Analog Devices, Inc. (NASDAQ:ADI) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is broadly positive for Analog Devices, with 31 brokerages averaging a “Moderate Buy” rating. The consensus 12-month price target is about $429.85, and most analysts currently rate the stock as a buy or strong buy.
• Recent earnings beat expectations, as Analog Devices reported $3.09 EPS versus $2.89 expected and revenue of $3.62 billion versus $3.51 billion forecast. Revenue rose 37.2% year over year, and the company’s next-quarter guidance also came in above Wall Street estimates.
• The stock was trading up 3.3% around $397.07, near its 52-week high, while the company also announced a $1.10 quarterly dividend payable June 16. Insider sales were disclosed, but institutional ownership remains high at 86.81%.

Analog Devices, Inc. (NASDAQ:ADI - Get Free Report) has earned an average recommendation of "Moderate Buy" from the thirty-one brokerages that are currently covering the company, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold recommendation, twenty-five have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $429.8519.

A number of research analysts have recently weighed in on the company. Stifel Nicolaus raised their price target on Analog Devices from $405.00 to $450.00 and gave the company a "buy" rating in a research report on Monday. Piper Sandler lifted their price objective on Analog Devices from $250.00 to $360.00 and gave the stock a "neutral" rating in a research report on Thursday, February 19th. The Goldman Sachs Group reiterated a "buy" rating and set a $450.00 price objective on shares of Analog Devices in a research report on Wednesday. Arete Research upgraded Analog Devices from a "neutral" rating to a "buy" rating and set a $389.00 price objective for the company in a research report on Monday, March 30th. Finally, Oppenheimer lifted their price objective on Analog Devices from $400.00 to $450.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 12th.

Analog Devices Trading Up 3.3%

Shares of ADI stock opened at $397.07 on Friday. Analog Devices has a fifty-two week low of $206.00 and a fifty-two week high of $435.72. The stock has a market cap of $193.41 billion, a P/E ratio of 59.00, a P/E/G ratio of 1.28 and a beta of 1.19. The business has a fifty day simple moving average of $361.62 and a 200-day simple moving average of $315.79. The company has a quick ratio of 1.35, a current ratio of 1.75 and a debt-to-equity ratio of 0.21.

Analog Devices (NASDAQ:ADI - Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The semiconductor company reported $3.09 earnings per share for the quarter, beating analysts' consensus estimates of $2.89 by $0.20. Analog Devices had a return on equity of 14.37% and a net margin of 26.01%.The business had revenue of $3.62 billion during the quarter, compared to analysts' expectations of $3.51 billion. During the same quarter last year, the business posted $1.85 earnings per share. The business's revenue for the quarter was up 37.2% on a year-over-year basis. Analog Devices has set its Q3 2026 guidance at 3.150-3.450 EPS. On average, analysts forecast that Analog Devices will post 11.47 earnings per share for the current fiscal year.

Analog Devices Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be given a dividend of $1.10 per share. This represents a $4.40 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Tuesday, June 2nd. Analog Devices's dividend payout ratio (DPR) is currently 80.44%.

Insider Transactions at Analog Devices

In other Analog Devices news, CEO Vincent Roche sold 10,000 shares of the firm's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $397.91, for a total value of $3,979,100.00. Following the sale, the chief executive officer directly owned 187,538 shares of the company's stock, valued at approximately $74,623,245.58. This trade represents a 5.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michael Sondel sold 4,199 shares of the firm's stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $361.02, for a total value of $1,515,922.98. Following the completion of the sale, the chief accounting officer directly owned 14,740 shares in the company, valued at approximately $5,321,434.80. The trade was a 22.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 24,199 shares of company stock valued at $8,676,423. 0.36% of the stock is currently owned by company insiders.

Institutional Trading of Analog Devices

A number of hedge funds have recently added to or reduced their stakes in the business. Riverbend Wealth Management LLC lifted its stake in shares of Analog Devices by 2.2% in the 1st quarter. Riverbend Wealth Management LLC now owns 1,245 shares of the semiconductor company's stock valued at $396,000 after purchasing an additional 27 shares in the last quarter. Bridgewater Advisors Inc. lifted its stake in shares of Analog Devices by 1.5% in the 1st quarter. Bridgewater Advisors Inc. now owns 1,805 shares of the semiconductor company's stock valued at $574,000 after purchasing an additional 27 shares in the last quarter. Silicon Valley Capital Partners lifted its stake in shares of Analog Devices by 4.2% in the 1st quarter. Silicon Valley Capital Partners now owns 672 shares of the semiconductor company's stock valued at $214,000 after purchasing an additional 27 shares in the last quarter. Sound Income Strategies LLC lifted its stake in shares of Analog Devices by 12.0% in the 1st quarter. Sound Income Strategies LLC now owns 281 shares of the semiconductor company's stock valued at $90,000 after purchasing an additional 30 shares in the last quarter. Finally, 1620 Investment Advisors Inc. lifted its stake in shares of Analog Devices by 5.0% in the 4th quarter. 1620 Investment Advisors Inc. now owns 671 shares of the semiconductor company's stock valued at $182,000 after purchasing an additional 32 shares in the last quarter. 86.81% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Analog Devices

Here are the key news stories impacting Analog Devices this week:

• Positive Sentiment: Analog Devices reported fiscal Q2 results that beat expectations, with revenue up 37.2% year over year and guidance for next quarter coming in above Wall Street estimates, reinforcing momentum in industrial, data center, and power products.
• Positive Sentiment: Several analysts raised price targets after the earnings beat, including Baird and Needham, signaling higher confidence in ADI’s execution and growth outlook.
• Positive Sentiment: ADI announced a $1.5 billion all-cash acquisition of Empower Semiconductor, a move aimed at strengthening its AI power solutions business as demand for AI infrastructure accelerates. Analog Devices Expands AI Power Strategy with $1.5B Empower Acquisition
• Positive Sentiment: Management also highlighted surging AI infrastructure demand, suggesting ADI is increasingly tied to the buildout of hyperscale and data center power/optical systems. Analog Devices CEO drops bombshell message on exploding AI infrastructure demand
• Neutral Sentiment: Analog Devices said CFO Richard Puccio will speak at the Bank of America Global Technology Conference on June 2, which could offer more color on business trends but is not a major fundamental event. Analog Devices to Participate in the Bank of America Global Technology Conference

About Analog Devices

Analog Devices, Inc NASDAQ: ADI is a multinational semiconductor company that designs, manufactures and markets a broad portfolio of analog, mixed-signal and digital signal processing integrated circuits. Founded in 1965 by Ray Stata and Matthew Lorber, the company has grown into a leading supplier of components that convert, condition and process real-world signals for electronic systems. Analog Devices is headquartered in Massachusetts and serves customers around the world across multiple end markets.

The company's product lineup includes data converters (ADCs and DACs), amplifiers, power management ICs, radio-frequency (RF) and microwave components, sensors and MEMS devices, signal chain and isolation products, timing and clocking solutions, and embedded processors and software for system-level design.

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