ADTRAN (NASDAQ:ADTN) Stock Rating Lowered by Zacks Investment Research

ADTRAN (NASDAQ:ADTN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday, Zacks.com reports. They currently have a $10.00 price objective on the communications equipment provider’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 7.99% from the stock’s current price.

According to Zacks, “ADTRAN continues to optimize its customer, geographic and product diversity momentum as communication service providers scale their network capabilities. It is poised to benefit from growing customer engagements across its portfolio of software-defined access, 10G solutions and G.fast products. A comprehensive portfolio of maintenance, turnkey network implementation, solutions integration and managed services offers compelling revenue-generating opportunities. However, high technological obsolescence of its products increases operating costs with continuous R&D investments, limiting its growth potential. In addition, simmering Sino-U.S. tensions related to trade restrictions imposed on the sale of communication equipment to Chinese firms have dented the industry's credibility, and have led to a loss of business for the company.”

Other analysts have also issued reports about the stock. ValuEngine upgraded shares of ADTRAN from a “sell” rating to a “hold” rating in a research report on Thursday, August 1st. MKM Partners lowered shares of ADTRAN from a “buy” rating to a “neutral” rating and decreased their target price for the company from $17.00 to $11.00 in a research report on Thursday, October 10th. BidaskClub upgraded shares of ADTRAN from a “strong sell” rating to a “sell” rating in a research report on Thursday, September 12th. Finally, Northland Securities reiterated a “hold” rating and set a $10.00 target price on shares of ADTRAN in a research report on Thursday, October 10th. One investment analyst has rated the stock with a sell rating and six have given a hold rating to the company’s stock. ADTRAN presently has a consensus rating of “Hold” and an average price target of $13.00.

NASDAQ ADTN opened at $9.26 on Monday. The firm has a market capitalization of $432.35 million, a price-to-earnings ratio of -19.70, a P/E/G ratio of 10.23 and a beta of 1.24. The company’s fifty day moving average is $10.79 and its two-hundred day moving average is $13.64. ADTRAN has a 52-week low of $8.09 and a 52-week high of $18.40.

ADTRAN (NASDAQ:ADTN) last issued its earnings results on Wednesday, July 17th. The communications equipment provider reported $0.12 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.09. ADTRAN had a net margin of 0.85% and a return on equity of 2.34%. The business had revenue of $156.39 million for the quarter, compared to analyst estimates of $155.95 million. Sell-side analysts forecast that ADTRAN will post 0.18 earnings per share for the current year.

Several hedge funds and other institutional investors have recently made changes to their positions in ADTN. Bank of Montreal Can raised its stake in shares of ADTRAN by 757.0% during the second quarter. Bank of Montreal Can now owns 4,499 shares of the communications equipment provider’s stock worth $69,000 after buying an additional 3,974 shares during the last quarter. Meeder Asset Management Inc. bought a new stake in shares of ADTRAN during the second quarter worth approximately $114,000. Stevens Capital Management LP bought a new stake in shares of ADTRAN during the second quarter worth approximately $155,000. Menta Capital LLC bought a new stake in shares of ADTRAN during the second quarter worth approximately $189,000. Finally, Trexquant Investment LP raised its stake in shares of ADTRAN by 23.9% during the second quarter. Trexquant Investment LP now owns 14,142 shares of the communications equipment provider’s stock worth $216,000 after buying an additional 2,727 shares during the last quarter. 91.19% of the stock is owned by institutional investors.

About ADTRAN

ADTRAN, Inc provides networking and communications equipment worldwide. The company operates through two segments, Network Solutions and Services & Support. It offers access and aggregation solutions, including network management and subscriber services control and orchestration software within a SD-access architecture; SDN-controlled programmable network elements; fiber to the premises and fiber to the node (FTTN) multi-service access nodes (MSAN); fiber aggregation and FTTN MSAN; fiber to the distribution point optical network units; optical line terminals; optical networking edge aggregation; and IP digital subscriber line access multiplexers.

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