 50-day simple moving average is $10.44 and its two-hundred day simple moving average is $12.54.

ADTRAN (NASDAQ:ADTN - Get Free Report) last released its earnings results on Tuesday, August 4th. The communications equipment provider reported $0.04 earnings per share for the quarter, missing analysts' consensus estimates of $0.10 by ($0.06). The company had revenue of $281.15 million for the quarter, compared to the consensus estimate of $290.19 million. ADTRAN had a negative net margin of 2.29% and a positive return on equity of 14.24%. ADTRAN's quarterly revenue was up 6.0% on a year-over-year basis. As a group, equities analysts forecast that ADTRAN Holdings, Inc. will post 0.16 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Craig Hallum set a $12.00 price target on shares of ADTRAN in a research note on Wednesday, August 5th. Rosenblatt Securities dropped their price objective on shares of ADTRAN from $20.00 to $15.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Northland Securities set a $15.00 price objective on shares of ADTRAN in a report on Wednesday, August 5th. Wall Street Zen downgraded shares of ADTRAN from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Evercore set a $11.00 target price on shares of ADTRAN in a report on Wednesday, August 5th. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $14.67.

About ADTRAN

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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