ADTRAN, Inc. (ADTN) Downgraded to Hold at Zacks Investment Research
Zacks Investment Research cut shares of ADTRAN, Inc. (NASDAQ:ADTN) from a buy rating to a hold rating in a report released on Tuesday.
According to Zacks, “Shares of ADTRAN have outperformed the industry to which it belongs over the last three months. The company has an impressive earnings history having surpassed estimates in each of the last four quarters. ADTRAN’s efforts to reward shareholders also raise optimism. The company continues to impress with its lucrative product offering and solutions which are some of the best in the industry. The company's efforts to expand internationally are also encouraging. However, the company is currently facing considerable volatility in its business owing to irregular capital spending by telecom carriers. Moreover, the company remains exposed to foreign currency related headwinds. Continuous increase in costs is concerning and have the potential to hurt results going forward.”
A number of other equities analysts have also commented on ADTN. Northland Securities reiterated a buy rating and issued a $24.00 price objective on shares of ADTRAN in a research note on Tuesday, July 4th. Needham & Company LLC lifted their price objective on ADTRAN from $24.00 to $25.00 and gave the stock a buy rating in a research note on Thursday, July 20th. Cowen and Company reiterated a market perform rating and issued a $18.00 price objective (up from $16.00) on shares of ADTRAN in a research note on Saturday, July 22nd. Finally, BidaskClub lowered ADTRAN from a sell rating to a strong sell rating in a research note on Wednesday, August 16th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the company. ADTRAN has an average rating of Hold and a consensus target price of $24.14.
Shares of ADTRAN (NASDAQ:ADTN) opened at 22.40 on Tuesday. ADTRAN has a 52 week low of $17.55 and a 52 week high of $24.05. The firm’s 50-day moving average price is $22.11 and its 200-day moving average price is $20.97. The firm has a market cap of $1.07 billion, a price-to-earnings ratio of 27.97 and a beta of 0.68.
ADTRAN (NASDAQ:ADTN) last posted its quarterly earnings data on Tuesday, July 18th. The communications equipment provider reported $0.30 EPS for the quarter, topping analysts’ consensus estimates of $0.19 by $0.11. The business had revenue of $184.67 million for the quarter, compared to analyst estimates of $183.05 million. ADTRAN had a return on equity of 8.39% and a net margin of 5.68%. During the same period in the previous year, the company posted $0.21 earnings per share. Equities research analysts expect that ADTRAN will post $0.85 EPS for the current fiscal year.
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In related news, SVP Michael Foliano sold 24,000 shares of the business’s stock in a transaction dated Tuesday, July 25th. The stock was sold at an average price of $23.77, for a total transaction of $570,480.00. Following the transaction, the senior vice president now directly owns 5,417 shares in the company, valued at $128,762.09. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 2.96% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. increased its stake in ADTRAN by 75,959.4% during the first quarter. BlackRock Inc. now owns 5,930,353 shares of the communications equipment provider’s stock valued at $123,054,000 after acquiring an additional 5,922,556 shares during the period. Vanguard Group Inc. increased its stake in ADTRAN by 6.0% during the first quarter. Vanguard Group Inc. now owns 4,434,998 shares of the communications equipment provider’s stock valued at $92,026,000 after acquiring an additional 252,733 shares during the period. Victory Capital Management Inc. increased its stake in ADTRAN by 10.2% during the first quarter. Victory Capital Management Inc. now owns 3,835,026 shares of the communications equipment provider’s stock valued at $79,577,000 after acquiring an additional 356,159 shares during the period. Dimensional Fund Advisors LP increased its stake in ADTRAN by 4.6% during the second quarter. Dimensional Fund Advisors LP now owns 3,001,065 shares of the communications equipment provider’s stock valued at $61,972,000 after acquiring an additional 130,835 shares during the period. Finally, Van Berkom & Associates Inc. increased its stake in ADTRAN by 0.4% during the second quarter. Van Berkom & Associates Inc. now owns 2,018,137 shares of the communications equipment provider’s stock valued at $41,675,000 after acquiring an additional 7,790 shares during the period. Hedge funds and other institutional investors own 89.46% of the company’s stock.
ADTRAN Company Profile
ADTRAN, Inc (ADTRAN) is a provider of networking and communications equipment. The Company’s solutions enable voice, data, video and Internet communications across a range of network infrastructures. It operates through two segments: Network Solutions and Services & Support. Network Solutions includes software and hardware products that enable CSPs and enterprise customers to realize a fully connected world.
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