Analog Devices (NASDAQ:ADI) Shares Down 3.5% - What's Next?

On Friday, shares of Analog Devices, Inc. (NASDAQ:ADI) fell by 3.5%, reaching a low of $220.14 before closing at $220.35. The trading session saw 731,727 shares exchanged, which is a significant drop of 75% compared to the average volume of 2,888,056 shares. This decline followed a previous close of $228.35.

Recent Analyst Ratings

Several analysts have recently evaluated Analog Devices. Truist Financial raised their price target from $216.00 to $230.00, maintaining a "hold" rating. On the other hand, Barclays lowered their price target from $250.00 to $210.00 and assigned an "equal weight" rating on January 17th. Similarly, Morgan Stanley reduced their target from $252.00 to $248.00 while keeping an "overweight" rating. New coverage from Wells Fargo & Company gave a price target of $220.00 alongside a neutral outlook. Piper Sandler also updated their target from $235.00 to $220.00, indicating a neutral stance. Currently, seven analysts recommend holding and fourteen suggest buying, giving Analog Devices an average rating of "Moderate Buy" with a target price of $248.70 according to MarketBeat.

Stock Performance Insights

Analog Devices' stock has a 50-day moving average of $216.20 and a 200-day moving average of $222.38. The company maintains a debt-to-equity ratio of 0.19, a quick ratio of 1.35, and a current ratio of 1.84. With a market cap of $107.83 billion, the stock shows a PE ratio of 66.07, a PEG ratio of 2.57, and a beta of 1.05.

In their latest earnings report on November 26th, Analog Devices reported earnings of $1.67 per share for the quarter, which exceeded analysts' expectations of $1.64 by $0.03. The company generated revenue of $2.44 billion, slightly above the consensus estimate of $2.41 billion, although revenue fell 10.1% compared to the same period the previous year. Analysts predict an average EPS of 7.09 for the current fiscal year.

Dividend Announcement

Analog Devices declared a quarterly dividend recently, which was paid on December 20th. Investors recorded as of December 9th received a dividend of $0.92 per share, totaling an annual yield of 1.69%. The ex-dividend date was also December 9th, and the dividend payout ratio stands at 111.85%.

Insider Transactions

CEO Vincent Roche recently sold 10,000 shares of the company on November 1st at an average price of $223.87, amounting to a total of $2,238,700. After this transaction, Roche's ownership in the company dropped by 31.27%, holding now 21,983 shares valued at approximately $4.9 million. EVP Gregory M. Bryant also sold 20,000 shares on the same day, resulting in a total worth of $4,477,400. Insiders have traded a total of 50,000 shares in the past ninety days. Overall, corporate insiders own 0.31% of Analog Devices stock.

Institutional Activity

Recent trends show various institutional investors adjusting their holdings in Analog Devices. Capital Performance Advisors acquired a new stake worth $28,000, while Archer Investment Corp increased their position by 101.4%, now controlling 145 shares valued at $33,000. Other firms such as Peterson Financial Group and Reston Wealth Management also made new acquisitions worth approximately $43,000 and $48,000 respectively. Institutional investors, including hedge funds, now own 86.81% of Analog Devices stock.

About Analog Devices

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits, software, and subsystems globally. The company specializes in data converters that convert real-world analog signals into digital data and vice versa. They also provide power management solutions for various applications across automotive, communications, industrial, and consumer markets.

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