Adeia Inc. (NASDAQ:ADEA) Short Interest Up 15.6% in April

Key Points

• Short interest up 15.6% — short interest rose to 4,854,071 shares as of April 15 (about 4.5% of the stock) and the short-interest ratio is 4.9 days based on average daily volume.
• Strong quarterly results — Adeia beat expectations with EPS of $0.86 (vs. $0.73 est.) and revenue of $182.64M (vs. $168.45M), reporting a 25.05% net margin and 38.01% ROE while shares trade near their 52-week high.
• Analysts mostly bullish — the consensus rating is "Buy" with an average target of $28.80 and several firms recently raising price targets (e.g., Roth MKM to $34, Rosenblatt to $40).

Adeia Inc. (NASDAQ:ADEA - Get Free Report) saw a large increase in short interest during the month of April. As of April 15th, there was short interest totaling 4,854,071 shares, an increase of 15.6% from the March 31st total of 4,199,338 shares. Based on an average daily trading volume, of 995,861 shares, the short-interest ratio is currently 4.9 days. Currently, 4.5% of the company's stock are short sold.

Adeia Trading Up 3.8%

Shares of NASDAQ:ADEA opened at $31.85 on Friday. Adeia has a 52-week low of $11.61 and a 52-week high of $32.00. The company has a market capitalization of $3.53 billion, a P/E ratio of 32.50 and a beta of 1.30. The company has a 50-day simple moving average of $24.80 and a 200 day simple moving average of $19.12. The company has a debt-to-equity ratio of 0.83, a quick ratio of 3.81 and a current ratio of 3.81.

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

Adeia Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 30th. Shareholders of record on Monday, March 16th were given 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 0.6%. Adeia's dividend payout ratio (DPR) is 20.41%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on ADEA shares. Roth Mkm increased their price objective on shares of Adeia from $27.00 to $34.00 and gave the stock a "buy" rating in a research note on Monday, March 16th. Zacks Research upgraded shares of Adeia from a "hold" rating to a "strong-buy" rating in a research note on Monday. Weiss Ratings upgraded shares of Adeia from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, January 12th. Rosenblatt Securities restated a "buy" rating and set a $40.00 price objective on shares of Adeia in a research note on Thursday, April 2nd. Finally, BWS Financial restated a "buy" rating and set a $30.00 price objective on shares of Adeia in a research note on Monday, March 9th. One investment analyst has rated the stock with a Strong Buy rating and five have issued a Buy rating to the stock. According to MarketBeat, the company has a consensus rating of "Buy" and an average target price of $28.80.

Institutional Investors Weigh In On Adeia

Several hedge funds have recently bought and sold shares of ADEA. Hantz Financial Services Inc. raised its position in shares of Adeia by 447.0% in the fourth quarter. Hantz Financial Services Inc. now owns 1,444 shares of the company's stock valued at $25,000 after buying an additional 1,180 shares in the last quarter. Quarry LP raised its position in shares of Adeia by 245.5% in the third quarter. Quarry LP now owns 1,586 shares of the company's stock valued at $27,000 after buying an additional 1,127 shares in the last quarter. IFP Advisors Inc acquired a new stake in shares of Adeia in the third quarter valued at approximately $28,000. Osaic Holdings Inc. raised its position in shares of Adeia by 714.9% in the second quarter. Osaic Holdings Inc. now owns 2,632 shares of the company's stock valued at $37,000 after buying an additional 2,309 shares in the last quarter. Finally, CWM LLC raised its position in shares of Adeia by 436.0% in the third quarter. CWM LLC now owns 2,444 shares of the company's stock valued at $41,000 after buying an additional 1,988 shares in the last quarter. 97.36% of the stock is currently owned by institutional investors and hedge funds.

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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