ADTRAN (NASDAQ:ADTN) Sets New 1-Year Low - What's Next?

Key Points

• ADTRAN shares hit a new 52-week low of $7.00, trading well below their 50-day and 200-day moving averages of $8.92 and $12.31, respectively.
• Analyst sentiment is mixed, with an overall “Hold” rating and a consensus price target of $14.67; recent actions included target cuts and downgrades, including a “Strong Sell” rating from Zacks Research.
• ADTRAN’s latest quarterly results missed expectations, reporting $0.04 in EPS versus $0.10 forecast 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 Wednesday . The stock traded as low as $7.00 and last traded at $7.08, with a volume of 1860571 shares changing hands. The stock had previously closed at $7.04.

Analyst Ratings Changes

ADTN has been the topic of a number of recent research reports. Northland Securities set a $15.00 price target on ADTRAN in a research report on Wednesday, August 5th. Evercore set a $11.00 price objective on 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 note on Saturday, August 8th. Needham & Company LLC decreased their target price on shares of ADTRAN from $18.00 to $14.00 and set a "buy" rating on the stock in a research note on Thursday, July 23rd. Finally, Zacks Research lowered ADTRAN from a "hold" rating to a "strong sell" rating in a research report 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 stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $14.67.

ADTRAN Stock Up 0.6%

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 $8.92 and its two-hundred day moving average price is $12.31. The firm has a market cap of $576.88 million, a PE ratio of -25.28, a PEG ratio of 4.31 and a beta of 1.47.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of ADTRAN during the second quarter valued at $108,923,000. William Blair Investment Management LLC purchased a new position in ADTRAN in the 2nd quarter valued at $15,276,000. Bank of America Corp DE acquired a new position in shares of ADTRAN during the 2nd quarter worth approximately $11,751,000. Heartland Advisors Inc. purchased a new position in ADTRAN during the second quarter worth about $10,425,000. Finally, Sei Investments Co. lifted its stake in shares of ADTRAN by 162.0% in 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 during the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

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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