Adeia (NASDAQ:ADEA) Hits New 12-Month High - Still a Buy?

Key Points

• 52-week high: Adeia shares hit a new 52-week high intraday at $30.17 and were last trading around $29.72 on volume of about 1.76 million shares.
• Analyst sentiment: Five analysts rate the stock a Buy and one a Hold, giving a consensus rating of “Moderate Buy” with an average price target of $28.80, though some firms have higher targets (Rosenblatt $40, BWS $30).
• Fundamentals and earnings beat: Adeia topped Q results with $0.86 EPS vs. $0.73 expected and $182.6M revenue vs. $168.5M expected, showing strong profitability (ROE 38%, net margin 25%) and paying a modest $0.20 annualized dividend (0.7% yield).

Adeia Inc. (NASDAQ:ADEA - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $30.17 and last traded at $29.72, with a volume of 1760986 shares changing hands. The stock had previously closed at $29.52.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Maxim Group lifted their target price on Adeia from $17.00 to $20.00 and gave the company a "buy" rating in a research report on Tuesday, December 23rd. Weiss Ratings raised Adeia from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, January 12th. Zacks Research cut Adeia from a "strong-buy" rating to a "hold" rating in a research report on Thursday, February 26th. Rosenblatt Securities reissued a "buy" rating and issued a $40.00 price objective on shares of Adeia in a research report on Thursday, April 2nd. Finally, BWS Financial reissued a "buy" rating and issued a $30.00 price objective on shares of Adeia in a research report on Monday, March 9th. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, Adeia currently has an average rating of "Moderate Buy" and a consensus price target of $28.80.

Adeia Stock Performance

The company has a 50-day simple moving average of $23.14 and a two-hundred day simple moving average of $18.47. The company has a quick ratio of 3.81, a current ratio of 3.81 and a debt-to-equity ratio of 0.83. The firm has a market cap of $3.29 billion, a PE ratio of 30.33 and a beta of 1.30.

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

Adeia Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 30th. Shareholders of record on Monday, March 16th were given a $0.05 dividend. The ex-dividend date of this dividend was Monday, March 16th. This represents a $0.20 annualized dividend and a yield of 0.7%. Adeia's payout ratio is currently 20.41%.

Institutional Trading of Adeia

Several hedge funds have recently made changes to their positions in ADEA. Hantz Financial Services Inc. raised its stake 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 during the period. Quarry LP raised its stake 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 during the period. IFP Advisors Inc bought a new stake in shares of Adeia in the third quarter valued at $28,000. Osaic Holdings Inc. raised its stake 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 during the period. Finally, CWM LLC raised its stake 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 during the period. 97.36% of the stock is currently owned by institutional investors.

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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