ADTRAN Holdings Inc

ADTRAN Holdings, Inc. (NASDAQ: ADTN) is a provider of networking and communications platforms, software, and services focused on the broadband access market. It operates through two segments: Network Solutions segment, which includes hardware and software products, and Services & Support segment, which includes a portfolio of network design and implementation services, support services and cloud-hosted software-as-a-service (SaaS) applications.

Recent Financial and Business Updates:

• ADTRAN Holdings, Inc. has released its financial results for the second quarter of 2023:
• During this period, the company recorded revenue of USD 327.4 million, marking a substantial 90% increase compared to the previous year and a modest 1% increase on a quarter-over-quarter basis.
• In terms of net loss attributable to the Company for the second quarter of 2023, it amounted to USD 33.3 million, reflecting a significant decrease of 1,655% year-over-year and an increase of 3% on a quarter-over-quarter basis. This resulted in a diluted loss per share attributable to the Company for the quarter of USD 0.43, indicating a remarkable decrease of 1,175% year-over-year, while exhibiting a 2% increase quarter-over-quarter.
• Non-GAAP net income attributable to the Company reached USD 0.1 million, registering a substantial decline of 99% year-over-year, and indicating an increase of 102% on a quarter-over-quarter basis. Correspondingly, non-GAAP diluted earnings per share attributable to the Company amounted to USD 0.00, showing a significant decrease of 99% year-over-year, yet displaying a notable increase of 102% quarter-over-quarter.
• Furthermore, ADTRAN Holdings' Board of Directors has declared a cash dividend for the second quarter of 2023. This quarterly cash dividend of USD 0.09 per common share is intended for the Company's stockholders of record as of August 21, 2023. The ex-dividend date has been set for August 20, 2023, while the dividend payment date is scheduled for September 5, 2023.

Technical Observation (on the daily chart)

Currently, the stock has broken an important support of USD 75.00-USD 8.00, from where price has taken support in the past. A further correction from the current level is expected before a move towards upside, with next important support near USD 5.80-USD 6.50. The RSI (14 period) momentum indicator is at an oversold value of 16.81, with expectations of some consolidation or a further short-term correction to the next important support. Moreover, the price is currently positioned below both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term resistances levels.

­­­­­

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 07, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.