Analog Devices, Inc. (NASDAQ:ADI) Receives Average Recommendation of "Buy" from Analysts

Key Points

• Analysts remain bullish on Analog Devices: 26 of 30 covering firms rate the stock “Buy,” with two “Strong Buy” ratings and an average 12-month price target of $457.97.
• Analog Devices beat quarterly expectations, reporting $3.45 in EPS versus $3.34 expected and $4.02 billion in revenue versus $3.92 billion projected; revenue increased 39.2% year over year.
• The company pays a quarterly dividend of $1.10, equivalent to $4.40 annually and a 1.1% yield, while institutional investors own approximately 86.8% of outstanding shares.

Shares of Analog Devices, Inc. (NASDAQ:ADI - Get Free Report) have earned an average rating of "Buy" from the thirty ratings firms that are presently covering the firm, MarketBeat Ratings reports. Two analysts have rated the stock with a hold recommendation, twenty-six have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $457.97.

ADI has been the topic of a number of recent analyst reports. TD Cowen restated a "buy" rating and issued a $460.00 price target on shares of Analog Devices in a research report on Tuesday, September 8th. Weiss Ratings raised shares of Analog Devices from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, August 21st. Sanford C. Bernstein raised shares of Analog Devices from a "market perform" rating to an "outperform" rating and upped their price target for the company from $430.00 to $465.00 in a research report on Wednesday, August 19th. BMO Capital Markets started coverage on Analog Devices in a report on Thursday, August 20th. They set an "outperform" rating and a $430.00 price target for the company. Finally, The Goldman Sachs Group reissued a "buy" rating and issued a $480.00 price objective on shares of Analog Devices in a research report on Wednesday, August 19th.

Analog Devices Stock Down 0.7%

Shares of NASDAQ:ADI opened at $382.61 on Friday. The firm has a market cap of $185.40 billion, a P/E ratio of 45.39, a P/E/G ratio of 1.21 and a beta of 1.20. Analog Devices has a 12-month low of $223.47 and a 12-month high of $445.91. The business has a fifty day simple moving average of $372.56 and a 200 day simple moving average of $376.63. The company has a quick ratio of 0.91, a current ratio of 1.25 and a debt-to-equity ratio of 0.20.

Analog Devices (NASDAQ:ADI - Get Free Report) last issued its quarterly earnings results on Wednesday, August 19th. The semiconductor company reported $3.45 earnings per share for the quarter, beating the consensus estimate of $3.34 by $0.11. The company had revenue of $4.02 billion during the quarter, compared to analysts' expectations of $3.92 billion. Analog Devices had a return on equity of 16.39% and a net margin of 29.79%.The business's quarterly revenue was up 39.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.05 earnings per share. Analog Devices has set its Q4 2026 guidance at 3.710-4.010 EPS. Analysts predict that Analog Devices will post 12.96 earnings per share for the current year.

Analog Devices Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were issued a $1.10 dividend. This represents a $4.40 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date was Tuesday, September 1st. Analog Devices's payout ratio is presently 52.19%.

Insiders Place Their Bets

In other news, CFO Richard C. Puccio, Jr. sold 2,683 shares of Analog Devices stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $374.56, for a total value of $1,004,944.48. Following the completion of the sale, the chief financial officer owned 54,177 shares in the company, valued at $20,292,537.12. The trade was a 4.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Vincent Roche sold 10,000 shares of the business's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $363.00, for a total transaction of $3,630,000.00. Following the transaction, the chief executive officer owned 137,538 shares in the company, valued at $49,926,294. The trade was a 6.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 41,931 shares of company stock valued at $15,560,832 in the last ninety days. 0.36% of the stock is owned by corporate insiders.

Institutional Trading of Analog Devices

A number of institutional investors have recently added to or reduced their stakes in ADI. ING Groep NV raised its stake in Analog Devices by 45.1% during the fourth quarter. ING Groep NV now owns 222,559 shares of the semiconductor company's stock valued at $60,358,000 after buying an additional 69,202 shares during the last quarter. Natixis Advisors LLC boosted its stake in Analog Devices by 2.4% in the 4th quarter. Natixis Advisors LLC now owns 1,002,286 shares of the semiconductor company's stock worth $271,791,000 after purchasing an additional 23,531 shares in the last quarter. National Pension Service grew its position in Analog Devices by 0.5% during the 4th quarter. National Pension Service now owns 1,354,027 shares of the semiconductor company's stock valued at $367,212,000 after purchasing an additional 6,492 shares during the last quarter. Patriot Financial Group Insurance Agency LLC increased its stake in Analog Devices by 108.5% during the 1st quarter. Patriot Financial Group Insurance Agency LLC now owns 20,464 shares of the semiconductor company's stock valued at $6,511,000 after purchasing an additional 10,648 shares in the last quarter. Finally, SBI Okasan Asset Management Co.Ltd. purchased a new position in Analog Devices in the fourth quarter worth about $4,355,000. Hedge funds and other institutional investors own 86.81% of the company's stock.

About Analog Devices

Analog Devices, Inc NASDAQ: ADI is a global semiconductor company that designs and manufactures high-performance analog, mixed-signal, power-management and radio-frequency integrated circuits. Its technologies help convert real-world signals—such as temperature, pressure, sound, motion and light—into data that electronic systems can process and use.

The company offers data converters, amplifiers, power-management products, sensors, embedded processors, connectivity solutions and other semiconductor components.

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