Momentum Stock Watch: ADTRAN, Inc. (ADTN)

Company Profile:

ADTRAN, Inc. manufactures and sells networking and communications equipment worldwide. It operates in two divisions, Carrier Networks and Enterprise Networks. The Carrier Networks division provides broadband access products, such as multi-service access node products, fiber to the node products, digital subscriber line access multiplexer products, and distribution point units; optical products.The Enterprise Networks division provides internetworking products, such as Total Access Internet protocol business gateways, optical network terminals, virtual wireless local area networking products, access routers, enterprise session border controllers, managed Ethernet switches, unified communications solutions, carrier Ethernet network terminating equipment, carrier Ethernet routers and gateways, and network management solutions. ADTRAN, Inc. was founded in 1985 and is headquartered in Huntsville, Alabama.

Recent News:

On Aug. 10, 2016, the company announced that it has shipped the 50,000th Total Access 5000 (TA5000), making it the most widely deployed multi-service access node (MSAN) in North America.

Also on Aug. 10, 2016, the company announced its first Subscriber Edge Tunable (SET) optical transceivers, the latest innovation from ADTRAN Labs. ADTRAN’s entry into this new category of tunable optics addresses several key technology and innovation gaps that have hindered market development for multi-wavelength access networks.

For the second quarter 2016, the company reported that sales were $162,701,000 compared to $160,138,000 for the second quarter of 2015. Net income was $10,228,000 compared to $2,544,000 for the second quarter of 2015.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

Technical indicators for ADTN signal the bullish signs, as  there is a bullish cross in MACD and Stochatic oscillator and RSI is in bull territory, which stands at 51.52 with positive bias. We rate ADTRAN, Inc. (ADTN) a STRONG BUY.