ADTRAN (NASDAQ:ADTN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Shares of ADTRAN underperformed the industry it belongs to in 2017 The stock lost 13.4% against the industry's aprreciation of 24.4%. Adding to its woes, the company recently issued a below-par guidance for the final quarter of 2017. High costs are likely to hurt the company's bottom line in the fourth quarter, as was the case in the third quarter of 2017. The negative sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for fourth-quarter earnings has declined 11.7% over the last 90 days. Detailed results should be out later this month. We are, however, impressed by the company's efforts to reward shareholders.”
ADTN has been the subject of several other reports. Northland Securities set a $28.00 target price on shares of ADTRAN and gave the stock a “buy” rating in a report on Wednesday, October 18th. Cowen reaffirmed a “hold” rating and issued a $16.00 target price on shares of ADTRAN in a report on Friday, December 29th. BidaskClub cut shares of ADTRAN from a “hold” rating to a “sell” rating in a report on Tuesday, December 12th. Finally, MKM Partners decreased their target price on shares of ADTRAN from $27.00 to $25.00 and set a “buy” rating for the company in a report on Friday, December 29th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the stock. ADTRAN has a consensus rating of “Hold” and an average target price of $23.79.
ADTRAN (NASDAQ:ADTN) last posted its quarterly earnings data on Tuesday, October 17th. The communications equipment provider reported $0.37 EPS for the quarter, topping the consensus estimate of $0.24 by $0.13. The business had revenue of $185.11 million for the quarter, compared to analyst estimates of $185.43 million. ADTRAN had a net margin of 6.05% and a return on equity of 9.05%. analysts expect that ADTRAN will post 0.88 EPS for the current fiscal year.
In other ADTRAN news, SVP Kevin P. Heering sold 9,809 shares of ADTRAN stock in a transaction dated Monday, October 23rd. The shares were sold at an average price of $21.60, for a total value of $211,874.40. Following the completion of the transaction, the senior vice president now directly owns 10,162 shares of the company’s stock, valued at $219,499.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Raymond R. Schansman sold 48,056 shares of the business’s stock in a transaction that occurred on Friday, October 20th. The shares were sold at an average price of $21.70, for a total transaction of $1,042,815.20. Following the transaction, the senior vice president now directly owns 11,658 shares of the company’s stock, valued at $252,978.60. The disclosure for this sale can be found here. 2.96% of the stock is currently owned by insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in ADTN. Schwab Charles Investment Management Inc. raised its holdings in shares of ADTRAN by 6.6% during the second quarter. Schwab Charles Investment Management Inc. now owns 409,976 shares of the communications equipment provider’s stock valued at $8,467,000 after purchasing an additional 25,208 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in shares of ADTRAN by 1.7% during the second quarter. Bank of New York Mellon Corp now owns 787,094 shares of the communications equipment provider’s stock valued at $16,254,000 after purchasing an additional 13,222 shares during the last quarter. Legal & General Group Plc raised its holdings in shares of ADTRAN by 8.2% during the second quarter. Legal & General Group Plc now owns 90,946 shares of the communications equipment provider’s stock valued at $1,877,000 after purchasing an additional 6,910 shares during the last quarter. BNP Paribas Arbitrage SA raised its holdings in shares of ADTRAN by 57.7% during the second quarter. BNP Paribas Arbitrage SA now owns 20,854 shares of the communications equipment provider’s stock valued at $431,000 after purchasing an additional 7,632 shares during the last quarter. Finally, Marshall Wace North America L.P. purchased a new position in shares of ADTRAN during the second quarter valued at approximately $728,000. 91.37% of the stock is owned by hedge funds and other institutional investors.
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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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