Wall Street Zen Upgrades ADTRAN (NASDAQ:ADTN) to Buy

ADTRAN (NASDAQ:ADTN) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Saturday.

Several other brokerages have also weighed in on ADTN. Needham & Company LLC restated a “buy” rating and set a $14.00 target price on shares of ADTRAN in a research report on Thursday. Rosenblatt Securities boosted their target price on shares of ADTRAN from $11.00 to $16.00 and gave the company a “buy” rating in a research note on Friday. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $15.33.

ADTRAN Stock Up 2.9%

ADTRAN stock opened at $10.20 on Friday. ADTRAN has a twelve month low of $6.93 and a twelve month high of $11.18. The firm has a market capitalization of $817.22 million, a P/E ratio of -20.00 and a beta of 1.39. The company has a current ratio of 1.96, a quick ratio of 1.23 and a debt-to-equity ratio of 1.54. The stock’s fifty day simple moving average is $9.47 and its 200-day simple moving average is $9.12.

ADTRAN (NASDAQ:ADTN) last posted its earnings results on Wednesday, February 25th. The communications equipment provider reported $0.16 EPS for the quarter, beating the consensus estimate of $0.08 by $0.08. The firm had revenue of $291.56 million for the quarter, compared to analyst estimates of $281.12 million. ADTRAN had a positive return on equity of 4.20% and a negative net margin of 4.15%.The company’s revenue for the quarter was up 20.0% compared to the same quarter last year. As a group, equities analysts expect that ADTRAN will post -0.5 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Cape Investment Advisory Inc. acquired a new stake in shares of ADTRAN during the 2nd quarter worth approximately $27,000. Quarry LP bought a new position in ADTRAN during the 3rd quarter worth $36,000. State of Alaska Department of Revenue acquired a new stake in ADTRAN in the third quarter worth $36,000. Kestra Advisory Services LLC bought a new stake in ADTRAN in the fourth quarter valued at $36,000. Finally, ST Germain D J Co. Inc. lifted its stake in ADTRAN by 100.0% in the fourth quarter. ST Germain D J Co. Inc. now owns 5,000 shares of the communications equipment provider’s stock valued at $43,000 after buying an additional 2,500 shares during the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

ADTRAN News Roundup

Here are the key news stories impacting ADTRAN this week:

• Positive Sentiment: Q4 results beat expectations: ADTN reported $0.16 EPS vs. $0.08 expected and revenue of $291.6M (≈+20% YoY). Gross margins and operating margins improved, signaling improving profitability trends that likely boosted investor confidence. Business Wire: Q4 Results
• Positive Sentiment: Analyst upgrade: Rosenblatt lifted its price target from $11 to $16 and initiated/maintained a “buy” stance, implying roughly ~57% upside from the recent price — a catalyst for bullish flows. Benzinga: Rosenblatt Upgrade
• Neutral Sentiment: Q1 revenue guidance issued: ADTRAN guided Q1 revenue to roughly $275M–$297M (consensus ~ $278M) — broadly in line but with a wide range that leaves room for variability. Investors will watch execution and macro signals. Business Wire: Guidance
• Neutral Sentiment: Earnings presentation and call materials available — useful for parsing product-level demand (cloud, fiber, AI) and management commentary on 2026 priorities. Seeking Alpha: Earnings Presentation
• Neutral Sentiment: Short-interest report in the feed shows a “significant increase” entry but lists zero shares/NaN — the data appears unreliable, so no clear short-selling signal from that report.
• Negative Sentiment: Still unprofitable on a GAAP basis: ADTN posted a negative net margin (~-8.4%) and negative ROE, and carries leverage (debt/equity ~1.54) — these remain risks if revenue growth slows. (Background data referenced in company and market summaries.)
• Negative Sentiment: Zacks notes the beat but highlights macro risks in the guide and frames Q1 sales guidance as a potential headwind if market conditions deteriorate; investors may trim positions on uncertainty. Zacks: Q4 Recap & Risks

About ADTRAN

ADTRAN, Inc is a global provider of networking and communications equipment, specializing in broadband access solutions for service providers, enterprises and government organizations. Founded in 1985 and headquartered in Huntsville, Alabama, the company develops and delivers hardware and software platforms that enable high-speed Internet access over fiber, copper and wireless networks. Its core offerings include fiber access and aggregation equipment, Ethernet switches, customer premises equipment (CPE) and network management systems designed to support both legacy and next-generation broadband deployments.

The company’s product portfolio encompasses a broad range of optical line terminals (OLTs), optical network terminals (ONTs), multiservice access gateways and virtualized access solutions.