ADTRAN (NASDAQ:ADTN) Reaches New 1-Year Low – Here’s What Happened

ADTRAN Holdings, Inc. (NASDAQ:ADTN)’s share price reached a new 52-week low during trading on Monday. The stock traded as low as $6.28 and last traded at $6.28, with a volume of 1,876,575 shares changing hands. The stock had previously closed at $6.53.

Key ADTRAN News

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: Third-quarter adjusted earnings were $0.09 per share, beating the $0.03 consensus estimate. Hyperscaler customer revenue reportedly grew more than 200% year over year, a potential growth driver. Article: Adtran: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Longer-term, replacement of European network equipment represents an estimated $10 billion market opportunity for the company. Article: Adtran: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Third-quarter revenue of $281.2 million fell short of analysts’ $285.7 million estimate and increased only 0.6% year over year. Fourth-quarter revenue guidance of $272 million–$292 million also came in below the $292.7 million consensus, renewing concerns about near-term growth. Article: Analysts Lower Their Forecasts on Adtran Following Q3 Results
• Negative Sentiment: Rosenblatt cut its rating from Buy to Neutral and lowered its target to $6.25 from $15. Needham and B. Riley also reduced their price targets, although both maintained Buy ratings. The forecast revisions may weigh on investor confidence despite the earnings beat. Article: Rosenblatt Downgrades ADTRAN to Neutral

Analysts Set New Price Targets

Several analysts have recently weighed in on the company. Northland Securities set a $15.00 price objective on ADTRAN in a report on Wednesday, August 5th. Needham & Company LLC decreased their price target on shares of ADTRAN from $14.00 to $9.00 and set a “buy” rating on the stock in a research note on Tuesday. Weiss Ratings downgraded shares of ADTRAN from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, September 16th. Zacks Research raised shares of ADTRAN from a “strong sell” rating to a “hold” rating in a report on Monday, October 5th. Finally, Craig Hallum set a $12.00 price objective on shares of ADTRAN in a research note on Wednesday, August 5th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $11.21.

ADTRAN Trading Down 6.5%

The firm has a market cap of $385.40 million, a P/E ratio of -18.19, a price-to-earnings-growth ratio of 3.10 and a beta of 1.53. The company has a current ratio of 1.89, a quick ratio of 1.19 and a debt-to-equity ratio of 2.32. The company’s fifty day moving average price is $6.98 and its two-hundred day moving average price is $10.98.

ADTRAN (NASDAQ:ADTN) last released its quarterly earnings results on Tuesday, November 3rd. The communications equipment provider reported $0.09 EPS for the quarter, beating analysts’ consensus estimates of $0.03 by $0.06. The firm had revenue of $281.17 million for the quarter, compared to analyst estimates of $285.69 million. ADTRAN had a negative net margin of 2.20% and a positive return on equity of 17.76%. The company’s revenue for the quarter was up .6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.05 earnings per share. As a group, sell-side analysts predict that ADTRAN Holdings, Inc. will post 0.16 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. acquired a new stake in ADTRAN during the 2nd quarter valued at $108,923,000. Dimensional Fund Advisors LP raised its position in ADTRAN by 50.5% in the 1st 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 last quarter. CenterBook Partners LP acquired a new position in ADTRAN in the third quarter worth $8,022,000. Sei Investments Co. boosted its stake in 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 purchasing an additional 683,262 shares in the last quarter. Finally, William Blair Investment Management LLC acquired a new position in ADTRAN in the second quarter worth $15,276,000. 80.56% of the stock is owned by institutional investors and hedge funds.

About ADTRAN

ADTRAN Holdings, Inc (NASDAQ: ADTN) is a global telecommunications equipment and networking company that provides communications infrastructure for service providers, enterprises and other organizations. The company develops solutions that help network operators deliver broadband, voice, data and cloud-connected services over fiber, copper, wireless and other access technologies.

Its portfolio includes fiber access systems, passive optical networking equipment, broadband access platforms, Ethernet and data networking products, routers, switches, Wi-Fi solutions, fixed wireless access equipment and software for network management and automation.