Brokerages Adjust Target Price for Analog Devices, Inc. (NASDAQ:ADI)

Analog Devices, Inc. (NASDAQ:ADI) has been evaluated by twenty-two financial analysts, who have collectively given the stock an average rating of "Moderate Buy", as reported by Marketbeat.com. Among these analysts, seven have provided a hold rating while fifteen recommend buying the stock. The consensus 12-month target price set by these brokers is around $249.48.

Several investment firms have recently shared their perspectives on ADI. Needham & Company LLC maintains a "hold" rating for Analog Devices, reiterating this stance in their report on November 27th. Meanwhile, Cantor Fitzgerald has marked the shares with a "neutral" rating and set a price target of $250.00, as noted in a report published on October 8th. Morgan Stanley has revised its price target from $252.00 to $248.00, maintaining an "overweight" rating. In contrast, Piper Sandler has decreased their price target from $235.00 to $220.00 while keeping a "neutral" stance on the stock. Lastly, TD Cowen has reduced their target for Analog Devices from $270.00 to $260.00, continuing to hold a "buy" rating.

Insider Transactions

In insider news, CEO Vincent Roche sold 10,000 shares of Analog Devices on January 2nd at an average price of $215.49, resulting in a transaction amount of $2,154,900. Following this sale, Roche holds 21,983 shares valued at approximately $4,737,116.67, marking a 31.27% decrease in his ownership. The sale details can be found in a filing with the SEC. Additionally, Executive Vice President Gregory M. Bryant sold 20,000 shares on November 1st at an average price of $223.87, totaling $4,477,400. After this sale, Bryant's holdings are valued at about $13,229,149.91, reflecting a 25.29% decrease in his position. Overall, in the past three months, a total of 50,000 shares have been sold by insiders, valued at $11,029,300, while insiders own approximately 0.31% of the company's stock.

Investment Firm Activities

Recently, hedge funds have adjusted their positions in Analog Devices. For instance, Raymond James & Associates increased its stake by 153.6% during the third quarter, now owning 2,348,104 shares valued at $540,463,000 after acquiring an additional 1,422,054 shares. Meanwhile, Franklin Resources Inc. boosted its holdings by 14.9%, owning 9,176,877 shares worth about $2,169,689,000 after gaining 1,189,940 shares. International Assets Investment Management LLC saw a massive increase of 23,792.4% to own 887,603 shares valued at $2,043,000,000. Additionally, Healthcare of Ontario Pension Plan Trust Fund increased its stake by 807.5% to 959,686 shares worth $220,891,000, and Holocene Advisors LP raised its ownership by 336.4%, now possessing 1,068,572 shares valued at $245,953,000. Altogether, institutional investors and hedge funds control 86.81% of Analog Devices’ stock.

Stock Overview

On Wednesday, ADI shares opened at $212.37. The company boasts a market capitalization of $105.40 billion and shows a PE ratio of 64.55 and a price-to-earnings-growth ratio of 2.47. It has seen a 52-week low of $182.57 and a high of $244.14. Its 50-day and 200-day simple moving averages are $216.48 and $222.97, respectively. The firm maintains a quick ratio of 1.35, a current ratio of 1.84, and a debt-to-equity ratio of 0.19, indicating balanced financial health.

Analog Devices reported its latest earnings on November 26th, revealing an earnings per share (EPS) of $1.67, surpassing the forecast of $1.64 by $0.03. Revenue for the quarter was $2.44 billion, exceeding analyst predictions of $2.41 billion. The company posted a net margin of 17.35% and a return on equity of 9.01%. However, revenue saw a decrease of 10.1% from the previous year, with a comparison to $2.01 EPS during the same quarter last year. Analysts predict that Analog Devices will report an EPS of 7.15 for the current year.

Dividend Declaration

Analog Devices also announced a quarterly dividend, which was disbursed on December 20th. Shareholders on record by December 9th received a dividend of $0.92 per share, translating to an annualized dividend of $3.68 and a yield of 1.73%. The ex-dividend date was December 9th, and the current dividend payout ratio stands at 111.85%.

About Analog Devices

Analog Devices, Inc. designs and manufactures integrated circuits (ICs), software, and subsystems, serving various markets including automotive, communications, industrial, and consumer electronics. The company specializes in data converter products, power management solutions, and power ICs essential for energy management applications.

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