ADTRAN (NASDAQ:ADTN) Reaches New 1-Year Low - Here's Why

Key Points

• ADTRAN shares fell to a new 52-week low of $6.92, well below their 50-day and 200-day moving averages of $8.24 and $12.19, respectively.
• The company’s latest quarterly results missed expectations: earnings were $0.04 per share versus a $0.10 estimate, while revenue reached $281.15 million against expectations of $290.19 million.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $14.67; institutional investors own approximately 80.56% of the stock.

ADTRAN Holdings, Inc. (NASDAQ:ADTN - Get Free Report)'s share price hit a new 52-week low on Thursday . The company traded as low as $6.92 and last traded at $6.9240, with a volume of 267212 shares. The stock had previously closed at $7.11.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on ADTN shares. Evercore set a $11.00 price objective on ADTRAN in a research report on Wednesday, August 5th. Rosenblatt Securities reduced their target price on ADTRAN from $20.00 to $15.00 and set a "buy" rating on the stock in a research report on Wednesday, August 5th. Wall Street Zen cut ADTRAN from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Craig Hallum set a $12.00 price objective on shares of ADTRAN in a research note on Wednesday, August 5th. Finally, Zacks Research downgraded shares of ADTRAN from a "hold" rating to a "strong sell" rating in a research note 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 given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $14.67.

ADTRAN Price Performance

The company has a market capitalization of $565.07 million, a PE ratio of -24.77, a PEG ratio of 4.46 and a beta of 1.47. The company has a current ratio of 1.79, a quick ratio of 1.19 and a debt-to-equity ratio of 1.69. The company's 50 day moving average price is $8.24 and its 200-day moving average price is $12.19.

ADTRAN (NASDAQ:ADTN - Get Free Report) last issued its 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 positive return on equity of 14.24% and a negative net margin of 2.29%.The firm had revenue of $281.15 million during the quarter, compared to analysts' expectations of $290.19 million. The firm's quarterly revenue was up 6.0% on a year-over-year basis. On average, sell-side analysts forecast that ADTRAN Holdings, Inc. will post 0.16 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ADTRAN

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in ADTRAN during the 2nd quarter worth approximately $108,923,000. William Blair Investment Management LLC purchased a new stake in ADTRAN during the second quarter worth approximately $15,276,000. Bank of America Corp DE purchased a new stake in ADTRAN during the second quarter worth approximately $11,751,000. Heartland Advisors Inc. purchased a new stake in ADTRAN during the first quarter worth approximately $9,435,000. Finally, Sei Investments Co. increased its position in shares of ADTRAN by 162.0% in the first quarter. Sei Investments Co. now owns 1,105,110 shares of the communications equipment provider's stock worth $13,902,000 after acquiring an additional 683,262 shares in the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

About ADTRAN

ADTRAN Holdings, Inc NASDAQ: ADTN is a provider of networking and communications equipment, software and services for telecommunications companies, broadband providers, enterprises and government organizations. The company develops solutions that help service providers build and manage high-speed access networks, including fiber, fixed wireless and other broadband technologies.

Its portfolio includes access and aggregation platforms, optical networking systems, routers, switches, Wi-Fi equipment, cloud and network management software, and related professional and support services.

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