Why Anadigics (ANAD) Is Up Today

Update (4:43 p.m. EST): Updated with closing price, day high and low prices, price change and volume information.

NEW YORK (TheStreet) -- Anadigics  (ANAD) rose 16.11% to $2.09, up 29 cents from its previous close of $1.80, at the close of the trading day on Tuesday after Samsung selected the company to provide amplifiers for its new Galaxy Trend 3.

The stock had a volume of 3,266,296, well above its average of 436,860. it hit a high of $2.15 and a low of $1.83 for the day.

The Warren, N.J.-based radio frequency solutions company announced that it is sending production volumes of its AWT5001 and AWT5008 ProVantage power amplifiers to Samsung for use on the Galaxy Trend 3. The ProVantage solutions use Anadigics' InGaP-Plus technology to optimize performance, offer space-saving integration and decrease overall system cost.

"We are very pleased to be powering the new Galaxy Trend 3 by Samsung Electronics," said Jerry Miller, senior vice president of cellular products at Anadigics, in a statement. "Our ProVantage solutions deliver outstanding value by providing a best-in-class combination of high power mode efficiency, linearity, and reduced system costs. With a complete portfolio of industry-leading solutions we continue to help Samsung bring to market a diverse set of mobile devices that target a wide range of segments."

TheStreet Ratings team rates ANADIGICS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about its recommendation:

"We rate ANADIGICS INC (ANAD) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ANADIGICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ANADIGICS INC is rather low; currently it is at 20.71%. Regardless of ANAD's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ANAD's net profit margin of -30.27% significantly underperformed when compared to the industry average.
  • ANAD has underperformed the S&P 500 Index, declining 24.59% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • ANADIGICS INC has improved earnings per share by 45.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ANADIGICS INC reported poor results of -$1.00 versus -$0.73 in the prior year. This year, the market expects an improvement in earnings (-$0.56 versus -$1.00).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Semiconductors & Semiconductor Equipment industry average. The net income increased by 34.2% when compared to the same quarter one year prior, rising from -$17.04 million to -$11.20 million.
  • You can view the full analysis from the report here: ANAD Ratings Report

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