Bank of New York Mellon Corp Makes New $1.33 Billion Investment in Analog Devices, Inc. $ADI

Key Points

• Bank of New York Mellon acquired 3.34 million Analog Devices shares worth approximately $1.33 billion, giving it a 0.69% stake. Institutional investors collectively own 86.81% of ADI.
• Analog Devices reported a strong quarter, with revenue up 39.2% year over year to $4.02 billion and EPS of $3.45, while issuing better-than-expected fourth-quarter guidance. AI infrastructure and data-center demand are emerging as key growth drivers.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and average target of $447.13, though elevated valuation and recent insider selling—including sales by the CEO and a senior vice president—remain risks.

Bank of New York Mellon Corp acquired a new stake in Analog Devices, Inc. (NASDAQ:ADI - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 3,338,789 shares of the semiconductor company's stock, valued at approximately $1,326,066,000. Bank of New York Mellon Corp owned 0.69% of Analog Devices as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Contravisory Investment Management Inc. acquired a new position in Analog Devices in the 2nd quarter valued at about $25,000. Banque Transatlantique SA acquired a new stake in Analog Devices during the 4th quarter worth approximately $25,000. Evolution Wealth Management Inc. acquired a new stake in Analog Devices during the 1st quarter worth approximately $30,000. Hilton Head Capital Partners LLC purchased a new position in shares of Analog Devices in the 4th quarter valued at approximately $26,000. Finally, Gordian Capital Singapore Pte Ltd purchased a new stake in shares of Analog Devices during the fourth quarter worth approximately $27,000. 86.81% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts recently weighed in on ADI shares. Truist Financial lifted their price objective on shares of Analog Devices from $364.00 to $405.00 and gave the company a "hold" rating in a research report on Wednesday, May 20th. JPMorgan Chase & Co. upped their price objective on shares of Analog Devices from $450.00 to $500.00 and gave the stock an "overweight" rating in a research report on Thursday. Stifel Nicolaus lifted their target price on shares of Analog Devices from $450.00 to $498.00 and gave the company a "buy" rating in a report on Wednesday, June 24th. Robert W. Baird boosted their price target on shares of Analog Devices from $365.00 to $450.00 and gave the stock an "outperform" rating in a research note on Thursday, May 21st. Finally, TD Cowen reissued a "buy" rating and set a $460.00 price target on shares of Analog Devices in a report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $447.13.

Insider Transactions at Analog Devices

In related news, SVP Martin Cotter sold 17,594 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $418.00, for a total value of $7,354,292.00. Following the completion of the transaction, the senior vice president directly owned 56,332 shares of the company's stock, valued at $23,546,776. This trade represents a 23.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Vincent Roche sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $363.00, for a total value of $3,630,000.00. Following the completion of the transaction, the chief executive officer directly owned 137,538 shares of the company's stock, valued at $49,926,294. The trade was a 6.78% 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. In the last 90 days, insiders have sold 75,274 shares of company stock worth $30,343,386. 0.36% of the stock is currently owned by insiders.

Key Headlines Impacting Analog Devices

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

• Positive Sentiment: Strong Q3 beat and upbeat outlook: Fiscal third-quarter revenue reached a record $4.02 billion, up approximately 40% year over year and above the roughly $3.91 billion consensus estimate. Non-GAAP EPS of $3.45 also exceeded expectations. Management guided for fourth-quarter revenue of $4.2 billion-$4.4 billion and EPS of $3.71-$4.01, both ahead of Wall Street forecasts. Analog Devices Reports Record Fiscal Third Quarter 2026 Financial Results
• Positive Sentiment: AI and data-center demand are accelerating: Growth in data-center power-management and optical products, along with industrial demand, is supporting momentum into fiscal 2027. ADI says a potential 100-gigawatt data-center buildout by 2031 could represent a significant long-term opportunity. Analog Devices Sees 100 GW Data Center Buildout
• Positive Sentiment: Analysts raised targets: JPMorgan lifted its target to $500 and maintained an Overweight rating. Needham raised its target to $450, while TD Cowen reaffirmed Buy with a $460 target; Susquehanna also reiterated Buy with a $475 target. These revisions indicate improving confidence in ADI’s AI infrastructure growth. Analog Devices Is Cashing in on the AI Boom
• Positive Sentiment: Shareholder returns remain supportive: ADI declared a quarterly dividend of $1.10 per share, payable September 15 to shareholders of record September 1, and returned approximately $1.7 billion through dividends and repurchases during the quarter.
• Neutral Sentiment: ADI is increasingly being viewed as a dividend-paying way to participate in the AI boom, potentially broadening its appeal to income-oriented investors. 3 Buy-Rated Dividend Stocks to Play the AI Boom
• Negative Sentiment: Valuation and AI-trade concerns are limiting the reaction: One analyst argued that the stock’s elevated valuation and multiple contraction could overshadow the strong fundamentals, warning that investor enthusiasm around AI may be creating additional downside risk. Analog Devices Earnings Reaction Warning

Analog Devices Stock Performance

Shares of ADI opened at $370.24 on Friday. The company has a 50-day simple moving average of $389.14 and a 200-day simple moving average of $371.10. The company has a quick ratio of 1.34, a current ratio of 1.25 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $180.34 billion, a PE ratio of 43.92, a P/E/G ratio of 0.97 and a beta of 1.20. Analog Devices, Inc. has a 52-week low of $223.47 and a 52-week high of $445.91.

Analog Devices (NASDAQ:ADI - Get Free Report) last released its quarterly earnings data on Wednesday, August 19th. The semiconductor company reported $3.45 EPS for the quarter, topping analysts' consensus estimates of $3.34 by $0.11. Analog Devices had a net margin of 29.79% and a return on equity of 16.39%. The firm had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $3.92 billion. During the same quarter in the previous year, the firm earned $2.05 earnings per share. The firm'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. Equities research analysts predict that Analog Devices, Inc. will post 12.42 earnings per share for the current fiscal year.

Analog Devices Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $1.10 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $4.40 annualized dividend and a dividend yield of 1.2%. Analog Devices's payout ratio is 65.38%.

Analog Devices 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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