ADTRAN Holdings Inc. [NASDAQ: ADTN] stock went on a downward path that fall over -23.83% on Tuesday, amounting to a one-week price decrease of less than -25.79%. The company report on April 10, 2023 that ADTRAN Holdings Announces Preliminary Results for the First Quarter of 2023.
ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (“ADTRAN Holdings” or the “Company”) today announced certain preliminary unaudited financial results for the quarter ended March 31, 2023. All figures in this release are approximate due to the preliminary nature of the announcement. For the first quarter, preliminary revenue is expected to be between $322 million and $326 million as compared to our guidance of $355 million to $375 million. This was primarily due to customer inventory corrections which impacted our Subscriber Solutions product line. In addition, supply constraints prevented us from meeting customer demand across all categories. The resulting preliminary GAAP operating margin is expected to be between -14% and -17%. Preliminary non-GAAP operating margin is expected to be between -1% and -2.5%.
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The Company’s Chief Executive Officer, Tom Stanton, stated, “Growing customer concerns over inventory stocking levels affected our first quarter Subscriber Solutions category. We believe that this over-supply condition in CPE products will continue into the second quarter. Revenue for our Access and Optical Networking products grew sequentially. Supply constraints, however, limited our flexibility to clear past-due backlog across all product categories. We believe that the inventory impact is transitory, and we expect to see some improvement during the second quarter. We plan to adjust expenses in the near term to reflect current conditions, however we do not see any material changes to our near-term opportunities and our long-term growth catalysts as carriers around the world race to upgrade their networks to fiber.”.
Over the last 12 months, ADTN stock dropped by -35.37%. The one-year ADTRAN Holdings Inc. stock forecast points to a potential upside of 55.16. The average equity rating for ADTN stock is currently 2.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $923.22 million, with 77.86 million shares outstanding and 75.94 million shares in the current float. Compared to the average trading volume of 538.58K shares, ADTN stock reached a trading volume of 5742652 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on ADTRAN Holdings Inc. [ADTN]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ADTN shares is $25.67 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ADTN stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Loop Capital have made an estimate for ADTRAN Holdings Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 26, 2022. While these analysts kept the previous recommendation, Needham raised their target price to Buy. The new note on the price target was released on July 14, 2022, representing the official price target for ADTRAN Holdings Inc. stock. Previously, the target price had yet another raise to $25, while Rosenblatt analysts kept a Buy rating on ADTN stock.
The Average True Range (ATR) for ADTRAN Holdings Inc. is set at 0.80, with the Price to Sales ratio for ADTN stock in the period of the last 12 months amounting to 0.90. The Price to Book ratio for the last quarter was 0.90, with the Price to Cash per share for the same quarter was set at 1.36.
ADTN Stock Performance Analysis:
ADTRAN Holdings Inc. [ADTN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -25.79. With this latest performance, ADTN shares dropped by -27.52% in over the last four-week period, additionally sinking by -43.91% over the last 6 months – not to mention a drop of -35.37% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ADTN stock in for the last two-week period is set at 20.82, with the RSI for the last a single of trading hit 15.13, and the three-weeks RSI is set at 25.18 for ADTRAN Holdings Inc. [ADTN]. The present Moving Average for the last 50 days of trading for this stock 16.44, while it was recorded at 14.40 for the last single week of trading, and 19.58 for the last 200 days.
Insight into ADTRAN Holdings Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and ADTRAN Holdings Inc. [ADTN] shares currently have an operating margin of -3.86 and a Gross Margin at +31.91. ADTRAN Holdings Inc.’s Net Margin is presently recorded at -0.20.
Return on Total Capital for ADTN is now -4.36, given the latest momentum, and Return on Invested Capital for the company is -0.30. Return on Equity for this stock declined to -0.30, with Return on Assets sitting at -0.16. When it comes to the capital structure of this company, ADTRAN Holdings Inc. [ADTN] has a Total Debt to Total Equity ratio set at 15.18. Additionally, ADTN Total Debt to Total Capital is recorded at 13.18, with Total Debt to Total Assets ending up at 7.52. Long-Term Debt to Equity for the company is recorded at 2.29, with the Long-Term Debt to Total Capital now at 1.99.
Reflecting on the efficiency of the workforce at the company, ADTRAN Holdings Inc. [ADTN] managed to generate an average of -$616 per employee. Receivables Turnover for the company is 4.25 with a Total Asset Turnover recorded at a value of 0.79.ADTRAN Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.80.
ADTN Stock EPS
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ADTN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for ADTRAN Holdings Inc. go to 2.30%.
ADTRAN Holdings Inc. [ADTN] Insider Position Details
There are presently around $964 million, or 90.50% of ADTN stock, in the hands of institutional investors. The top three institutional holders of ADTN stocks are: BLACKROCK INC. with ownership of 12,444,148, which is approximately 7.54% of the company’s market cap and around 2.10% of the total institutional ownership; VANGUARD GROUP INC, holding 8,099,787 shares of the stock with an approximate value of $122.39 million in ADTN stocks shares; and BANK OF NEW YORK MELLON CORP, currently with $51.57 million in ADTN stock with ownership of nearly 13.556% of the company’s market capitalization.
Positions in ADTRAN Holdings Inc. stocks held by institutional investors increased at the end of Tuesday and at the time of the Tuesday reporting period, where 93 institutional holders increased their position in ADTRAN Holdings Inc. [NASDAQ:ADTN] by around 7,424,255 shares. Additionally, 101 investors decreased positions by around 4,915,734 shares, while 20 investors held positions by with 51,427,380 shares. The mentioned changes placed institutional holdings at 63,767,369 shares, according to the latest SEC report filing. ADTN stock had 23 new institutional investments in for a total of 1,743,474 shares, while 29 institutional investors sold positions of 1,661,423 shares during the same period.