Analog Devices (NASDAQ:ADI) Trading 1% Higher - Is It Time to Buy?

On Friday afternoon, Analog Devices, Inc. (NASDAQ:ADI) saw its stock rise by 1%, reaching as high as $217.11 before trading at $216.64. During the session, 419,067 shares exchanged hands, which was significantly lower than the average trading volume of 3,217,539 shares. The stock had previously closed at $214.55.

Wall Street Analysts Project Future Growth

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Recent comments from various research firms have shed light on ADI's performance. On November 27th, Piper Sandler reduced their price target for Analog Devices from $235.00 to $220.00, maintaining a "neutral" rating. Bank of America also made adjustments, lowering their target from $260.00 to $255.00 while keeping a "buy" rating as of August 22nd. TD Cowen followed suit on November 27th, revising their price target from $270.00 to $260.00 with a "buy" rating. Furthermore, Wells Fargo initiated coverage on Analog Devices with an "equal weight" rating and a price target of $220.00. Lastly, Truist Financial decreased their target from $233.00 to $227.00, placing a "hold" rating. In summary, seven analysts recommend holding the stock while sixteen suggest buying it. The consensus rating, as per MarketBeat.com, stands at "Moderate Buy" with an average price target of $249.33.

Current Stock Movement

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Analog Devices operates with a market capitalization of $107.35 billion, a price-to-earnings (PE) ratio of 65.85, a price-to-earnings growth (PEG) ratio of 2.52, and a beta of 1.05. The company's debt-to-equity ratio is currently at 0.19, while its current and quick ratios are at 1.84 and 1.35, respectively. Additionally, the stock’s fifty-day simple moving average is $223.45, and the 200-day simple moving average is $226.02.

On November 26th, Analog Devices reported its latest earnings results. The semiconductor company posted an earnings per share (EPS) of $1.67, slightly surpassing analyst expectations of $1.64 by $0.03. The revenue for the quarter was $2.44 billion, exceeding the estimated $2.41 billion. Despite this positive performance, the company's revenue was down 10.1% year-over-year, as they reported an EPS of $2.01 during the same quarter the previous year. Currently, analysts predict that Analog Devices, Inc. will report an EPS of 7.15 for the ongoing year.

Dividend Announcement

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The company recently declared a quarterly dividend that will be paid on December 20th. Shareholders on record by December 9th will receive a dividend of $0.92, with the ex-dividend date also set for December 9th. This dividend corresponds to an annualized payout of $3.68 and a yield of 1.70%. It's worth noting that Analog Devices has a payout ratio of 111.85%.

Insider Transactions

In other developments, EVP Gregory M. Bryant sold 30,000 shares on September 25th, at an average price of $224.10, totaling $6,723,000. Following this transaction, he holds 109,093 shares worth approximately $24,447,741. In a separate transaction, CEO Vincent Roche sold 10,000 shares on November 1st for $2,238,700, representing a 31.27% decrease in his holdings. Disclosure for these sales can be found through the Securities & Exchange Commission. In the last 90 days, company insiders sold 100,000 shares valued at over $22.5 million, with company insiders owning only 0.31% of the stock.

Institutional Trading Activity

Recently, significant investors have been actively trading shares of Analog Devices. State Street Corp increased its stake by 0.5% in the third quarter, owning 22,571,586 shares worth $5.2 billion after acquiring an additional 106,664. Geode Capital Management raised its holdings by 1.3%, now owning 10,364,446 shares valued at $2.4 billion. Franklin Resources Inc. expanded their stake by 14.9%, with a total of 9,176,877 shares worth $2.2 billion. Similarly, FMR LLC and Van ECK Associates grew their respective holdings by 9.9% and 17.3%. Collectively, institutional investors own 86.81% of Analog Devices.

About Analog Devices

Analog Devices, Inc. is a prominent company that designs, manufactures, tests, and markets a wide range of integrated circuits (ICs) and software across various regions like the United States, Europe, Japan, and China. Their products include data converters that facilitate the translation of real-world analog signals into digital data and vice versa. They also offer power management products tailored for diverse markets, including automotive, communications, and industrial applications.

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This report utilizes advanced technology and financial data to present accurate information. It has been reviewed by editorial professionals before publication. For inquiries, please contact the relevant email.

Should You Invest $1,000 in Analog Devices Now?

Before investing in Analog Devices, it's advisable to evaluate other available options. Research analysts have identified several investments that may offer better growth potential than Analog Devices. It could be worthwhile to explore these alternatives.

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