Significant Rise in Short Interest for Analog Devices, Inc. (NASDAQ:ADI)

Analog Devices, Inc. (NASDAQ:ADI) experienced a notable increase in short interest during January. As of January 15th, the total short interest reached 9,570,000 shares. This marks a substantial rise of 27.4% from the 7,510,000 shares reported on December 31st. With an average daily trading volume of 2,950,000 shares, the current days-to-cover ratio stands at 3.2 days.

Wall Street Analysts Predict Growth

Several market analysts recently provided insights on Analog Devices. Needham & Company LLC maintained a “hold” rating on the shares in a report dated November 27th. On the same day, Morgan Stanley adjusted their target price from $252.00 to $248.00, while also rating the stock as “overweight.” Cantor Fitzgerald reiterated a “neutral” rating and set a $250.00 price target in their report published on October 8th. TD Cowen also lowered their price objective from $270.00 to $260.00, retaining a “buy” rating. Additionally, Truist Financial increased their price target for the stock from $216.00 to $230.00 and rated it as a “hold” on January 10th. Overall, seven analysts recommended a hold position, while fourteen assigned a buy rating. According to MarketBeat.com, the consensus rating for Analog Devices is a "Moderate Buy" with an average price target of $248.70.

Insider Trading Activities

In recent developments, Gregory M. Bryant, the Executive Vice President, sold 20,000 shares of Analog Devices on November 1st at an average price of $223.87, totaling to $4,477,400. Following this transaction, he holds 59,093 shares valued at approximately $13,229,149.91, a decrease of 25.29% in ownership. This sale was disclosed in a filing with the Securities and Exchange Commission. Similarly, CEO Vincent Roche sold 10,000 shares at an average price of $215.83 on December 11th, generating $2,158,300. After this sale, Roche now owns 21,983 shares valued at roughly $4,744,590.89, reflecting a 31.27% reduction in his holdings. Over the past quarter, insiders have disposed of 50,000 shares valued at $11,029,300, with corporate insiders owning 0.31% of the stock.

Institutional Investors in Analog Devices

Institutional investors have also been active regarding their stakes in Analog Devices. Capital Performance Advisors LLP acquired a new position during the third quarter, worth approximately $28,000. Archer Investment Corp has increased its holdings by 101.4% during the same quarter, now owning 145 shares valued at $33,000 after acquiring an additional 73 shares. Financial Life Planners also purchased a new stake in the fourth quarter valued at around $33,000, while Peterson Financial Group Inc. acquired a position valued at $43,000. Reston Wealth Management LLC similarly acquired shares worth $48,000 in the third quarter. Institutional investors and hedge funds collectively hold about 86.81% of the stock.

Stock Performance Metrics

On Thursday, shares of Analog Devices opened at $209.91. The 50-day moving average for the stock is $216.52, while the 200-day moving average is $221.75. Analog Devices has experienced a 12-month low of $182.57 and a high of $244.14. The company’s market capitalization is $104.15 billion, with a current ratio of 1.84, a quick ratio of 1.35, and a debt-to-equity ratio of 0.19. The Price-to-Earnings ratio (P/E) sits at 63.80 with a PEG ratio of 2.57, while the stock has a beta of 1.05.

Dividend Announcement

Recently, Analog Devices declared a quarterly dividend, which was paid out on December 20th. Shareholders on record as of December 9th received a dividend of $0.92 per share, leading to an annualized dividend of $3.68, reflecting a yield of 1.75%. The current dividend payout ratio is reported to be 111.85%.

About the Company

Analog Devices, Inc. specializes in designing, manufacturing, testing, and marketing integrated circuits (ICs), software, and subsystems products globally, from the United States to various regions across North and South America, Europe, Japan, China, and other parts of Asia. Their product offerings include data converters to translate real-world analog signals to digital form and vice versa, power management solutions for energy management, and performance-driven power IC products for various applications including automotive, communications, and industrial sectors.

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