Adeia (NASDAQ:ADEA) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Adeia beat earnings expectations: The company reported quarterly EPS of $0.34, exceeding the $0.31 analyst consensus by $0.03. Revenue was $96.12 million, slightly below estimates of $96.79 million.
• Shares rose during Monday trading to $27.79, giving Adeia a market capitalization of approximately $3.07 billion. The stock remains below its 12-month high of $34.34.
• Analyst sentiment remains moderately bullish: Five analysts rate Adeia a Buy and one rates it a Sell, producing an average “Moderate Buy” rating and a consensus price target of $33.60.

Adeia (NASDAQ:ADEA - Get Free Report) issued its quarterly earnings data on Monday. The company reported $0.34 earnings per share for the quarter, topping analysts' consensus estimates of $0.31 by $0.03, FiscalAI reports. The firm had revenue of $96.12 million during the quarter, compared to analysts' expectations of $96.79 million. Adeia had a return on equity of 39.49% and a net margin of 26.50%.

Adeia Stock Performance

Shares of ADEA stock traded up $1.14 during trading hours on Monday, hitting $27.79. The company's stock had a trading volume of 1,945,503 shares, compared to its average volume of 1,511,160. The stock has a market cap of $3.07 billion, a PE ratio of 25.73 and a beta of 1.36. Adeia has a 12-month low of $11.61 and a 12-month high of $34.34. The company has a 50 day moving average of $29.13 and a 200 day moving average of $25.52. The company has a current ratio of 3.44, a quick ratio of 3.44 and a debt-to-equity ratio of 0.79.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on ADEA. Weiss Ratings lowered Adeia from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, May 18th. Roth Capital reaffirmed a "buy" rating and issued a $43.00 price objective on shares of Adeia in a research report on Tuesday, May 5th. Rosenblatt Securities reiterated a "buy" rating and issued a $40.00 target price on shares of Adeia in a research note on Tuesday, May 5th. Zacks Research downgraded shares of Adeia from a "hold" rating to a "strong sell" rating in a research report on Friday, July 3rd. Finally, Maxim Group set a $35.00 price target on shares of Adeia in a report on Wednesday, May 6th. Five analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $33.60.

Institutional Investors Weigh In On Adeia

Several hedge funds have recently added to or reduced their stakes in the business. Cerity Partners LLC purchased a new position in shares of Adeia during the 4th quarter valued at about $253,000. Fox Run Management L.L.C. grew its holdings in Adeia by 23.2% during the fourth quarter. Fox Run Management L.L.C. now owns 14,267 shares of the company's stock worth $246,000 after acquiring an additional 2,684 shares during the period. Russell Investments Group Ltd. raised its position in Adeia by 3,519.8% during the third quarter. Russell Investments Group Ltd. now owns 13,502 shares of the company's stock valued at $227,000 after acquiring an additional 13,129 shares in the last quarter. Tower Research Capital LLC TRC raised its position in Adeia by 113.8% during the second quarter. Tower Research Capital LLC TRC now owns 14,703 shares of the company's stock valued at $208,000 after acquiring an additional 7,826 shares in the last quarter. Finally, Corient Private Wealth LLC lifted its holdings in Adeia by 13.7% in the fourth quarter. Corient Private Wealth LLC now owns 11,738 shares of the company's stock valued at $202,000 after acquiring an additional 1,410 shares during the period. 97.36% of the stock is owned by hedge funds and other institutional investors.

Adeia Company Profile

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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