Stanton buys 150,000 ADTRAN shares at an average $3.9964 per share
Key Facts
Thomas Stanton, CEO and chairman of ADTRAN Holdings, bought 150,000 shares of the company on the market on November 6, at a volume-weighted average price of $3.9964 per share and a total value of $599,458.475. The company reported the transaction through EQS News, stating that it was executed on November 6, 2026. The purchase followed the company’s third-quarter results, which showed revenue of $281.2 million, up 0.6% year over year. Stanton said revenue came in "slightly below the midpoint of guidance" as the company continued to navigate a challenging supply environment. The disclosure does not specify the rationale for the purchase, nor does it by itself establish an effect on investor confidence or the share price.
An additional Stanton purchase of 40,000 shares was reported on November 9, at a volume-weighted average price of $4.2901 and a total value of $171,605.49. The disclosure identifies Stanton as CEO and chairman and attributes the transaction to him in those capacities. The available disclosures therefore cover two Stanton purchases during the period, on November 6 and 9, with different share counts and average purchase prices. On November 12, the company’s filings page listed a report that CFO Timothy Santo bought 17,820 shares on November 6. These disclosures place the purchases in the broader context of trading by company officers, without revealing their motives or investment implications.
ADTRAN reported on November 2 that revenue for the third quarter ended September 30 was $281.2 million, up 0.6% year over year. GAAP gross margin was about 38.5%, compared with a non-GAAP gross margin of 42.1%. The company said the non-GAAP margin benefited by about 200 basis points from IEEPA-related refunds. It reported a GAAP diluted loss per share of $0.10, while non-GAAP diluted earnings per share were $0.09. These metrics show how the profitability picture varies depending on the accounting measure used, while supply constraints remained a factor Stanton cited in his comments on revenue.
On cash flow, net cash used in operating activities was $24.5 million in the third quarter. The company reported cash, cash equivalents and restricted cash of $71.7 million as of September 30. Discussing business performance, Stanton pointed to continued growth in optical networking and accelerating growth with hyperscale customers. He linked the company’s opportunities to the rapid expansion of AI infrastructure, saying that this expansion "is reshaping network investment priorities." Management set these operating developments against the challenging supply environment it said affected revenue during the quarter.
For the fourth quarter of 2026, ADTRAN expects revenue of $272.0 million to $292.0 million and a non-GAAP operating margin of 1.0% to 5.0%. The company attributed its operating-margin guidance range to seasonality, supply availability and the timing of large-customer projects. The guidance provides a framework for the period following third-quarter results, whose revenue came in slightly below the midpoint of the previous guidance range, according to Stanton. Regarding investor appearances, the company scheduled its participation in the Craig-Hallum Alpha Select Conference in New York on November 17, 2026. It also announced its participation in the 29th annual Needham Growth Conference in New York on January 12, 2027.
In trading sessions following the November 6 purchase, ADTRAN shares, which trade under the ticker ADTN, closed at $4.04 that day, then at $4.29 on November 9 and $4.41 on November 10. The stock finished the November 11 session at $4.69. It had closed at $4.13 on November 5, the day before the transaction. These prices show the sequence of daily closes during the period, without establishing that the officers’ purchases caused the share-price movement. The available evidence also did not include reliable verification of the high and low prices during the November 11 session.