ADTRAN (NASDAQ:ADTN) Hits New 1-Year Low - Should You Sell?

Key Points

• ADTRAN shares hit a new 52-week low of $7.02, trading well below their 50-day and 200-day moving averages of $9.36 and $12.40, respectively.
• Analyst sentiment is mixed but leans cautious: the stock has an average rating of “Hold” and a consensus price target of $14.67, with recent downgrades and target-price cuts.
• ADTRAN’s latest quarterly results missed expectations, reporting $0.04 in adjusted EPS versus a $0.10 estimate and revenue of $281.15 million versus $290.19 million expected, despite 6% year-over-year revenue growth.

Shares of ADTRAN Holdings, Inc. (NASDAQ:ADTN - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $7.02 and last traded at $7.2040, with a volume of 57470 shares changing hands. The stock had previously closed at $7.20.

Analysts Set New Price Targets

A number of equities analysts have recently commented on ADTN shares. Wall Street Zen downgraded ADTRAN from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Weiss Ratings reiterated a "sell (d-)" rating on shares of ADTRAN in a report on Tuesday, June 30th. Craig Hallum set a $12.00 target price on shares of ADTRAN in a research report on Wednesday, August 5th. B. Riley Financial restated a "buy" rating and issued a $21.00 price target (down from $23.00) on shares of ADTRAN in a report on Thursday, July 23rd. Finally, Evercore set a $11.00 price target on shares of ADTRAN in a research report on Wednesday, August 5th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $14.67.

ADTRAN Trading Up 2.4%

The firm has a market capitalization of $601.00 million, a PE ratio of -26.12, a P/E/G ratio of 4.64 and a beta of 1.47. 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 fifty day moving average of $9.36 and a 200 day moving average of $12.40.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Franklin Resources Inc. increased its stake in ADTRAN by 1.6% during the 4th quarter. Franklin Resources Inc. now owns 79,692 shares of the communications equipment provider's stock worth $693,000 after buying an additional 1,263 shares during the period. Integrated Wealth Concepts LLC purchased a new position in ADTRAN in the 2nd quarter valued at about $27,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of ADTRAN by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 46,767 shares of the communications equipment provider's stock valued at $408,000 after acquiring an additional 1,946 shares in the last quarter. Occudo Quantitative Strategies LP grew its stake in shares of ADTRAN by 3.2% during the third quarter. Occudo Quantitative Strategies LP now owns 65,702 shares of the communications equipment provider's stock valued at $616,000 after acquiring an additional 2,016 shares in the last quarter. Finally, Persistent Asset Partners Ltd purchased a new stake in shares of ADTRAN during the second quarter worth about $28,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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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