Chuck Royce (Trades, Portfolio)’s firm Royce & Associates docked a position in Adtran Inc. (ADTN, Financial) on June 30, GuruFocus Real Time Picks reported.
Royce reduced the position 69.26%, leaving him with 1,672,809 shares remaining. The holding represents 3.14% of the company’s shares outstanding.
Before the sell, Royce’s Adtran position absorbed 0.38% of his portfolio. In total Royce Funds' equity portfolio listed 1,233 positions at the end of the first quarter, at a total value of $26.4 billion.
Year to date Adtran shares have tumbled 26.5% to close at $16.02 on Tuesday. Royce on average paid around $24 per share for his purchases that occurred since the first quarter of 2010. He started the position more than five years ago.
Adtran is a networking and communications company providing equipment for video, voice, data and internet communications. It was the second largest of Royce’s 38 other positions in the Communication Equipment sector. The other largest were Plantronics Inc. (PTN, Financial), Netgear Inc. (NTGR, Financial), Tessco Technologies Inc. (TESS, Financial) and Cisco Systems Inc. (CSCO, Financial).
On April 21, Adtran reported $142.8 million in first-quarter revenue, a decline from $147 million for the same quarter a year previously. Net income was $3.3 million, or 6 cents per diluted share, compared to $9.61 million, or 17 cents per diluted share, a year previously.
Company management attributed lower-than-expected results to currency fluctuations in its European business and its cancelation of a planned program.
Adtran also repurchased 100,000 of its shares during the first quarter at an average price of $21.52 per share and had $4.7 million shares remaining under its current authorization. It paid a dividend of 9 cents.
The company's P/B ratio at 1.58 is near a two-year low. Its P/S ratio at 1.41 is close ot a 10-year low.
Other first quarter guru activity regarding Adtran included a new buy by Paul Tudor Jones (Trades, Portfolio). Jim Simons (Trades, Portfolio) reduced his position, and John Burbank (Trades, Portfolio) sold out.
For more stock trades of gurus in real time, visit GuruFocus’ Real Time Picks, a Premium Feature. Not a Premium Member of GuruFocus? Try it free for 7 days here.
