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

Key Points

• Analysts remain bullish on Analog Devices, giving it a consensus rating of “Moderate Buy” from 29 firms. The average 12-month price target is about $439.79, above the stock’s recent trading level.
• Recent earnings were strong, with Analog Devices reporting EPS of $3.09 versus estimates of $2.89 and revenue of $3.62 billion versus expectations of $3.51 billion. Quarterly revenue also rose 37.2% year over year, and management issued guidance above prior expectations.
• Insider selling and active capital returns were notable, including multiple executive share sales over the past few months and a recent quarterly dividend of $1.10 per share. The dividend works out to an annualized $4.40 per share, or a 1.1% yield.

Analog Devices, Inc. (NASDAQ:ADI - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twenty-nine ratings firms that are covering the firm, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold rating, twenty-four have given a buy rating and two have issued a strong buy rating on the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $439.7931.

A number of research analysts have weighed in on the stock. Wall Street Zen raised shares of Analog Devices from a "hold" rating to a "buy" rating in a research note on Sunday, May 24th. Citigroup upped their price target on Analog Devices from $400.00 to $460.00 and gave the company a "buy" rating in a research report on Thursday, May 21st. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $450.00 price target on shares of Analog Devices in a report on Wednesday, May 20th. Argus set a $460.00 target price on Analog Devices in a report on Tuesday, May 26th. Finally, Wolfe Research reaffirmed an "outperform" rating and issued a $475.00 target price on shares of Analog Devices in a research note on Thursday, May 21st.

Analog Devices News Roundup

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

• Positive Sentiment: ADI continues to benefit from strong operating results, including a recent earnings beat, revenue growth of 37.2% year over year, and quarterly guidance that remains above prior expectations, which supports the stock’s longer-term outlook.
• Positive Sentiment: Wall Street sentiment remains constructive, with multiple Buy ratings and an average price target above the current trading range, suggesting analysts still see upside in Analog Devices.
• Positive Sentiment: Earlier coverage highlighted a new $3.0 billion revolving credit facility and the company’s more than $1 billion Oregon facility expansion, both of which improve financial flexibility and reinforce long-term growth capacity. Analog Devices (ADI) Could Be 16% Undervalued As It Secures A $3.0b Credit Facility
• Neutral Sentiment: Recent market articles said ADI has generally outperformed the broader market, but also noted it lagged some semiconductor peers on certain trading days, pointing to steady but not decisive momentum. Analog Devices (ADI) Surpasses Market Returns: Some Facts Worth Knowing
• Negative Sentiment: Director Ray Stata sold 1,416 shares in a pre-arranged Rule 10b5-1 plan. The sale was disclosed and appears routine, but insider selling can still slightly weigh on investor sentiment. SEC Form 4 for Ray Stata transaction

Analog Devices Price Performance

NASDAQ ADI traded up $2.01 during mid-day trading on Friday, hitting $395.65. The stock had a trading volume of 2,325,797 shares, compared to its average volume of 5,064,628. The firm's 50 day moving average is $408.87 and its 200 day moving average is $353.18. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.75 and a quick ratio of 1.34. The stock has a market capitalization of $192.72 billion, a price-to-earnings ratio of 58.79, a PEG ratio of 1.11 and a beta of 1.18. Analog Devices has a twelve month low of $218.37 and a twelve month high of $445.91.

Analog Devices (NASDAQ:ADI - Get Free Report) last issued its earnings results on Wednesday, May 20th. The semiconductor company reported $3.09 EPS for the quarter, beating analysts' consensus estimates of $2.89 by $0.20. The business had revenue of $3.62 billion during the quarter, compared to analysts' expectations of $3.51 billion. Analog Devices had a net margin of 26.01% and a return on equity of 14.37%. The company's quarterly revenue was up 37.2% compared to the same quarter last year. During the same period in the prior year, the business earned $1.85 earnings per share. Analog Devices has set its Q3 2026 guidance at 3.150-3.450 EPS. Equities research analysts forecast that Analog Devices will post 12.41 earnings per share for the current fiscal year.

Analog Devices Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were given a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a yield of 1.1%. The ex-dividend date was Tuesday, June 2nd. Analog Devices's dividend payout ratio (DPR) is presently 65.38%.

Insider Activity

In other news, SVP Martin Cotter sold 17,594 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $418.00, for a total transaction of $7,354,292.00. Following the completion of the sale, the senior vice president owned 56,332 shares in the company, valued at $23,546,776. This trade represents a 23.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Karen Golz sold 1,000 shares of Analog Devices stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $411.95, for a total transaction of $411,950.00. Following the sale, the director directly owned 12,019 shares in the company, valued at approximately $4,951,227.05. The trade was a 7.68% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 102,858 shares of company stock valued at $41,672,900 over the last three months. 0.36% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Analog Devices

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its position in shares of Analog Devices by 39.5% during the 4th quarter. Brighton Jones LLC now owns 1,867 shares of the semiconductor company's stock worth $397,000 after purchasing an additional 529 shares during the last quarter. Sivia Capital Partners LLC boosted its stake in Analog Devices by 36.0% during the second quarter. Sivia Capital Partners LLC now owns 1,752 shares of the semiconductor company's stock worth $417,000 after buying an additional 464 shares during the period. Ieq Capital LLC increased its position in shares of Analog Devices by 38.0% during the second quarter. Ieq Capital LLC now owns 44,576 shares of the semiconductor company's stock valued at $10,610,000 after acquiring an additional 12,276 shares during the last quarter. HUB Investment Partners LLC acquired a new stake in shares of Analog Devices during the second quarter valued at about $644,000. Finally, Peapack Gladstone Financial Corp raised its stake in shares of Analog Devices by 2.4% in the 2nd quarter. Peapack Gladstone Financial Corp now owns 60,169 shares of the semiconductor company's stock valued at $14,322,000 after acquiring an additional 1,406 shares during the period. Institutional investors and hedge funds own 86.81% of the company's stock.

Analog Devices Company Profile

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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