Short Interest in Analog Devices, Inc. (NASDAQ:ADI) Grows By 27.4%

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

Analog Devices Stock Performance

On Friday, NASDAQ ADI opened trading at $215.02. Analog Devices has a market capitalization of $106.71 billion, a price-to-earnings (PE) ratio of 65.36, and a price-to-earnings-growth (PEG) ratio of 2.43. The stock has a beta of 1.05. Over the last 50 days, the moving average price has been $216.03, and the two-hundred-day moving average price is $222.66. Currently, the company has a current ratio of 1.84, a quick ratio of 1.35, and a debt-to-equity ratio of 0.19, indicating a stable financial position. Over the past year, Analog Devices’ stock reached a low of $182.57 and a high of $244.14.

Analog Devices announced its most recent earnings results on November 26th. The semiconductor company reported earnings per share (EPS) of $1.67 for the quarter, exceeding the consensus expectation of $1.64 by $0.03. The revenue for the quarter was $2.44 billion, surpassing analysts’ predictions of $2.41 billion. The return on equity for Analog Devices was 9.01%, while its net margin stood at 17.35%. However, the revenue showed a decline of 10.1% compared to the previous year. In the same quarter last year, the EPS was $2.01. Analysts forecast an average EPS of 7.09 for the current year.

Dividend Announcement from Analog Devices

Recently, the company declared its quarterly dividend, which was distributed on December 20th. Shareholders who were on record as of December 9th received a dividend of $0.92 per share. This equates to an annualized dividend of $3.68 and yields approximately 1.71%. The ex-dividend date for this payment was also December 9th. Currently, Analog Devices’ dividend payout ratio is 111.85%, indicating it pays out more in dividends than it earns.

Analyst Ratings and Price Targets

In recent days, Analog Devices has been analyzed by various financial experts. Needham & Company LLC maintained a “hold” rating in a report on November 27th. On the same day, Piper Sandler adjusted its price target from $235.00 to $220.00, recommending a “neutral” stance. Morgan Stanley also lowered its price objective for the company from $252.00 to $248.00 and declared an “overweight” rating. Cantor Fitzgerald kept a “neutral” rating and set a target price of $250.00. Wells Fargo & Company began coverage with an “equal weight” rating, establishing a $220.00 target. In total, seven analysts rated the stock as a hold, while fifteen provided a buy rating. According to MarketBeat.com, the average target price is currently $249.48, with an overall consensus rating of “Moderate Buy.”

Insider Sales at Analog Devices

In related news, CEO Vincent Roche sold 10,000 shares on November 1st at an average price of $223.87, amounting to approximately $2.24 million. Following this transaction, he owns about 21,983 shares valued at around $4.92 million, showing a significant decrease in ownership by 31.27%. Executive Vice President Gregory M. Bryant also sold 20,000 shares on the same day for a total of approximately $4.48 million. Post-sale, he holds 59,093 shares valued at $13.23 million, which reflects a decrease of 25.29% in his holdings. Over the last quarter, insiders have sold a total of 50,000 shares for about $11.03 million. Overall, only 0.31% of the shares are held by insiders.

Hedge Fund Activity Surrounding Analog Devices

Recent trading activity shows hedge funds and institutional investors actively buying and selling shares in Analog Devices. Federated Hermes Inc. increased its holdings by 1.6% in the second quarter, now owning 32,016 shares valued at approximately $7.31 million. Brown Brothers Harriman & Co. boosted its stake by 100.6%, acquiring 2,155 additional shares and bringing its total to 4,297 shares valued at $981,000. Citizens Financial Group Inc. RI has also entered a new position worth approximately $402,000 during the second quarter, along with Edgestream Partners L.P. and Sargent Investment Group LLC, who have purchased stakes worth $618,000 and $320,000 respectively. Currently, institutional investors and hedge funds collectively own 86.81% of Analog Devices' stock.

Overview of Analog Devices, Inc.

Analog Devices, Inc. develops and markets integrated circuits (ICs), software, and subsystems globally. The company offers products that convert real-world analog signals into digital data and vice versa, along with power management solutions and integrated circuits for various applications in automotive, industrial, and consumer markets.

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