Brokerages Set Target Price for Analog Devices, Inc.

Analog Devices, Inc. (NASDAQ:ADI) has garnered an average rating of "Moderate Buy" from the 22 investment firms currently analyzing the company, as reported by Marketbeat.com. Out of these analysts, seven have recommended holding the stock, while fifteen have issued a buy rating. The consensus 12-month target price for ADI shares is approximately $249.48.

Several research companies have recently provided updates on ADI. Needham & Company LLC restated a "hold" rating on Analog Devices' shares in a report on November 27th. Cantor Fitzgerald also reiterated a "neutral" rating, assigning a price target of $250.00 in a report dated October 8th. Morgan Stanley adjusted its price target for Analog Devices, reducing it from $252.00 to $248.00, while maintaining an "overweight" rating as of November 27th. In the same vein, Piper Sandler lowered its price objective from $235.00 to $220.00, indicating a "neutral" stance for the company. Lastly, TD Cowen decreased its target price from $270.00 to $260.00, continuing to advocate a "buy" rating for the stock.

Insider Transactions

In related news, CEO Vincent Roche sold 10,000 shares of Analog Devices stock on January 2nd for an average price of $215.49, totaling nearly $2.15 million. After this transaction, Roche owns 21,983 shares valued at approximately $4.74 million, reflecting a 31.27% reduction in his holdings. Additionally, EVP Gregory M. Bryant sold 20,000 shares on November 1st at an average price of $223.87, accumulating about $4.48 million in the process. Post-sale, Bryant's ownership stands at 59,093 shares worth around $13.23 million, which is a 25.29% decline from his previous position. Over the last three months, a total of 50,000 shares have been sold by insiders, equating to about $11.03 million. Insiders currently possess 0.31% of Analog Devices' total shares.

Hedge Fund Activity

Recent movements from hedge funds regarding Analog Devices reflect growing interest in the company. For instance, Raymond James & Associates increased its stake by 153.6% in the third quarter, acquiring an additional 1,422,054 shares, raising its total ownership to 2,348,104 shares, valued at $540.46 million. Concurrently, Franklin Resources Inc. raised its holdings by 14.9%, now owning 9,176,877 shares worth $2.17 billion. International Assets Investment Management LLC made significant strides as well, boosting its position by over 23,792% and accumulating 887,603 shares valued at approximately $2.04 billion. Healthcare of Ontario Pension Plan Trust Fund also showed a substantial increase, growing its stake by 807.5% during the same period to possess 959,686 shares worth $220.89 million. Furthermore, Holocene Advisors LP raised its position by 336.4%, now holding 1,068,572 shares valued at $245.95 million. Overall, institutional investors and hedge funds collectively own about 86.81% of the company’s stock.

Stock Performance Overview

As of Wednesday, shares of ADI opened at $212.37. The stock boasts a market capitalization of $105.40 billion, a PE ratio of 64.55, and a price-to-earnings-growth ratio of 2.47, along with a beta of 1.05. Over the past year, Analog Devices' shares have fluctuated, hitting a low of $182.57 and a high of $244.14. The stock has shown a 50-day simple moving average of $216.48 and a 200-day average of $222.97. The company also maintains a quick ratio of 1.35, a current ratio of 1.84, and a debt-to-equity ratio of 0.19.

Analog Devices recently announced its earnings for the quarter, revealing an EPS of $1.67, surpassing the expected $1.64. The company reported total revenues of $2.44 billion, exceeding analyst predictions of $2.41 billion. Although the net margin stands at 17.35% with a return on equity of 9.01%, revenue showed a 10.1% decline compared to the same quarter last year, when the company posted an EPS of $2.01. Analysts anticipate the company will report an average EPS of 7.15 for the current fiscal year.

Dividend Information

Additionally, Analog Devices recently announced a quarterly dividend, which was distributed to investors on December 20th. Shareholders on record as of December 9th received a dividend of $0.92 for each share, which translates to an annualized payment of $3.68 and a yield of 1.73%. The ex-dividend date was also December 9th. Presently, the dividend payout ratio is about 111.85%.

About Analog Devices

Analog Devices, Inc. designs, manufactures, and markets integrated circuits and related products in various global regions, including North and South America, Europe, Japan, China, and the rest of Asia. The company specializes in data conversion products that translate real-world analog signals into digital data and vice versa. They also provide power management products for automotive, communications, industrial, and consumer applications.

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