ADTRAN (NASDAQ:ADTN) Rating Lowered to Neutral at Rosenblatt Securities

ADTRAN (NASDAQ:ADTN) was downgraded by stock analysts at Rosenblatt Securities from a “buy” rating to a “neutral” rating in a research report issued to clients and investors on Tuesday, Briefing.com reports. They presently have a $6.25 price target on the communications equipment provider’s stock. Rosenblatt Securities‘s target price indicates a potential upside of 23.98% from the company’s previous close.

Several other research analysts also recently issued reports on ADTN. Zacks Research raised ADTRAN from a “strong sell” rating to a “hold” rating in a research note on Monday, October 5th. B. Riley Financial reiterated a “buy” rating and set a $21.00 target price (down from $23.00) on shares of ADTRAN in a research report on Thursday, July 23rd. Northland Securities set a $15.00 target price on shares of ADTRAN in a report on Wednesday, August 5th. Weiss Ratings cut shares of ADTRAN from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Wednesday, September 16th. Finally, Craig Hallum set a $12.00 price target on shares of ADTRAN in a research note on Wednesday, August 5th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $12.38.

ADTRAN Price Performance

ADTN stock traded down $1.24 during midday trading on Tuesday, reaching $5.04. 3,358,035 shares of the stock were exchanged, compared to its average volume of 1,975,914. The stock has a market capitalization of $410.75 million, a PE ratio of -18.00, a P/E/G ratio of 4.26 and a beta of 1.48. ADTRAN has a 52 week low of $5.03 and a 52 week high of $19.98. The company has a debt-to-equity ratio of 1.69, a current ratio of 1.79 and a quick ratio of 1.19. The company has a fifty day moving average price of $7.10 and a 200 day moving average price of $11.02.

ADTRAN (NASDAQ:ADTN) last issued its earnings results on Tuesday, November 3rd. The communications equipment provider reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.03 by $0.06. The business had revenue of $281.17 million during the quarter, compared to analysts’ expectations of $285.69 million. ADTRAN had a positive return on equity of 14.24% and a negative net margin of 2.29%. The business’s revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.05 EPS. As a group, analysts expect that ADTRAN will post 0.16 EPS for the current fiscal year.

Institutional Trading of ADTRAN

Large investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in shares of ADTRAN during the 2nd quarter valued at $108,923,000. Dimensional Fund Advisors LP grew its holdings in ADTRAN by 50.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,337,028 shares of the communications equipment provider’s stock worth $16,817,000 after purchasing an additional 448,848 shares during the period. William Blair Investment Management LLC acquired a new stake in ADTRAN in the second quarter worth $15,276,000. Sei Investments Co. increased 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 valued at $13,902,000 after purchasing an additional 683,262 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its stake in ADTRAN by 100.4% in the second quarter. Assenagon Asset Management S.A. now owns 917,754 shares of the communications equipment provider’s stock valued at $12,757,000 after purchasing an additional 459,802 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

Key ADTRAN News

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: ADTRAN reported third-quarter adjusted EPS of $0.09, exceeding the $0.03 analyst consensus and improving from $0.05 in the year-ago quarter. Revenue also edged up 0.6% year over year to $281.2 million. ADTRAN third-quarter financial results
• Positive Sentiment: Non-GAAP operating margin was 5.0%, while non-GAAP gross margin reached 42.1%. The gross-margin result included an approximately 200-basis-point benefit from IEEPA refunds, providing support to profitability in the quarter. ADTRAN reports third-quarter revenue amid supply challenges
• Neutral Sentiment: Management discussed the quarter and business outlook during the earnings call, giving investors additional context on demand, execution and supply conditions. ADTRAN Q3 2026 earnings call transcript
• Negative Sentiment: Revenue of $281.2 million fell short of the $285.7 million consensus estimate. The company also cited supply challenges, which likely raised concerns about near-term execution and growth momentum. ADTRAN Q3 revenue improves
• Negative Sentiment: Despite the adjusted profit, ADTRAN posted a GAAP operating margin of -0.3% and continues to report a negative net margin. Investors may also view the boost from IEEPA refunds as less sustainable than improvement driven by recurring operations. ADTRAN earnings results

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.