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.”
Other analysts have also issued reports about the stock. MKM Partners cut their target price on shares of ADTRAN from $27.00 to $25.00 and set a “buy” rating for the company in a research note on Friday, December 29th. Northland Securities set a $28.00 target price on shares of ADTRAN and gave the company a “buy” rating in a research note on Wednesday, October 18th. Cowen reissued a “hold” rating and set a $16.00 target price on shares of ADTRAN in a research note on Friday, December 29th. Finally, BidaskClub raised shares of ADTRAN from a “sell” rating to a “hold” rating in a research note on Thursday, December 21st. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the company’s stock. The stock presently 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 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.13. The business had revenue of $185.11 million during the quarter, compared to analysts’ expectations of $185.43 million. ADTRAN had a net margin of 6.05% and a return on equity of 9.05%. analysts anticipate that ADTRAN will post 0.78 EPS for the current fiscal year.
In related news, SVP Raymond R. Schansman sold 48,056 shares of the 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 completion of the sale, the senior vice president now directly owns 11,658 shares of the company’s stock, valued at $252,978.60. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Kevin P. Heering sold 9,809 shares of the stock in a transaction that occurred on Monday, October 23rd. The shares were sold at an average price of $21.60, for a total transaction of $211,874.40. Following the sale, the senior vice president now directly owns 10,162 shares of the company’s stock, valued at $219,499.20. The disclosure for this sale can be found here. 2.96% of the stock is owned by corporate insiders.
Several large investors have recently modified their holdings of ADTN. Public Employees Retirement System of Ohio lifted its position in shares of ADTRAN by 5.8% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 6,804 shares of the communications equipment provider’s stock valued at $141,000 after acquiring an additional 373 shares in the last quarter. Thompson Davis & CO. Inc. purchased a new stake in shares of ADTRAN in the 3rd quarter valued at approximately $157,000. SG Americas Securities LLC purchased a new stake in shares of ADTRAN in the 3rd quarter valued at approximately $190,000. Suntrust Banks Inc. purchased a new stake in shares of ADTRAN in the 2nd quarter valued at approximately $208,000. Finally, Crossmark Global Holdings Inc. purchased a new stake in shares of ADTRAN in the 3rd quarter valued at approximately $211,000. Institutional investors and hedge funds own 91.37% of the company’s stock.
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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