Analog Devices (NASDAQ:ADI) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Analog Devices, Inc. (NASDAQ:ADIGet Rating) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $159.24, but opened at $166.01. Analog Devices shares last traded at $163.63, with a volume of 27,874 shares traded.

The semiconductor company reported $2.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.58 by $0.15. Analog Devices had a return on equity of 11.92% and a net margin of 17.00%. The company had revenue of $3.25 billion for the quarter, compared to analyst estimates of $3.16 billion. During the same quarter last year, the company posted $1.73 EPS. The company’s revenue for the quarter was up 38.8% compared to the same quarter last year.

Analog Devices Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 15th. Investors of record on Monday, December 5th will be issued a dividend of $0.76 per share. This represents a $3.04 annualized dividend and a dividend yield of 1.80%. Analog Devices’s dividend payout ratio (DPR) is 83.98%.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Cowen assumed coverage on Analog Devices in a report on Tuesday, October 11th. They set an “outperform” rating and a $180.00 price objective on the stock. StockNews.com assumed coverage on Analog Devices in a report on Wednesday, October 12th. They set a “hold” rating on the stock. Robert W. Baird reissued an “outperform” rating and set a $220.00 price objective on shares of Analog Devices in a report on Friday, August 19th. Truist Financial raised their price objective on Analog Devices from $203.00 to $209.00 and gave the company a “buy” rating in a report on Thursday, August 18th. Finally, Oppenheimer reissued an “outperform” rating and set a $210.00 price objective on shares of Analog Devices in a report on Friday, November 18th. Eight research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $190.70.

Insider Activity

In other news, Director Tunc Doluca sold 2,400 shares of the business’s stock in a transaction dated Tuesday, October 4th. The stock was sold at an average price of $150.00, for a total value of $360,000.00. Following the transaction, the director now directly owns 69,157 shares of the company’s stock, valued at approximately $10,373,550. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, Director Tunc Doluca sold 2,400 shares of the business’s stock in a transaction dated Tuesday, October 4th. The stock was sold at an average price of $150.00, for a total value of $360,000.00. Following the completion of the sale, the director now directly owns 69,157 shares of the company’s stock, valued at approximately $10,373,550. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Vivek Jain sold 14,000 shares of the business’s stock in a transaction dated Thursday, August 25th. The shares were sold at an average price of $165.63, for a total value of $2,318,820.00. Following the completion of the sale, the senior vice president now directly owns 18,271 shares of the company’s stock, valued at $3,026,225.73. The disclosure for this sale can be found here. Insiders have sold 18,100 shares of company stock valued at $2,950,820 in the last ninety days. 0.47% of the stock is owned by company insiders.

Institutional Trading of Analog Devices

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vontobel Holding Ltd. increased its holdings in Analog Devices by 84.8% during the 2nd quarter. Vontobel Holding Ltd. now owns 25,836 shares of the semiconductor company’s stock worth $3,804,000 after purchasing an additional 11,855 shares in the last quarter. Forum Financial Management LP increased its holdings in Analog Devices by 92.8% during the 1st quarter. Forum Financial Management LP now owns 5,910 shares of the semiconductor company’s stock worth $976,000 after purchasing an additional 2,844 shares in the last quarter. Avantax Advisory Services Inc. increased its holdings in Analog Devices by 30.7% during the 2nd quarter. Avantax Advisory Services Inc. now owns 5,598 shares of the semiconductor company’s stock worth $818,000 after purchasing an additional 1,314 shares in the last quarter. Buckley Wealth Management LLC purchased a new position in shares of Analog Devices in the 1st quarter worth approximately $211,000. Finally, Wetherby Asset Management Inc. boosted its stake in shares of Analog Devices by 7.3% in the 1st quarter. Wetherby Asset Management Inc. now owns 12,056 shares of the semiconductor company’s stock worth $1,991,000 after buying an additional 820 shares during the last quarter. 85.22% of the stock is owned by institutional investors.

Analog Devices Price Performance

The business has a 50 day moving average price of $147.66 and a two-hundred day moving average price of $154.99. The stock has a market cap of $86.63 billion, a PE ratio of 46.53, a P/E/G ratio of 1.40 and a beta of 1.11. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.43 and a current ratio of 1.92.

Analog Devices Company Profile

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Analog Devices, Inc designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. 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 high-end consumer markets; and power ICs include performance, integration, and software design simulation tools for accurate power supply designs.

Further Reading

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