ADTRAN (NASDAQ:ADTN) Shares Down 5.6% - Here's Why

Shares of ADTRAN Holdings, Inc. (NASDAQ:ADTN) experienced a downturn of 5.6% during trading on Thursday, with prices slipping as low as $9.78 before settling at $10.00. The trading session saw a volume of 483,813 shares, marking a significant decrease of 44% compared to the average daily volume of 859,232 shares. The previous closing price stood at $10.59.

Analyst Ratings for ADTRAN

ADTRAN has garnered various opinions from brokerages. Craig Hallum initiated coverage on January 8th, designating a "buy" rating along with a price target of $15.00. Meanwhile, Needham & Company raised their price target from $11.00 to $14.00, reaffirming a "buy" rating for the stock on February 28th. Also on the same day, Rosenblatt Securities maintained a "buy" rating with a price goal of $15.00. Northland Securities updated their price target from $9.00 to $10.00 and assigned an "outperform" rating earlier on December 19th. Collectively, one analyst holds a hold rating, four rate it as a buy, and one gives it a strong buy rating. The average rating from MarketBeat.com reflects a "Buy" status, with a target price of $13.50.

ADTRAN Stock Metrics

ADTRAN exhibits a debt-to-equity ratio of 0.89 along with a current ratio of 2.10 and a quick ratio of 1.17. The stock’s 50-day moving average is noted at $10.26, while the 200-day moving average is $7.96. The company's market capitalization stands at $755.39 million, with a PE ratio of -1.47 and a beta of 1.29.

Institutional Ownership Trends

Recent activity among institutional investors has influenced ADTRAN shares. Aquatic Capital Management LLC significantly increased their stake by 1,572.5% in the fourth quarter, acquiring a total of 6,690 shares valued at $56,000 by purchasing 6,290 additional shares last quarter. Intech Investment Management LLC entered a new position during the third quarter, amounting to $92,000. SIH Partners LLLP also invested in the fourth quarter, contributing $107,000. Harbor Capital Advisors Inc. raised their stake by 94.8% in the third quarter, owning 18,906 shares valued at $112,000 after acquiring 9,202 shares in the last quarter. Point72 Asset Management L.P. made a new investment of $114,000 in the third quarter as well. Currently, institutional investors own 80.56% of ADTRAN shares.

About ADTRAN Holdings, Inc.

ADTRAN Holdings, Inc., through its subsidiaries, provides networking and communications solutions, encompassing software, systems, and services across the United States, Germany, the United Kingdom, and internationally. The company operates through two primary segments: Network Solutions, and Services & Support. Its offerings include residential gateways, ethernet passive optical network ONUs, gigabit passive optical network/XGS-PON ONTs, traditional SSE, routers, switches, edge cloud solutions, carrier ethernet network interface devices, Optical Line Terminals, Packet Aggregation, Copper Access products, and much more, along with training and managed services.

Investment Considerations

Before deciding on ADTRAN as an investment choice, potential investors should explore other options as top-rated analysts have compiled a separate list of five stocks they deem more favorable than ADTRAN.

Regardless of its current ratings, one must conclude whether holding or selling ADTRAN stocks is prudent amid the recent performance decline.

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