Professional Advisory Services Inc. Reduces Stock Holdings in Analog Devices, Inc. $ADI

Key Points

• Professional Advisory Services Inc. trimmed its stake in Analog Devices (ADI) by 7.1% in Q4, selling 5,189 shares and leaving 67,663 shares valued at $18.35 million, about 2.4% of its portfolio and its 25th largest holding.
• Analog Devices beat expectations with $2.46 EPS vs. $2.31 expected and $3.16B revenue (up 30.4% YoY), set Q2 EPS guidance of $2.73–$3.03, and carries a consensus analyst rating of "Buy" with a $366.96 price target.
• The company raised its quarterly dividend to $1.10 ($4.40 annual, 1.4% yield) while insiders sold roughly 41,449 shares (~$12.3M) over the past three months and institutional ownership stands near 86.8%.

Professional Advisory Services Inc. decreased its position in shares of Analog Devices, Inc. (NASDAQ:ADI - Free Report) by 7.1% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 67,663 shares of the semiconductor company's stock after selling 5,189 shares during the quarter. Analog Devices makes up 2.4% of Professional Advisory Services Inc.'s investment portfolio, making the stock its 25th largest position. Professional Advisory Services Inc.'s holdings in Analog Devices were worth $18,350,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in Analog Devices by 0.3% in the 3rd quarter. Vanguard Group Inc. now owns 50,389,306 shares of the semiconductor company's stock worth $12,380,652,000 after buying an additional 162,075 shares during the period. State Street Corp boosted its stake in Analog Devices by 0.4% in the 3rd quarter. State Street Corp now owns 23,399,046 shares of the semiconductor company's stock worth $5,749,146,000 after purchasing an additional 81,790 shares during the period. Norges Bank purchased a new position in Analog Devices during the 2nd quarter valued at about $1,803,377,000. Ameriprise Financial Inc. increased its position in shares of Analog Devices by 6.3% during the second quarter. Ameriprise Financial Inc. now owns 6,326,772 shares of the semiconductor company's stock valued at $1,506,448,000 after buying an additional 375,207 shares during the period. Finally, Amundi boosted its holdings in Analog Devices by 44.8% in the 3rd quarter. Amundi now owns 6,215,129 shares of the semiconductor company's stock valued at $1,507,740,000 after purchasing an additional 1,922,302 shares during the period. 86.81% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Morgan Stanley reaffirmed an "overweight" rating and issued a $373.00 target price on shares of Analog Devices in a research note on Thursday, February 19th. Zacks Research raised Analog Devices from a "hold" rating to a "strong-buy" rating in a report on Thursday, January 1st. TD Cowen restated a "buy" rating on shares of Analog Devices in a research report on Thursday, February 19th. Robert W. Baird set a $365.00 target price on Analog Devices in a research note on Thursday, February 19th. Finally, Bank of America lifted their price target on shares of Analog Devices from $320.00 to $350.00 and gave the stock a "buy" rating in a research note on Wednesday, January 21st. Three analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Analog Devices presently has an average rating of "Buy" and a consensus price target of $366.96.

Analog Devices Price Performance

Shares of Analog Devices stock opened at $321.83 on Wednesday. The business has a 50 day moving average of $323.09 and a 200 day moving average of $278.63. Analog Devices, Inc. has a 52 week low of $158.65 and a 52 week high of $363.20. The company has a market cap of $157.12 billion, a PE ratio of 58.84, a P/E/G ratio of 1.43 and a beta of 1.00. The company has a quick ratio of 1.35, a current ratio of 1.76 and a debt-to-equity ratio of 0.21.

Analog Devices (NASDAQ:ADI - Get Free Report) last released its quarterly earnings results on Wednesday, February 18th. The semiconductor company reported $2.46 earnings per share for the quarter, beating the consensus estimate of $2.31 by $0.15. The business had revenue of $3.16 billion for the quarter, compared to analysts' expectations of $3.10 billion. Analog Devices had a net margin of 23.02% and a return on equity of 12.49%. The firm's revenue for the quarter was up 30.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.63 earnings per share. Analog Devices has set its Q2 2026 guidance at 2.730-3.030 EPS. As a group, equities research analysts forecast that Analog Devices, Inc. will post 7.14 earnings per share for the current year.

Analog Devices Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd were paid a dividend of $1.10 per share. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Tuesday, March 3rd. This is a positive change from Analog Devices's previous quarterly dividend of $0.99. Analog Devices's payout ratio is presently 80.44%.

Insider Activity at Analog Devices

In related news, SVP Martin Cotter sold 10,000 shares of the stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $278.44, for a total value of $2,784,400.00. Following the completion of the transaction, the senior vice president directly owned 49,664 shares of the company's stock, valued at $13,828,444.16. This represents a 16.76% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Vincent Roche sold 10,000 shares of the firm's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $306.92, for a total transaction of $3,069,200.00. Following the completion of the sale, the chief executive officer owned 155,688 shares of the company's stock, valued at $47,783,760.96. This trade represents a 6.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 41,449 shares of company stock valued at $12,336,069 over the last three months. Corporate insiders own 0.36% of the company's stock.

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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