Analog Devices (NASDAQ:ADI) Releases Quarterly Earnings Results

Key Points

• Analog Devices reported quarterly earnings of $2.05 EPS, exceeding analysts' expectations of $1.93 by $0.12, with a net margin of 18.65%.
• The company announced a quarterly dividend of $0.99 per share, representing an annual yield of 1.7%, despite a high payout ratio of 107.90%.
• Several institutional investors have significantly increased their stakes in Analog Devices, with Rafferty Asset Management boosting its position by 47.5% during the second quarter.

Analog Devices (NASDAQ:ADI - Get Free Report) released its quarterly earnings data on Wednesday. The semiconductor company reported $2.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.95 by $0.10, Zacks reports. The company had revenue of $2.88 billion during the quarter, compared to the consensus estimate of $2.76 billion. Analog Devices had a net margin of 18.85% and a return on equity of 10.32%. Analog Devices's revenue for the quarter was up 24.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.58 earnings per share. Analog Devices updated its Q4 2025 guidance to 2.120-2.320 EPS.

Analog Devices Stock Performance

ADI traded up $5.25 during trading on Friday, hitting $252.20. The stock had a trading volume of 4,988,997 shares, compared to its average volume of 3,656,419. Analog Devices has a twelve month low of $158.65 and a twelve month high of $257.22. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.51 and a current ratio of 2.32. The company's 50-day moving average price is $234.80 and its 200 day moving average price is $217.35. The firm has a market capitalization of $125.15 billion, a P/E ratio of 64.34, a PEG ratio of 2.19 and a beta of 1.05.

Analog Devices Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be given a $0.99 dividend. This represents a $3.96 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Tuesday, September 2nd. Analog Devices's dividend payout ratio (DPR) is 101.02%.

Insider Buying and Selling

In other Analog Devices news, Director Ray Stata sold 3,125 shares of Analog Devices stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $239.23, for a total value of $747,593.75. Following the sale, the director owned 167,571 shares of the company's stock, valued at approximately $40,088,010.33. The trade was a 1.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.33% of the stock is currently owned by insiders.

Institutional Trading of Analog Devices

Several hedge funds have recently modified their holdings of the business. Geneos Wealth Management Inc. grew its holdings in Analog Devices by 21.0% during the second quarter. Geneos Wealth Management Inc. now owns 4,605 shares of the semiconductor company's stock worth $1,096,000 after acquiring an additional 800 shares during the period. Evergreen Capital Management LLC grew its holdings in shares of Analog Devices by 9.0% in the 2nd quarter. Evergreen Capital Management LLC now owns 5,212 shares of the semiconductor company's stock worth $1,241,000 after acquiring an additional 429 shares during the period. CANADA LIFE ASSURANCE Co boosted its position in shares of Analog Devices by 12.5% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 579,692 shares of the semiconductor company's stock worth $138,159,000 after buying an additional 64,281 shares in the last quarter. MUFG Securities EMEA plc purchased a new stake in Analog Devices in the 2nd quarter valued at approximately $348,000. Finally, Howland Capital Management LLC acquired a new stake in Analog Devices during the 2nd quarter valued at $210,000. 86.81% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. JPMorgan Chase & Co. boosted their target price on Analog Devices from $300.00 to $310.00 and gave the company an "overweight" rating in a report on Thursday. Wall Street Zen upgraded Analog Devices from a "hold" rating to a "buy" rating in a research note on Saturday, May 24th. Wells Fargo & Company increased their price objective on Analog Devices from $235.00 to $250.00 and gave the company an "equal weight" rating in a report on Thursday. Morgan Stanley lifted their target price on shares of Analog Devices from $273.00 to $288.00 and gave the company an "overweight" rating in a report on Thursday. Finally, Cowen reiterated a "buy" rating on shares of Analog Devices in a research report on Friday, May 23rd. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, Analog Devices currently has a consensus rating of "Moderate Buy" and an average price target of $273.53.

About Analog Devices

Analog Devices, Inc designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs.