Needham & Company LLC Lowers ADTRAN (NASDAQ:ADTN) Price Target to $14.00

Key Points

• Needham & Company cut its price target on ADTRAN from $18 to $14, while keeping a buy rating. The new target still implies about 34% upside from the current share price.
• ADTRAN’s latest earnings beat expectations, with Q1 EPS of $0.14 versus the $0.09 consensus and revenue of $286.1 million, up 15.5% year over year. However, the company still posted a negative net margin and a negative trailing valuation.
• Recent headlines highlight growing caution around the stock, including a weaker revenue/EPS outlook for upcoming quarters and an investigation into possible securities law violations. Analyst sentiment remains mixed, with an average rating of Moderate Buy and a consensus target of $17.20.

ADTRAN (NASDAQ:ADTN - Get Free Report) had its price target dropped by equities researchers at Needham & Company LLC from $18.00 to $14.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has a "buy" rating on the communications equipment provider's stock. Needham & Company LLC's price objective points to a potential upside of 33.97% from the company's current price.

A number of other equities research analysts have also recently issued reports on the company. Wall Street Zen upgraded ADTRAN from a "buy" rating to a "strong-buy" rating in a research note on Monday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of ADTRAN in a report on Tuesday, June 30th. B. Riley Financial reiterated a "buy" rating on shares of ADTRAN in a research report on Friday, May 1st. Northland Securities set a $18.00 price objective on ADTRAN in a research note on Wednesday, May 6th. Finally, Evercore started coverage on ADTRAN in a research report on Tuesday, April 14th. They set an "outperform" rating and a $18.00 target price for the company. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $17.20.

ADTRAN Stock Performance

Shares of ADTN opened at $10.45 on Thursday. ADTRAN has a 12 month low of $7.11 and a 12 month high of $19.98. The company has a market capitalization of $851.15 million, a price-to-earnings ratio of -26.79 and a beta of 1.44. The stock has a 50 day moving average of $14.50 and a 200 day moving average of $12.75. The company has a current ratio of 1.77, a quick ratio of 1.18 and a debt-to-equity ratio of 1.59.

ADTRAN (NASDAQ:ADTN - Get Free Report) last released its earnings results on Tuesday, May 5th. The communications equipment provider reported $0.14 EPS for the quarter, topping analysts' consensus estimates of $0.09 by $0.05. The company had revenue of $286.09 million for the quarter, compared to analysts' expectations of $285.48 million. ADTRAN had a positive return on equity of 10.94% and a negative net margin of 3.18%.The business's revenue for the quarter was up 15.5% compared to the same quarter last year. During the same period in the previous year, the business posted $0.03 EPS. As a group, sell-side analysts forecast that ADTRAN will post 0.43 earnings per share for the current year.

Institutional Investors Weigh In On ADTRAN

Hedge funds have recently made changes to their positions in the business. DNB Asset Management AS grew its holdings in shares of ADTRAN by 7.6% during the 4th quarter. DNB Asset Management AS now owns 3,123,679 shares of the communications equipment provider's stock valued at $27,145,000 after purchasing an additional 219,810 shares during the last quarter. Millennium Management LLC lifted its stake in ADTRAN by 371.2% in the fourth quarter. Millennium Management LLC now owns 2,694,800 shares of the communications equipment provider's stock worth $23,418,000 after purchasing an additional 2,122,844 shares during the last quarter. Royce & Associates LP boosted its position in ADTRAN by 7.7% during the fourth quarter. Royce & Associates LP now owns 2,597,013 shares of the communications equipment provider's stock valued at $22,568,000 after buying an additional 186,238 shares during the period. State Street Corp boosted its position in ADTRAN by 4.5% during the fourth quarter. State Street Corp now owns 1,985,890 shares of the communications equipment provider's stock valued at $17,257,000 after buying an additional 86,382 shares during the period. Finally, Needham Investment Management LLC grew its stake in shares of ADTRAN by 23.2% during the fourth quarter. Needham Investment Management LLC now owns 1,447,500 shares of the communications equipment provider's stock valued at $12,579,000 after buying an additional 272,500 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors.

Key Headlines Impacting ADTRAN

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: Despite the selloff, one article noted that analysts still have a consensus target price of $18.00 for ADTRAN, which suggests some longer-term upside if execution improves. ADTRAN Holdings, Inc. NASDAQ: ADTN Receives $18.00 Consensus Target Price from Analysts
• Neutral Sentiment: ADTRAN announced preliminary second-quarter 2026 results, including unaudited revenue and earnings figures, which are the basis for the market’s reaction. ADTRAN Holdings, Inc. announces certain preliminary second quarter 2026 results
• Neutral Sentiment: The company also updated its second- and third-quarter guidance, signaling a weaker revenue and EPS outlook than Wall Street expected. Why Adtran Stock Withered on Wednesday
• Negative Sentiment: ADTRAN cut its second-quarter revenue outlook to about $280 million-$282 million and guided EPS to $0.03-$0.05, both well below analyst expectations, raising concerns about demand and profitability. ADTRAN falls in premarket on Q2 preliminary revenue miss, soft Q3 outlook
• Negative Sentiment: Johnson Fistel launched an investigation into possible securities law violations at ADTRAN, adding legal overhang and investor uncertainty. Johnson Fistel Investigates ADTRAN Holdings, Inc. (ADTN) for Potential Securities Law Violations

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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