Zacks Research Lifts Earnings Estimates for Analog Devices

Key Points

• Zacks Research has increased its FY2025 earnings per share (EPS) estimate for Analog Devices to $7.69, up from a previous estimate of $7.26, and currently has a "Strong-Buy" rating on the stock.
• Several firms have raised their price targets for Analog Devices, with Citigroup setting a new target at $290.00 and Evercore ISI at $303.00, highlighting strong analyst confidence in the company's growth.
• Analog Devices recently declared a quarterly dividend of $0.99 per share, representing an annualized yield of 1.6%, despite a payout ratio of over 100%.

Analog Devices, Inc. (NASDAQ:ADI - Free Report) - Research analysts at Zacks Research increased their FY2025 EPS estimates for shares of Analog Devices in a research note issued on Tuesday, September 9th. Zacks Research analyst Team now expects that the semiconductor company will post earnings per share of $7.69 for the year, up from their previous forecast of $7.26. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Analog Devices' current full-year earnings is $7.14 per share. Zacks Research also issued estimates for Analog Devices' Q4 2025 earnings at $2.16 EPS, Q1 2026 earnings at $2.00 EPS, Q2 2026 earnings at $2.20 EPS, Q3 2026 earnings at $2.26 EPS, Q4 2026 earnings at $2.46 EPS, FY2026 earnings at $8.93 EPS, Q1 2027 earnings at $2.35 EPS, Q2 2027 earnings at $2.53 EPS, Q3 2027 earnings at $2.73 EPS and FY2027 earnings at $10.40 EPS.

Several other research firms also recently issued reports on ADI. TD Cowen lifted their price target on shares of Analog Devices from $200.00 to $250.00 and gave the company a "buy" rating in a research report on Friday, May 23rd. Stifel Nicolaus lifted their price target on shares of Analog Devices from $248.00 to $270.00 and gave the company a "buy" rating in a research report on Friday, July 18th. Piper Sandler lifted their price target on shares of Analog Devices from $215.00 to $245.00 and gave the company a "neutral" rating in a research report on Thursday, August 21st. Citigroup reissued a "buy" rating and issued a $290.00 price target (up previously from $260.00) on shares of Analog Devices in a research report on Monday, July 7th. Finally, Evercore ISI lifted their price target on shares of Analog Devices from $280.00 to $303.00 and gave the company an "outperform" rating in a research report on Thursday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $273.53.

Analog Devices Stock Performance

Shares of ADI stock opened at $247.21 on Thursday. The firm has a 50 day moving average of $238.95 and a 200-day moving average of $220.34. Analog Devices has a 52 week low of $158.65 and a 52 week high of $258.13. The company has a quick ratio of 1.79, a current ratio of 2.32 and a debt-to-equity ratio of 0.24. The company has a market cap of $121.61 billion, a price-to-earnings ratio of 63.06, a price-to-earnings-growth ratio of 2.11 and a beta of 1.08.

Analog Devices (NASDAQ:ADI - Get Free Report) last announced its quarterly earnings data on Wednesday, August 20th. The semiconductor company reported $2.05 EPS for the quarter, topping the consensus estimate of $1.95 by $0.10. The company had revenue of $2.88 billion during the quarter, compared to the consensus estimate of $2.76 billion. Analog Devices had a net margin of 18.85% and a return on equity of 10.32%. The company's quarterly revenue was up 24.6% on a year-over-year basis. During the same quarter last year, the firm posted $1.58 EPS. Analog Devices has set its Q4 2025 guidance at 2.120-2.320 EPS.

Analog Devices Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be issued a $0.99 dividend. This represents a $3.96 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Tuesday, September 2nd. Analog Devices's payout ratio is 101.02%.

Insider Activity at Analog Devices

In related news, SVP Katsufumi Nakamura sold 2,490 shares of the business's stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $248.03, for a total value of $617,594.70. Following the transaction, the senior vice president directly owned 13,549 shares of the company's stock, valued at approximately $3,360,558.47. The trade was a 15.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Ray Stata sold 3,125 shares of the company's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $239.23, for a total transaction of $747,593.75. Following the sale, the director directly owned 167,571 shares in the company, valued at approximately $40,088,010.33. This trade represents a 1.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 38,115 shares of company stock valued at $9,529,113 over the last quarter. Corporate insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Analog Devices

Several hedge funds and other institutional investors have recently modified their holdings of ADI. Howard Hughes Medical Institute bought a new stake in shares of Analog Devices during the second quarter valued at about $25,000. Activest Wealth Management raised its stake in Analog Devices by 6,350.0% in the first quarter. Activest Wealth Management now owns 129 shares of the semiconductor company's stock valued at $26,000 after purchasing an additional 127 shares in the last quarter. RMG Wealth Management LLC purchased a new stake in Analog Devices in the second quarter valued at approximately $26,000. Orion Capital Management LLC purchased a new stake in Analog Devices in the fourth quarter valued at approximately $27,000. Finally, Menard Financial Group LLC purchased a new stake in Analog Devices in the fourth quarter valued at approximately $27,000. 86.81% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.