Adeia (NASDAQ:ADEA) Sets New 12-Month High - What's Next?

Key Points

• Adeia shares hit a new 52-week high, trading as high as $23.37 (last $22.99) on heavy volume and were up about 3%.
• The company beat quarterly earnings and revenue estimates—EPS $0.86 vs. $0.73 expected and revenue $182.6M vs. $168.5M—with strong profitability (ROE 38.0%, net margin 25.1%).
• Analysts are largely positive with a "Moderate Buy" consensus and an average price target of $27.20, while institutions own about 97.36% of the stock and have been increasing positions.

Adeia Inc. (NASDAQ:ADEA - Get Free Report) shares reached a new 52-week high on Wednesday . The company traded as high as $23.37 and last traded at $22.99, with a volume of 2235671 shares trading hands. The stock had previously closed at $22.31.

Analysts Set New Price Targets

ADEA has been the subject of several research analyst reports. Wall Street Zen upgraded shares of Adeia from a "hold" rating to a "strong-buy" rating in a research note on Saturday. Zacks Research lowered Adeia from a "strong-buy" rating to a "hold" rating in a report on Thursday, February 26th. Roth Mkm reissued a "buy" rating on shares of Adeia in a research report on Monday, December 22nd. Maxim Group boosted their target price on Adeia from $17.00 to $20.00 and gave the company a "buy" rating in a research note on Tuesday, December 23rd. Finally, UBS Group set a $20.00 price target on Adeia in a research report on Tuesday, December 23rd. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, Adeia has an average rating of "Moderate Buy" and an average price target of $27.20.

Adeia Trading Up 3.0%

The stock has a market cap of $2.51 billion, a PE ratio of 23.46 and a beta of 1.41. The firm has a 50-day simple moving average of $19.07 and a 200-day simple moving average of $16.50. The company has a quick ratio of 3.81, a current ratio of 3.81 and a debt-to-equity ratio of 0.83.

Adeia (NASDAQ:ADEA - Get Free Report) last announced its quarterly earnings results on Monday, February 23rd. The company reported $0.86 earnings per share for the quarter, beating the consensus estimate of $0.73 by $0.13. The company had revenue of $182.64 million during the quarter, compared to analysts' expectations of $168.45 million. Adeia had a return on equity of 38.01% and a net margin of 25.05%. Equities analysts forecast that Adeia Inc. will post 1.09 earnings per share for the current year.

Adeia Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 30th. Shareholders of record on Monday, March 16th will be issued a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Monday, March 16th. Adeia's payout ratio is presently 20.41%.

Institutional Investors Weigh In On Adeia

A number of institutional investors and hedge funds have recently modified their holdings of the company. Wellington Management Group LLP boosted its position in shares of Adeia by 64.5% in the fourth quarter. Wellington Management Group LLP now owns 1,998,488 shares of the company's stock valued at $34,474,000 after acquiring an additional 783,869 shares during the period. Systematic Financial Management LP lifted its stake in Adeia by 27.9% in the 4th quarter. Systematic Financial Management LP now owns 2,891,131 shares of the company's stock worth $49,872,000 after purchasing an additional 630,039 shares in the last quarter. Deutsche Bank AG lifted its stake in Adeia by 386.1% in the 4th quarter. Deutsche Bank AG now owns 732,859 shares of the company's stock worth $12,642,000 after purchasing an additional 582,106 shares in the last quarter. The Manufacturers Life Insurance Company boosted its holdings in Adeia by 19.3% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,765,859 shares of the company's stock valued at $39,109,000 after purchasing an additional 448,274 shares during the period. Finally, JPMorgan Chase & Co. grew its position in shares of Adeia by 110.7% during the 2nd quarter. JPMorgan Chase & Co. now owns 752,786 shares of the company's stock valued at $10,644,000 after purchasing an additional 395,462 shares in the last quarter. 97.36% of the stock is owned by hedge funds and other 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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