Adeia (NASDAQ:ADEA) Reaches New 1-Year High - Still a Buy?

Key Points

• Adeia hit a new 52-week high of $30.84 (last $30.72) on Wednesday with roughly 630,900 shares traded.
• Analysts are largely bullish — one Strong Buy and five Buy ratings yield an average target of $28.80, while firms like Rosenblatt and Roth MKM have raised targets to $40 and $34 respectively.
• The company posted an earnings beat (EPS $0.86 vs. $0.73 est.) and revenue of $182.6M vs. $168.5M, with strong profitability (ROE 38%, net margin 25%), and recently declared a $0.05 quarterly dividend (0.6% yield).

Adeia Inc. (NASDAQ:ADEA - Get Free Report)'s stock price reached a new 52-week high on Wednesday . The stock traded as high as $30.84 and last traded at $30.72, with a volume of 630884 shares changing hands. The stock had previously closed at $30.23.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on ADEA. Weiss Ratings upgraded Adeia from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, January 12th. Roth Mkm increased their price target on Adeia from $27.00 to $34.00 and gave the company a "buy" rating in a report on Monday, March 16th. Rosenblatt Securities reiterated a "buy" rating and issued a $40.00 target price on shares of Adeia in a research note on Thursday, April 2nd. Wall Street Zen lowered Adeia from a "strong-buy" rating to a "buy" rating in a research note on Saturday, April 11th. Finally, Zacks Research upgraded Adeia from a "hold" rating to a "strong-buy" rating in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating and five have assigned a Buy rating to the stock. Based on data from MarketBeat, Adeia presently has an average rating of "Buy" and an average target price of $28.80.

Adeia Stock Performance

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 business has a 50 day simple moving average of $24.29 and a two-hundred day simple moving average of $18.95. The firm has a market cap of $3.43 billion, a PE ratio of 31.59 and a beta of 1.30.

Adeia (NASDAQ:ADEA - Get Free Report) last released its earnings results on Monday, February 23rd. The company reported $0.86 earnings per share for the quarter, topping analysts' consensus estimates 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 analyst estimates of $168.45 million. As a group, equities research analysts forecast that Adeia Inc. will post 1.11 earnings per share for the current fiscal year.

Adeia Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 30th. Stockholders of record on Monday, March 16th were paid a dividend of $0.05 per share. The ex-dividend date was Monday, March 16th. This represents a $0.20 annualized dividend and a dividend yield of 0.6%. Adeia's dividend payout ratio (DPR) is currently 20.41%.

Hedge Funds Weigh In On Adeia

Several institutional investors have recently made changes to their positions in ADEA. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Adeia by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 64,701 shares of the company's stock valued at $855,000 after buying an additional 2,829 shares during the period. Caxton Associates LLP purchased a new position in shares of Adeia during the first quarter valued at $174,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Adeia by 22.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 231,421 shares of the company's stock valued at $3,059,000 after buying an additional 42,918 shares during the period. Jane Street Group LLC increased its stake in shares of Adeia by 1,193.2% during the first quarter. Jane Street Group LLC now owns 348,961 shares of the company's stock valued at $4,613,000 after buying an additional 321,976 shares during the period. Finally, Focus Partners Wealth purchased a new position in shares of Adeia during the first quarter valued at $167,000. Hedge funds and other institutional investors own 97.36% of the company's stock.

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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