Analog Devices (NASDAQ:ADI) Receives "Buy" Rating from TD Cowen

Key Points

• TD Cowen reaffirmed its “Buy” rating on Analog Devices and set a $460 price target, implying 22.47% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of $446.
• Analog Devices reported strong fiscal third-quarter results, with revenue up 39.2% year over year to $4.02 billion and EPS of $3.45, both exceeding estimates. Its fiscal fourth-quarter guidance also topped expectations, supported by AI, data-center and industrial demand.
• Shares traded around $375.60, below the 50-day moving average, while the stock carries an elevated P/E near 56. Recent insider activity has been weighted toward selling, presenting a potential risk if AI-driven growth expectations ease.

Analog Devices (NASDAQ:ADI - Get Free Report)'s stock had its "buy" rating reissued by investment analysts at TD Cowen in a note issued to investors on Thursday,Benzinga reports. They presently have a $460.00 price target on the semiconductor company's stock. TD Cowen's price target indicates a potential upside of 22.47% from the company's previous close.

Several other analysts have also weighed in on the stock. Stifel Nicolaus boosted their target price on shares of Analog Devices from $450.00 to $498.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Barclays lifted their price target on shares of Analog Devices from $430.00 to $450.00 and gave the company an "overweight" rating in a report on Thursday, May 21st. Wolfe Research reiterated an "outperform" rating and set a $475.00 price objective on shares of Analog Devices in a research note on Thursday, May 21st. Wall Street Zen raised shares of Analog Devices from a "hold" rating to a "buy" rating in a report on Sunday, May 24th. Finally, KeyCorp upped their target price on Analog Devices from $500.00 to $525.00 and gave the company an "overweight" rating in a report on Tuesday, July 14th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $446.00.

Analog Devices Stock Up 0.6%

Analog Devices stock traded up $2.34 during midday trading on Thursday, hitting $375.60. The stock had a trading volume of 524,071 shares, compared to its average volume of 4,193,497. The business has a fifty day moving average price of $389.98 and a 200 day moving average price of $370.68. Analog Devices has a 12 month low of $223.47 and a 12 month high of $445.91. The stock has a market cap of $182.95 billion, a P/E ratio of 55.79, a P/E/G ratio of 0.98 and a beta of 1.20. The company has a current ratio of 1.75, a quick ratio of 1.34 and a debt-to-equity ratio of 0.21.

Analog Devices (NASDAQ:ADI - Get Free Report) last issued its earnings results on Wednesday, August 19th. The semiconductor company reported $3.45 EPS for the quarter, topping the consensus estimate of $3.34 by $0.11. Analog Devices had a return on equity of 14.37% and a net margin of 26.01%.The company had revenue of $4.02 billion during the quarter, compared to analyst estimates of $3.91 billion. During the same quarter last year, the firm earned $2.05 EPS. The business's revenue was up 39.2% on a year-over-year basis. Analog Devices has set its Q4 2026 guidance at 3.710-4.010 EPS. Research analysts predict that Analog Devices will post 12.42 EPS for the current year.

Insider Activity

In other news, Director Karen Golz sold 1,000 shares of the business's stock in a transaction that occurred on Monday, July 13th. The stock was sold at an average price of $389.83, for a total transaction of $389,830.00. Following the completion of the transaction, the director directly owned 11,019 shares in the company, valued at approximately $4,295,536.77. The trade was a 8.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ray Stata sold 1,416 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $377.37, for a total value of $534,355.92. Following the transaction, the director owned 114,511 shares of the company's stock, valued at approximately $43,213,016.07. This represents a 1.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 105,274 shares of company stock worth $42,247,986 over the last ninety days. 0.36% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Fosun International Ltd increased its holdings in shares of Analog Devices by 47.1% during the second quarter. Fosun International Ltd now owns 3,121 shares of the semiconductor company's stock valued at $1,240,000 after purchasing an additional 1,000 shares during the period. Sigma Planning Corp grew its position in Analog Devices by 28.5% in the 2nd quarter. Sigma Planning Corp now owns 5,848 shares of the semiconductor company's stock valued at $2,323,000 after buying an additional 1,298 shares in the last quarter. Two Sigma Securities LLC acquired a new position in Analog Devices during the 2nd quarter valued at about $5,730,000. GTS Securities LLC bought a new stake in shares of Analog Devices during the 2nd quarter worth about $981,000. Finally, Alyeska Investment Group L.P. lifted its stake in shares of Analog Devices by 7.8% in the 2nd quarter. Alyeska Investment Group L.P. now owns 895,211 shares of the semiconductor company's stock worth $355,551,000 after acquiring an additional 64,424 shares during the period. Institutional investors own 86.81% of the company's stock.

Key Headlines Impacting Analog Devices

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

• Positive Sentiment: Strong fiscal Q3 results: Revenue rose 39.2% year over year to a record $4.02 billion, exceeding the roughly $3.91 billion consensus estimate. Adjusted EPS of $3.45 also surpassed expectations of approximately $3.34. Growth was led by data-center and industrial demand, with data-center revenue reportedly more than doubling. Analog Devices Reports Record Fiscal Third Quarter 2026 Financial Results
• Positive Sentiment: Above-consensus outlook: Analog Devices guided for fiscal Q4 revenue of $4.2 billion to $4.4 billion and adjusted EPS of $3.71 to $4.01, above Wall Street expectations of about $4.1 billion in revenue and $3.53 in EPS. The guidance supports the view that AI infrastructure, power-management chips and industrial applications can sustain momentum into 2027. Analog Devices’ quarterly forecast tops estimates on AI-fueled chip demand
• Positive Sentiment: Analyst support increased: Needham raised its price target from $440 to $450 and assigned a Buy rating. Susquehanna reiterated Buy with a $475 target, while TD Cowen maintained Buy with a $460 target, citing AI and data-center strength. Analog Devices analyst reiterates Buy rating and lifts price target
• Neutral Sentiment: The board declared a quarterly dividend of $1.10 per share, payable September 15 to shareholders of record September 1. This provides shareholder returns but represents a relatively modest yield.
• Negative Sentiment: At roughly $373, ADI remains below its 50-day moving average of about $390 and trades at an elevated P/E near 55.5, leaving the stock vulnerable to profit-taking if AI growth expectations moderate. Reported insider activity also shows substantially more selling than buying in recent months.

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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