Insider Selling: CFO of Analog Devices, Inc. Sells Shares

On March 19th, Richard C. Puccio, Jr., the Chief Financial Officer (CFO) of Analog Devices, Inc. (NASDAQ:ADI), executed the sale of 4,000 shares of the company’s stock. The transaction was conducted at an average price of $209.19 per share, resulting in a total sale value of $836,760.00. Post-sale, the CFO's direct ownership in the company decreased, as he now holds 49,916 shares valued at approximately $10,441,928.04. This sale marked a 7.42% reduction in his stock ownership.

Current Stock Performance

As of Friday, ADI stock opened at $205.90. The company's market capitalization stands at $102.12 billion, with a price-to-earnings (PE) ratio of 65.57. It has a price/earnings to growth (P/E/G) ratio of 2.85 and a beta of 1.07. The firm's quick ratio is reported at 1.43, and the current ratio is 1.93, while its debt-to-equity ratio is 0.19. Over the past twelve months, the stock reached a low of $182.57 and a high of $247.10, with a 50-day moving average of $217.33 and a 200-day moving average of $220.05.

Quarterly Earnings Overview

Analog Devices recently announced its quarterly earnings on February 19th. The semiconductor company reported earnings per share (EPS) of $1.63, surpassing the market consensus estimate of $1.54. The company generated revenues of $2.42 billion during this quarter, exceeding the expected $2.36 billion. Despite a net margin of 16.75% and a return on equity of 8.91%, the total revenue reflected a 3.6% decline compared to the same quarter the previous year, where the EPS was recorded at $1.73. Analysts anticipate that Analog Devices will post an EPS of 7.14 for the current fiscal year.

Dividend Increase and Share Repurchase Announcement

Additionally, the company declared a quarterly dividend recently that was paid on March 17th. Shareholders who were on record as of March 4th received a dividend of $0.99, which is an increase from the prior dividend of $0.92. This dividend translates to an annualized figure of $3.96, providing a yield of 1.92%. The dividend payout ratio for Analog Devices is 126.11%.

On February 18th, the company’s Board of Directors authorized a share repurchase program amounting to $10.00 billion. This program enables Analog Devices to buy back up to 9.2% of its outstanding shares, which often indicates the management's belief that the stock is undervalued.

Analyst Ratings and Insights

Recent analyst reports reflect varied sentiments about Analog Devices. Wells Fargo increased their price target on the stock from $220.00 to $240.00 while assigning it an "equal weight" rating. Conversely, JPMorgan Chase raised their target price from $280.00 to $300.00 and gave an "overweight" rating. Research coverage initiated by Maxim Group labeled the stock as a "buy." Truist Financial adjusted their price objective from $230.00 to $248.00 and set a "hold" rating. Currently, six analysts recommended a hold rating, whereas eighteen endorsed a buy rating. MarketBeat.com data reveals a consensus rating of "Moderate Buy" with a target price averaging $255.41.

Institutional Investments in Analog Devices

Several institutional investors have adjusted their stakes in Analog Devices recently. Norges Bank acquired a new position valued at approximately $1.76 billion during the fourth quarter. Meanwhile, Raymond James Financial Inc. invested $833.39 million in new shares of the company. Proficio Capital Partners LLC expanded its ownership by an astonishing 22,005.0% during the same quarter, bringing their total to over 3 million shares worth around $652.94 million. Franklin Resources Inc. also increased their stake by 14.9%, holding around $2.17 billion worth of shares. Currently, around 86.81% of the stock is owned by institutional investors.

Overview of Analog Devices, Inc.

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits, software, and subsystem products both in the United States and globally, including regions like North and South America, Europe, Japan, China, and other parts of Asia. The company specializes in data conversion, power management products, and power ICs, catering to various markets such as automotive, communications, industrial, and consumer goods.

Insider, Selling, Stock