Adeia Inc. (NASDAQ:ADEA) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts rate Adeia a "Moderate Buy" (five buys, one hold) with a 12‑month average target of $28.80 and recent price targets ranging up to $40 after several upgrades.
• Adeia beat quarterly expectations, reporting EPS $0.86 vs. $0.73 est. and revenue $182.6M vs. $168.5M, with a 25% net margin and 38% ROE while the stock trades near its 1‑year high (~$29.7) and a $3.29B market cap.
• Institutional ownership is very high (~97.4%), and the company pays a quarterly dividend of $0.05 (about a 0.7% yield and a 20.4% payout ratio).

Shares of Adeia Inc. (NASDAQ:ADEA - Get Free Report) have received an average rating of "Moderate Buy" from the six brokerages that are covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $28.80.

Several research firms have issued reports on ADEA. Zacks Research lowered shares of Adeia from a "strong-buy" rating to a "hold" rating in a report on Thursday, February 26th. Wall Street Zen lowered shares of Adeia from a "strong-buy" rating to a "buy" rating in a report on Saturday, April 11th. Roth Mkm raised their price target on shares of Adeia from $27.00 to $34.00 and gave the stock a "buy" rating in a report on Monday, March 16th. Maxim Group raised their price target on shares of Adeia from $17.00 to $20.00 and gave the stock a "buy" rating in a report on Tuesday, December 23rd. Finally, Rosenblatt Securities restated a "buy" rating and set a $40.00 price target on shares of Adeia in a report on Thursday, April 2nd.

Institutional Trading of Adeia

Large investors have recently modified their holdings of the stock. Hantz Financial Services Inc. grew its position in Adeia by 447.0% in the 4th quarter. Hantz Financial Services Inc. now owns 1,444 shares of the company's stock valued at $25,000 after purchasing an additional 1,180 shares during the period. Quarry LP grew its position in Adeia by 245.5% in the 3rd quarter. Quarry LP now owns 1,586 shares of the company's stock valued at $27,000 after purchasing an additional 1,127 shares during the period. IFP Advisors Inc acquired a new stake in Adeia in the 3rd quarter valued at $28,000. Osaic Holdings Inc. grew its position in Adeia by 714.9% in the 2nd quarter. Osaic Holdings Inc. now owns 2,632 shares of the company's stock valued at $37,000 after purchasing an additional 2,309 shares during the period. Finally, CWM LLC grew its position in Adeia by 436.0% in the 3rd quarter. CWM LLC now owns 2,444 shares of the company's stock valued at $41,000 after purchasing an additional 1,988 shares during the period. Institutional investors and hedge funds own 97.36% of the company's stock.

Adeia Stock Up 0.7%

Shares of NASDAQ ADEA opened at $29.72 on Wednesday. The company has a 50 day simple moving average of $23.14 and a 200 day simple moving average of $18.47. The firm has a market cap of $3.29 billion, a PE ratio of 30.33 and a beta of 1.30. Adeia has a 1 year low of $11.61 and a 1 year high of $30.17. The company has a debt-to-equity ratio of 0.83, a current ratio of 3.81 and a quick ratio of 3.81.

Adeia (NASDAQ:ADEA - Get Free Report) last issued its quarterly earnings data on Monday, February 23rd. The company reported $0.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.73 by $0.13. The business had revenue of $182.64 million during the quarter, compared to analyst estimates of $168.45 million. Adeia had a net margin of 25.05% and a return on equity of 38.01%. On average, research analysts forecast that Adeia will post 1.11 EPS for the current year.

Adeia Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 30th. Shareholders of record on Monday, March 16th were issued a dividend of $0.05 per share. The ex-dividend date was Monday, March 16th. This represents a $0.20 annualized dividend and a yield of 0.7%. Adeia's dividend payout ratio (DPR) is presently 20.41%.

About Adeia

Adeia Inc NASDAQ: ADEA is a technology licensing company that focuses on acquiring, managing and monetizing intellectual property assets in the electronics and communications sectors. The company’s core business involves the strategic purchase of patent portfolios followed by the negotiation of licensing agreements, collaborative partnerships and, where necessary, enforcement actions to generate revenue from those assets. Adeia’s technology coverage spans semiconductor design, data communications, wireless networking, imaging systems and other advanced electronics applications.

By assembling a diversified collection of high-value patent families, Adeia works closely with original equipment manufacturers, semiconductor suppliers and service providers across North America, Europe and Asia.

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