Needham & Company LLC Has Lowered Expectations for ADTRAN (NASDAQ:ADTN) Stock Price

ADTRAN (NASDAQ:ADTN) had its price target dropped by research analysts at Needham & Company LLC from $18.00 to $14.00 in a report issued on Thursday, MarketBeat reports. The brokerage currently has a “buy” rating on the communications equipment provider’s stock. Needham & Company LLC’s price target would indicate a potential upside of 42.13% from the company’s previous close.

ADTN has been the topic of a number of other reports. B. Riley Financial reaffirmed a “buy” rating on shares of ADTRAN in a report on Friday, May 1st. Rosenblatt Securities upped their price target on ADTRAN from $16.00 to $20.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Wall Street Zen raised ADTRAN from a “buy” rating to a “strong-buy” rating in a research note on Monday, July 20th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of ADTRAN in a research report on Tuesday, June 30th. Finally, Northland Securities set a $18.00 price objective on ADTRAN in a research note on Wednesday, May 6th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $18.20.

ADTRAN Stock Down 3.0%

Shares of ADTN stock opened at $9.85 on Thursday. The company has a current ratio of 1.77, a quick ratio of 1.18 and a debt-to-equity ratio of 1.59. ADTRAN has a 12 month low of $7.11 and a 12 month high of $19.98. The stock has a market cap of $802.28 million, a P/E ratio of -25.26 and a beta of 1.44. The company has a 50 day simple moving average of $14.30 and a two-hundred day simple moving average of $12.74.

ADTRAN (NASDAQ:ADTN) last issued its quarterly earnings results on Tuesday, May 5th. The communications equipment provider reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.05. ADTRAN had a negative net margin of 3.18% and a positive return on equity of 10.94%. The business had revenue of $286.09 million for the quarter, compared to analysts’ expectations of $285.48 million. During the same quarter last year, the company posted $0.03 EPS. The company’s revenue was up 15.5% compared to the same quarter last year. On average, research analysts expect that ADTRAN will post 0.43 earnings per share for the current year.

Institutional Investors Weigh In On ADTRAN

Institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC raised its holdings in ADTRAN by 253.7% during the first quarter. AQR Capital Management LLC now owns 348,478 shares of the communications equipment provider’s stock valued at $3,039,000 after acquiring an additional 249,954 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of ADTRAN by 4.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 46,767 shares of the communications equipment provider’s stock worth $408,000 after acquiring an additional 1,946 shares during the period. Legal & General Group Plc boosted its stake in shares of ADTRAN by 13.9% in the second quarter. Legal & General Group Plc now owns 113,480 shares of the communications equipment provider’s stock worth $1,018,000 after acquiring an additional 13,821 shares during the period. American Century Companies Inc. grew its position in shares of ADTRAN by 11.2% during the second quarter. American Century Companies Inc. now owns 224,015 shares of the communications equipment provider’s stock worth $2,009,000 after purchasing an additional 22,524 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its position in shares of ADTRAN by 17.6% during the second quarter. Russell Investments Group Ltd. now owns 88,384 shares of the communications equipment provider’s stock worth $793,000 after purchasing an additional 13,222 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Key Stories Impacting ADTRAN

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: ADTRAN announced a new senior secured credit facility led by JPMorgan Chase, which should improve liquidity, lower borrowing costs, and give the company more financial flexibility. ADTRAN Strengthens Capital Structure with New Senior Secured Credit Facility
• Positive Sentiment: B. Riley and Rosenblatt both reiterated buy ratings on ADTRAN, signaling that some analysts still see substantial upside from current levels, even though B. Riley trimmed its price target.
• Neutral Sentiment: Needham lowered its price target on ADTRAN but kept a buy rating, which suggests valuation expectations have become more cautious while the longer-term outlook remains constructive.
• Negative Sentiment: A PR Newswire notice says Levi & Korsinsky is investigating whether ADTRAN adequately disclosed risks tied to customer project timing and the impact on revenue and operating results, adding a legal overhang. ADTRAN Holdings Investigation Notice
• Negative Sentiment: Investor concern may also be amplified by reports that the company’s latest preliminary results missed guidance, reinforcing worries about near-term execution and demand visibility.

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.