Adeia (NASDAQ:ADEA) Trading 11.9% Higher Following Dividend Announcement

Key Points

• Adeia Inc. shares surged 11.9% during mid-day trading, reaching up to $14.40 before closing at $13.98, following a prior close of $12.49.
• Several research firms have issued buy ratings for Adeia, with price targets ranging from $17.00 to $26.00.
• Institutional investors have significantly increased their stakes in Adeia, with hedge funds now owning over 97% of the stock.

Shares of Adeia Inc. (NASDAQ:ADEA - Get Free Report) shot up 11.9% during mid-day trading on Wednesday after the company announced a dividend. The stock traded as high as $14.40 and last traded at $13.98. 188,137 shares traded hands during trading, a decline of 68% from the average session volume of 583,910 shares. The stock had previously closed at $12.49.

The newly announced dividend which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, August 26th will be given a $0.05 dividend. The ex-dividend date of this dividend is Tuesday, August 26th. This represents a $0.20 annualized dividend and a yield of 1.4%. Adeia's dividend payout ratio (DPR) is 27.03%.

Wall Street Analysts Forecast Growth

Several research firms have commented on ADEA. Wall Street Zen lowered Adeia from a "buy" rating to a "hold" rating in a research report on Saturday. Roth Capital started coverage on Adeia in a research report on Friday, June 20th. They issued a "buy" rating and a $26.00 price objective on the stock. BWS Financial restated a "buy" rating and set a $18.00 target price on shares of Adeia in a research note on Wednesday. Finally, Rosenblatt Securities restated a "buy" rating and set a $17.00 target price on shares of Adeia in a research note on Tuesday, May 6th. One equities research analyst has rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat.com, Adeia has an average rating of "Moderate Buy" and a consensus target price of $19.50.

Adeia Stock Up 3.3%

The firm has a market capitalization of $1.54 billion, a price-to-earnings ratio of 19.23 and a beta of 1.53. The stock has a 50 day moving average of $13.72 and a 200 day moving average of $13.48. The company has a quick ratio of 3.09, a current ratio of 3.09 and a debt-to-equity ratio of 1.06.

Hedge Funds Weigh In On Adeia

A number of hedge funds have recently bought and sold shares of the company. Intech Investment Management LLC grew its stake in Adeia by 1.8% in the second quarter. Intech Investment Management LLC now owns 427,707 shares of the company's stock worth $6,048,000 after purchasing an additional 7,581 shares in the last quarter. Creative Planning acquired a new position in Adeia in the second quarter worth about $144,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its stake in Adeia by 6.5% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 27,856 shares of the company's stock worth $394,000 after purchasing an additional 1,708 shares in the last quarter. Police & Firemen s Retirement System of New Jersey grew its stake in Adeia by 9.0% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 24,767 shares of the company's stock worth $350,000 after purchasing an additional 2,047 shares in the last quarter. Finally, Bailard Inc. grew its stake in Adeia by 6.6% in the second quarter. Bailard Inc. now owns 48,300 shares of the company's stock worth $683,000 after purchasing an additional 3,000 shares in the last quarter. 97.36% of the stock is currently owned by institutional investors and hedge funds.

About Adeia

Adeia Inc, together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies.