Analog Devices, Inc. (NASDAQ:ADI) Stock Now Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Wall Street rates Analog Devices a “Moderate Buy”: Of 33 covering brokerages, 29 recommend buying, three rate it a hold and one assigns a strong buy. The average 12-month price target is $460.09, with some firms recently raising targets.
• Recent results exceeded expectations: Analog Devices reported quarterly EPS of $3.45 versus the $3.34 consensus estimate, while revenue rose 39.2% year over year to $4.02 billion.
• Institutional ownership remains high, while insiders have sold shares: Hedge funds and other institutions own 86.81% of the stock, whereas insiders sold 50,936 shares worth about $19.4 million over the past 90 days. The company also pays a $1.10 quarterly dividend, equating to a 1.1% yield.

Shares of Analog Devices, Inc. (NASDAQ:ADI - Get Free Report) have been given an average recommendation of "Moderate Buy" by the thirty-three brokerages that are currently covering the stock, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold recommendation, twenty-nine have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $460.09.

Several research firms recently weighed in on ADI. Robert W. Baird lifted their price target on Analog Devices from $450.00 to $675.00 and gave the stock an "outperform" rating in a report on Monday, August 24th. Wells Fargo & Company reduced their price target on shares of Analog Devices from $515.00 to $500.00 and set an "overweight" rating on the stock in a research report on Thursday, August 20th. Evercore decreased their target price on Analog Devices from $474.00 to $462.00 and set an "outperform" rating on the stock in a research report on Thursday, August 20th. Needham & Company LLC upped their price target on shares of Analog Devices from $440.00 to $450.00 and gave the stock a "buy" rating in a report on Thursday, August 20th. Finally, Weiss Ratings raised Analog Devices from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, August 21st.

Insider Activity

In other Analog Devices news, CFO Richard C. Puccio, Jr. sold 2,683 shares of the business's stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $374.56, for a total transaction of $1,004,944.48. Following the completion of the sale, the chief financial officer owned 54,177 shares in the company, valued at approximately $20,292,537.12. The trade was a 4.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vivek Jain sold 3,305 shares of the stock in a transaction that occurred on Thursday, October 8th. The stock was sold at an average price of $406.58, for a total value of $1,343,746.90. Following the completion of the sale, the insider directly owned 40,428 shares of the company's stock, valued at approximately $16,437,216.24. This trade represents a 7.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 50,936 shares of company stock valued at $19,430,764 in the last ninety days. 0.36% of the stock is owned by company insiders.

Hedge Funds Weigh In On Analog Devices

A number of hedge funds and other institutional investors have recently made changes to their positions in ADI. Riverbend Wealth Management LLC lifted its position in Analog Devices by 2.2% in the first quarter. Riverbend Wealth Management LLC now owns 1,245 shares of the semiconductor company's stock worth $396,000 after purchasing an additional 27 shares during the period. Bridgewater Advisors Inc. boosted its stake in Analog Devices by 1.5% during the first quarter. Bridgewater Advisors Inc. now owns 1,805 shares of the semiconductor company's stock worth $574,000 after buying an additional 27 shares in the last quarter. Silicon Valley Capital Partners increased its holdings in Analog Devices by 4.2% in the 1st quarter. Silicon Valley Capital Partners now owns 672 shares of the semiconductor company's stock valued at $214,000 after buying an additional 27 shares during the period. Cornerstone Financial Management LLC increased its holdings in Analog Devices by 54.9% in the 2nd quarter. Cornerstone Financial Management LLC now owns 79 shares of the semiconductor company's stock valued at $31,000 after buying an additional 28 shares during the period. Finally, Strategy Asset Managers LLC increased its holdings in Analog Devices by 2.1% in the 3rd quarter. Strategy Asset Managers LLC now owns 1,439 shares of the semiconductor company's stock valued at $571,000 after buying an additional 29 shares during the period. 86.81% of the stock is owned by hedge funds and other institutional investors.

Analog Devices Stock Down 0.3%

Shares of ADI stock opened at $394.35 on Tuesday. The firm has a fifty day moving average of $382.96 and a 200-day moving average of $387.64. The company has a market capitalization of $191.09 billion, a price-to-earnings ratio of 46.78, a P/E/G ratio of 1.22 and a beta of 1.22. 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 has a 12-month low of $223.47 and a 12-month high of $445.91.

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, topping the consensus estimate of $3.34 by $0.11. Analog Devices had a net margin of 29.79% and a return on equity of 16.39%. The company had revenue of $4.02 billion during the quarter, compared to analysts' expectations of $3.92 billion. During the same period last year, the business earned $2.05 EPS. The business's quarterly 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. As a group, equities research analysts predict that Analog Devices will post 12.99 earnings per share for the current fiscal year.

Analog Devices Announces Dividend

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

About Analog Devices

Analog Devices, Inc NASDAQ: ADI is a global semiconductor company that designs and manufactures analog, mixed-signal and digital signal-processing technologies. Its products convert, condition and process real-world signals such as temperature, pressure, sound, motion, light and electrical power, helping electronic systems interpret and respond to physical environments.

The company offers a broad portfolio of integrated circuits, power-management products, amplifiers, data converters, sensors, radio-frequency and microwave components, connectivity solutions and embedded processors.

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