ADTRAN (ADTN) Raised to “Strong-Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of ADTRAN (NASDAQ:ADTN) from a hold rating to a strong-buy rating in a research report report published on Wednesday, Zacks.com reports. Zacks Investment Research currently has $19.00 price objective on the communications equipment provider’s stock.

According to Zacks, “ADTRAN is well positioned to optimize its customer base, geographic and product diversity momentum. The company expects to gain from increased customer engagements across a comprehensive portfolio of software-defined access and 10G solutions. ADTRAN’s global leadership in software-defined access is likely to ensure a steady stream of revenues as it helps clients reduce cost and accelerate service delivery and deployment. The company has enabled service providers to leverage the ADTRAN Mosaic Software-Defined Access architecture that combines modern Web-scale technologies with open-source platforms to facilitate rapid innovation in multi-technology, multi-vendor environments. The stock has also outperformed the industry in the past six months on average. However, high technological obsolescence increases its operating costs with continuous investments in R&D efforts, limiting its growth potential to some extent.”

ADTN has been the topic of a number of other reports. BidaskClub raised ADTRAN from a sell rating to a hold rating in a research report on Wednesday, April 24th. Needham & Company LLC downgraded ADTRAN from a buy rating to a hold rating in a research report on Tuesday, January 29th. MKM Partners lifted their target price on ADTRAN to $20.00 and gave the stock a buy rating in a research report on Monday, April 22nd. Cowen reissued a market perform rating and set a $17.00 target price (up from $14.00) on shares of ADTRAN in a research report on Monday, April 22nd. They noted that the move was a valuation call. Finally, ValuEngine downgraded ADTRAN from a buy rating to a hold rating in a research report on Wednesday, March 6th. One analyst has rated the stock with a sell rating, three have given a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. The company has a consensus rating of Buy and a consensus target price of $19.40.

ADTN stock opened at $16.32 on Wednesday. ADTRAN has a twelve month low of $10.21 and a twelve month high of $19.30. The stock has a market cap of $780.24 million, a P/E ratio of -34.72, a PEG ratio of 11.30 and a beta of 1.36.

ADTRAN (NASDAQ:ADTN) last released its earnings results on Wednesday, April 17th. The communications equipment provider reported $0.10 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.19. ADTRAN had a negative return on equity of 0.32% and a negative net margin of 1.40%. The business had revenue of $143.79 million for the quarter, compared to the consensus estimate of $140.55 million. Analysts anticipate that ADTRAN will post 0.28 EPS for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 16th. Shareholders of record on Thursday, May 2nd were issued a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a yield of 2.21%. The ex-dividend date of this dividend was Wednesday, May 1st. ADTRAN’s payout ratio is -76.60%.

In other ADTRAN news, VP Roger D. Shannon sold 5,701 shares of ADTRAN stock in a transaction that occurred on Tuesday, April 23rd. The stock was sold at an average price of $17.65, for a total transaction of $100,622.65. Following the sale, the vice president now directly owns 19,009 shares of the company’s stock, valued at $335,508.85. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.52% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ADTN. Bank of New York Mellon Corp boosted its holdings in ADTRAN by 3.5% during the third quarter. Bank of New York Mellon Corp now owns 747,970 shares of the communications equipment provider’s stock valued at $13,202,000 after purchasing an additional 25,549 shares in the last quarter. Legal & General Group Plc boosted its holdings in ADTRAN by 9.4% during the third quarter. Legal & General Group Plc now owns 111,949 shares of the communications equipment provider’s stock valued at $1,970,000 after purchasing an additional 9,594 shares in the last quarter. Vanguard Group Inc. boosted its holdings in ADTRAN by 1.9% during the third quarter. Vanguard Group Inc. now owns 5,136,378 shares of the communications equipment provider’s stock valued at $90,657,000 after purchasing an additional 93,428 shares in the last quarter. Assenagon Asset Management S.A. acquired a new stake in ADTRAN during the fourth quarter valued at approximately $906,000. Finally, Arizona State Retirement System boosted its holdings in ADTRAN by 6.0% during the fourth quarter. Arizona State Retirement System now owns 73,380 shares of the communications equipment provider’s stock valued at $788,000 after purchasing an additional 4,128 shares in the last quarter. 89.17% of the stock is currently 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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