ADTRAN (NASDAQ:ADTN) Hits New 52-Week Low - Time to Sell?

Key Points

• ADTRAN shares hit a new 52-week low of $6.69, trading well below their 50-day and 200-day moving averages.
• Analysts maintain an average “Hold” rating with a consensus price target of $14.67, although ratings range from Buy to Sell.
• The company missed quarterly earnings and revenue expectations, reporting $0.04 in EPS versus $0.10 expected, while institutional investors own approximately 80.56% of the stock.

ADTRAN Holdings, Inc. (NASDAQ:ADTN - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday. The company traded as low as $6.69 and last traded at $6.6840, with a volume of 577,363 shares changing hands. The stock had previously closed at $6.96.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on ADTN shares. Craig Hallum set a $12.00 price target on shares of ADTRAN in a research report on Wednesday, August 5th. Zacks Research upgraded shares of ADTRAN from a "strong sell" rating to a "hold" rating in a research note on Monday, October 5th. Evercore set a $11.00 target price on shares of ADTRAN in a research report on Wednesday, August 5th. Northland Securities set a $15.00 price target on ADTRAN in a report on Wednesday, August 5th. Finally, Weiss Ratings cut ADTRAN from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, September 16th. Four analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $14.67.

ADTRAN Stock Performance

The company has a market capitalization of $537.36 million, a P/E ratio of -23.48, a P/E/G ratio of 4.30 and a beta of 1.48. 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 business's fifty day simple moving average is $7.47 and its 200-day simple moving average is $11.82.

ADTRAN (NASDAQ:ADTN - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The communications equipment provider reported $0.04 earnings per share for the quarter, missing the consensus estimate 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 firm had revenue of $281.15 million for the quarter, compared to analysts' expectations of $290.19 million. The business's revenue was up 6.0% on a year-over-year basis. As a group, equities analysts anticipate that ADTRAN Holdings, Inc. will post 0.16 earnings per share for the current fiscal year.

Institutional Trading of ADTRAN

Large investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in ADTRAN in the 2nd quarter valued at about $108,923,000. Dimensional Fund Advisors LP boosted its holdings in shares of ADTRAN by 50.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,337,028 shares of the communications equipment provider's stock valued at $16,817,000 after purchasing an additional 448,848 shares during the period. SG Americas Securities LLC grew its stake in ADTRAN by 53.6% in the first quarter. SG Americas Securities LLC now owns 1,316,049 shares of the communications equipment provider's stock worth $16,556,000 after purchasing an additional 459,005 shares in the last quarter. William Blair Investment Management LLC purchased a new position in ADTRAN during the 2nd quarter worth $15,276,000. Finally, Sei Investments Co. raised its position in ADTRAN by 162.0% during the 1st quarter. Sei Investments Co. now owns 1,105,110 shares of the communications equipment provider's stock valued at $13,902,000 after purchasing an additional 683,262 shares in the last quarter. 80.56% of the stock is owned by hedge funds and other institutional investors.

About ADTRAN

ADTRAN Holdings, Inc is a communications networking company that develops hardware, software and services for telecommunications providers, enterprises and private networks. Its solutions help customers deploy and manage broadband, fiber, Ethernet, fixed wireless and other access networks.

The company's portfolio includes fiber access platforms, optical networking systems, broadband gateways, routers, switches, Wi-Fi equipment, network management software and cloud-based tools. ADTRAN also provides professional, support and managed services designed to help communications service providers build and operate scalable networks.

Founded in 1985 and headquartered in Huntsville, Alabama, ADTRAN serves customers across North America, Europe and other international markets.

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