Analog Devices (NASDAQ:ADI) Shares Gap Up Following Earnings Beat

Key Points

• Analog Devices reported a stronger than expected earnings of $2.05 per share, surpassing analysts' estimate of $1.93, with a revenue increase of 24.6% year-over-year.
• The company announced a quarterly dividend of $0.99, translating to an annualized rate of $3.96 and a yield of 1.7%, although the dividend payout ratio is currently at 107.90%.
• Wall Street analysts maintain a generally positive outlook with a consensus rating of "Moderate Buy" and a target price averaging $258.89.

Analog Devices, Inc. (NASDAQ:ADI - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $230.44, but opened at $239.69. Analog Devices shares last traded at $234.75, with a volume of 1,608,490 shares traded.

The semiconductor company reported $2.05 earnings per share for the quarter, topping analysts' consensus estimates of $1.93 by $0.12. Analog Devices had a return on equity of 9.56% and a net margin of 18.65%.During the same period last year, the business posted $1.58 earnings per share. The company's revenue was up 24.6% compared to the same quarter last year. Analog Devices has set its Q4 2025 guidance at 2.120-2.320 EPS.

Analog Devices Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders 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 1.7%. Analog Devices's dividend payout ratio (DPR) is presently 107.90%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. KeyCorp boosted their target price on shares of Analog Devices from $285.00 to $300.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. Piper Sandler reduced their price objective on Analog Devices from $240.00 to $215.00 and set a "neutral" rating for the company in a research report on Friday, May 23rd. The Goldman Sachs Group initiated coverage on Analog Devices in a research report on Thursday, July 10th. They issued a "buy" rating and a $285.00 target price on the stock. Seaport Res Ptn upgraded Analog Devices from a "strong sell" rating to a "hold" rating in a research note on Monday, July 21st. Finally, Cfra Research cut shares of Analog Devices from a "strong-buy" rating to a "moderate buy" rating in a research note on Thursday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, Analog Devices has a consensus rating of "Moderate Buy" and a consensus target price of $258.89.

Insider Buying and Selling at Analog Devices

In other Analog Devices news, Director Ray Stata sold 3,125 shares of the stock in a transaction 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 completion of the sale, the director owned 167,571 shares in the company, valued at approximately $40,088,010.33. This represents a 1.83% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.33% of the company's stock.

Hedge Funds Weigh In On Analog Devices

Several institutional investors have recently bought and sold shares of the stock. Norges Bank bought a new position in shares of Analog Devices during the 2nd quarter valued at about $1,803,377,000. Price T Rowe Associates Inc. MD lifted its position in shares of Analog Devices by 26.7% in the first quarter. Price T Rowe Associates Inc. MD now owns 11,425,084 shares of the semiconductor company's stock worth $2,304,098,000 after buying an additional 2,407,460 shares in the last quarter. GAMMA Investing LLC boosted its stake in Analog Devices by 25,460.1% during the first quarter. GAMMA Investing LLC now owns 2,211,715 shares of the semiconductor company's stock valued at $446,037,000 after buying an additional 2,203,062 shares during the last quarter. Nuveen LLC purchased a new position in Analog Devices during the 1st quarter valued at approximately $351,943,000. Finally, Kovitz Investment Group Partners LLC grew its holdings in Analog Devices by 301.1% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 1,581,157 shares of the semiconductor company's stock valued at $335,933,000 after buying an additional 1,186,981 shares in the last quarter. 86.81% of the stock is owned by hedge funds and other institutional investors.

Analog Devices Trading Up 2.9%

The firm has a market cap of $117.63 billion, a P/E ratio of 64.71, a P/E/G ratio of 2.13 and a beta of 1.05. The stock has a 50 day simple moving average of $233.72 and a 200-day simple moving average of $216.55. The company has a current ratio of 2.08, a quick ratio of 1.51 and a debt-to-equity ratio of 0.19.

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.

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