Deep Dive Into Adtran Stock: Analyst Perspectives (4 Ratings)

4 analysts have shared their evaluations of Adtran ADTN during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $8.25, a high estimate of $9.00, and a low estimate of $7.00. Observing a downward trend, the current average is 17.5% lower than the prior average price target of $10.00.

Investigating Analyst Ratings: An Elaborate Study

The standing of Adtran among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Adtran. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Adtran compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Adtran's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Adtran's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Adtran analyst ratings.

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Discovering Adtran: A Closer Look

Adtran Inc is a provider of networking and communications platforms, software, and services focused on the broadband access market. It operates under two reportable segments: Network Solutions, which includes hardware and software products, and Services & Support, which includes a portfolio of network implementation services, support services, and cloud-hosted SaaS applications that complement the product portfolio and can be utilized to support other platforms as well. These two segments span across their three revenue categories: Access & Aggregation, Subscriber Solutions, and Optical Networking Solutions.

Key Indicators: Adtran's Financial Health

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Adtran's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -20.07%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Adtran's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -26.71%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Adtran's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -9.91%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -4.01%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.34, Adtran adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.