ADTRAN (NASDAQ:ADTN) Shares Gap Down – What’s Next?

ADTRAN Holdings, Inc. (NASDAQ:ADTN) gapped down prior to trading on Tuesday . The stock had previously closed at $18.34, but opened at $15.87. ADTRAN shares last traded at $15.0550, with a volume of 1,357,884 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. Argus raised ADTRAN to a “hold” rating in a report on Wednesday, March 4th. Needham & Company LLC set a $18.00 price target on ADTRAN and gave the company a “buy” rating in a report on Thursday, April 9th. Rosenblatt Securities boosted their target price on shares of ADTRAN from $11.00 to $16.00 and gave the company a “buy” rating in a research note on Friday, February 27th. B. Riley Financial reissued a “buy” rating on shares of ADTRAN in a research note on Friday. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of ADTRAN in a research note on Thursday, April 2nd. Four analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, ADTRAN has an average rating of “Hold” and a consensus price target of $17.00.

ADTRAN Stock Performance

The firm’s 50 day simple moving average is $12.93 and its 200-day simple moving average is $10.35. The company has a debt-to-equity ratio of 1.50, a quick ratio of 1.16 and a current ratio of 1.76. The company has a market capitalization of $1.16 billion, a price-to-earnings ratio of -28.17 and a beta of 1.45.

ADTRAN (NASDAQ:ADTN) last announced its earnings results on Tuesday, May 5th. The communications equipment provider reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.05. ADTRAN had a negative net margin of 4.15% and a positive return on equity of 4.23%. The company had revenue of $286.09 million for the quarter, compared to the consensus estimate of $285.48 million. During the same period in the previous year, the business earned $0.03 EPS. The company’s revenue was up 15.5% on a year-over-year basis. Analysts expect that ADTRAN Holdings, Inc. will post 0.32 EPS for the current year.

Hedge Funds Weigh In On ADTRAN

Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. grew its holdings in shares of ADTRAN by 2.7% during the 3rd quarter. Vanguard Group Inc. now owns 8,383,305 shares of the communications equipment provider’s stock valued at $78,635,000 after acquiring an additional 217,148 shares in the last quarter. DNB Asset Management AS grew its holdings in shares of ADTRAN by 7.6% during the 4th quarter. DNB Asset Management AS now owns 3,123,679 shares of the communications equipment provider’s stock valued at $27,145,000 after acquiring an additional 219,810 shares in the last quarter. Millennium Management LLC grew its holdings in shares of ADTRAN by 371.2% during the 4th quarter. Millennium Management LLC now owns 2,694,800 shares of the communications equipment provider’s stock valued at $23,418,000 after acquiring an additional 2,122,844 shares in the last quarter. Royce & Associates LP grew its holdings in shares of ADTRAN by 7.7% during the 4th quarter. Royce & Associates LP now owns 2,597,013 shares of the communications equipment provider’s stock valued at $22,568,000 after acquiring an additional 186,238 shares in the last quarter. Finally, State Street Corp grew its holdings in shares of ADTRAN by 4.5% during the 4th quarter. State Street Corp now owns 1,985,890 shares of the communications equipment provider’s stock valued at $17,257,000 after acquiring an additional 86,382 shares in the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

About ADTRAN

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.