Analog Devices (NASDAQ:ADI) Shares Gap Down - Time to Sell?

Key Points

• Analog Devices shares gapped down at the open, falling from a prior close of $414.31 to an opening price of $390.00, suggesting a possible sell-the-news reaction after recent gains.
• The company delivered a strong fiscal Q2 beat, reporting EPS of $3.09 on revenue of $3.62 billion, both above estimates, with revenue up 37.2% year over year.
• Management issued upbeat fiscal Q3 guidance and highlighted continued demand in AI-related power management and sensor products, while also announcing a $1.5 billion all-cash acquisition of Empower Semiconductor to bolster its AI power-delivery business.

Analog Devices, Inc. (NASDAQ:ADI - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $414.31, but opened at $390.00. Analog Devices shares last traded at $395.2870, with a volume of 1,491,364 shares traded.

Trending Headlines about Analog Devices

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

• Positive Sentiment: Analog Devices reported better-than-expected fiscal Q2 results, with EPS of $3.09 and revenue of $3.62 billion, both ahead of estimates, while revenue rose sharply year over year. Analog Devices Reports Record Fiscal Second Quarter 2026 Financial Results
• Positive Sentiment: The company issued upbeat fiscal Q3 guidance, calling for revenue of about $3.8 billion to $4.0 billion and EPS of $3.15 to $3.45, both above Wall Street expectations. Reuters article
• Positive Sentiment: ADI also said demand remains strong in AI-related power management and sensor products, supporting the growth narrative for its semiconductor business. Benzinga article
• Neutral Sentiment: The company announced a $1.5 billion all-cash acquisition of Empower Semiconductor to strengthen its AI power-delivery portfolio; while strategic, the deal may raise questions about integration risk and capital deployment. Reuters article
• Negative Sentiment: Despite the strong earnings beat, the stock appears to be facing a “sell-the-news” pullback after a significant run-up ahead of earnings, with investors locking in gains. Quiver Quantitative article

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on ADI shares. Benchmark upped their price target on shares of Analog Devices from $285.00 to $400.00 and gave the stock a "buy" rating in a research note on Thursday, February 19th. Evercore reaffirmed an "outperform" rating and set a $387.00 price target on shares of Analog Devices in a research note on Thursday, February 19th. Cantor Fitzgerald upped their price target on shares of Analog Devices from $400.00 to $510.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 13th. Robert W. Baird set a $365.00 price target on shares of Analog Devices in a research note on Thursday, February 19th. Finally, Wells Fargo & Company upped their price target on shares of Analog Devices from $410.00 to $470.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 13th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, Analog Devices currently has a consensus rating of "Moderate Buy" and an average price target of $381.27.

Analog Devices Stock Performance

The company has a current ratio of 1.76, a quick ratio of 1.35 and a debt-to-equity ratio of 0.21. The firm has a market capitalization of $187.86 billion, a price-to-earnings ratio of 70.55, a PEG ratio of 1.68 and a beta of 1.19. The stock's 50 day moving average price is $357.19 and its two-hundred day moving average price is $313.00.

Analog Devices (NASDAQ:ADI - Get Free Report) last posted its quarterly earnings results on Wednesday, May 20th. The semiconductor company reported $3.09 earnings per share for the quarter, topping analysts' consensus estimates of $2.89 by $0.20. The business had revenue of $3.62 billion for the quarter, compared to analysts' expectations of $3.51 billion. Analog Devices had a net margin of 23.02% and a return on equity of 12.49%. The business's revenue for the quarter was up 37.2% on a year-over-year basis. During the same period in the prior year, the company posted $1.85 EPS. Analog Devices has set its Q3 2026 guidance at 3.150-3.450 EPS. On average, analysts forecast that Analog Devices, Inc. will post 11.35 EPS for the current year.

Insider Transactions at Analog Devices

In related news, CEO Vincent Roche sold 10,000 shares of the stock in a transaction dated Friday, May 1st. The shares were 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 represents a 5.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $361.02, for a total transaction 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 SEC filing for this sale provides additional information. Over the last three months, insiders sold 24,199 shares of company stock worth $8,676,423. 0.36% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Analog Devices

Large investors have recently added to or reduced their stakes in the business. Banque Transatlantique SA acquired a new stake in Analog Devices in the 4th quarter valued at about $25,000. Evolution Wealth Management Inc. acquired a new stake in shares of Analog Devices during the 1st quarter worth about $30,000. Hilton Head Capital Partners LLC acquired a new stake in shares of Analog Devices during the 4th quarter worth about $26,000. Gordian Capital Singapore Pte Ltd acquired a new stake in shares of Analog Devices during the 4th quarter worth about $27,000. Finally, Entrust Financial LLC acquired a new stake in shares of Analog Devices during the 4th quarter worth about $33,000. 86.81% of the stock is owned by institutional investors and hedge funds.

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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