ADTRAN (NASDAQ:ADTN) Rating Lowered to “Strong Sell” at Zacks Research

ADTRAN (NASDAQ:ADTN) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other research analysts have also issued research reports about the company. Needham & Company LLC reduced their price objective on ADTRAN from $18.00 to $14.00 and set a “buy” rating for the company in a research report on Thursday, July 23rd. Rosenblatt Securities dropped 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. Northland Securities set a $15.00 price target on shares of ADTRAN in a research report on Wednesday. Wall Street Zen downgraded shares of ADTRAN from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, July 28th. Finally, B. Riley Financial reiterated a “buy” rating and set a $21.00 price objective (down from $23.00) on shares of ADTRAN in a research report on Thursday, July 23rd. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $14.67.

ADTRAN Price Performance

Shares of NASDAQ:ADTN opened at $7.91 on Tuesday. The company has a market cap of $644.27 million, a PE ratio of -28.25 and a beta of 1.47. ADTRAN has a fifty-two week low of $7.11 and a fifty-two week high of $19.98. The firm has a 50-day simple moving average of $13.16 and a 200 day simple moving average of $12.75. The company has a quick ratio of 1.18, a current ratio of 1.79 and a debt-to-equity ratio of 1.69.

ADTRAN (NASDAQ:ADTN) last issued its earnings results on Monday, August 3rd. The communications equipment provider reported $0.04 EPS for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.06). The company had revenue of $281.15 million during the quarter, compared to analyst estimates of $290.19 million. ADTRAN had a negative net margin of 2.29% and a positive return on equity of 14.24%. The business’s quarterly revenue was up 6.0% compared to the same quarter last year. On average, sell-side analysts anticipate that ADTRAN will post 0.23 EPS for the current year.

Institutional Investors Weigh In On ADTRAN

A number of institutional investors have recently added to or reduced their stakes in ADTN. Quarry LP bought a new position in ADTRAN during the 3rd quarter valued at $36,000. Kestra Advisory Services LLC bought a new stake in shares of ADTRAN in the 4th quarter worth $36,000. ST Germain D J Co. Inc. raised its stake in shares of ADTRAN by 100.0% in the 4th quarter. ST Germain D J Co. Inc. now owns 5,000 shares of the communications equipment provider’s stock worth $43,000 after buying an additional 2,500 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in shares of ADTRAN in the fourth quarter valued at $47,000. Finally, Freestone Grove Partners LP acquired a new stake in shares of ADTRAN in the fourth quarter valued at $87,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

More ADTRAN News

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: Rosenblatt Securities maintained a Buy rating, although it reduced its price target from $20 to $15. The new target still implies substantial upside from the current $7.91 level. Benzinga analyst update
• Positive Sentiment: ADTRAN’s fiber broadband business, optical networking sales and expanding AI networking portfolio provide potential long-term growth drivers as demand for broadband and AI infrastructure increases. ADTRAN AI networking analysis
• Neutral Sentiment: Recent coverage noted that ADTRAN’s second-quarter results benefited from healthy revenue growth and optical networking demand, while the earnings call emphasized a mixed outlook with growth opportunities constrained by execution and operating conditions. ADTRAN second-quarter earnings analysis
• Negative Sentiment: Zacks Research downgraded ADTN from Hold to Strong Sell, reinforcing bearish sentiment and likely contributing to continued selling pressure. Zacks rating update
• Negative Sentiment: Zacks analysts said ADTN’s 46.2% three-month decline reflects execution issues affecting margins. They also suggested investors wait for clearer signs of improved execution because the earnings outlook has weakened. ADTRAN execution outlook
• Negative Sentiment: A shareholder law firm is investigating potential securities-law violations, adding a legal overhang and another source of uncertainty for investors. ADTRAN shareholder alert

ADTRAN Company Profile

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.