Analog Devices (NASDAQ:ADI) Shares Gap Up After Earnings Beat

Shares of Analog Devices, Inc. (NASDAQ:ADI) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $230.44, but opened at $239.69. Analog Devices shares last traded at $234.75, with a volume of 1,608,490 shares traded.

The semiconductor company reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.95 by $0.10. The business had revenue of $2.88 billion for the quarter, compared to the consensus estimate of $2.76 billion. Analog Devices had a return on equity of 9.56% and a net margin of 18.65%.The business’s revenue was up 24.6% on a year-over-year basis. During the same quarter last year, the business posted $1.58 EPS. Analog Devices has set its Q4 2025 guidance at 2.120-2.320 EPS.

Analog Devices Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be issued a $0.99 dividend. This represents a $3.96 annualized dividend and a dividend yield of 1.6%. Analog Devices’s dividend payout ratio (DPR) is 107.90%.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Wells Fargo & Company set a $235.00 price target on Analog Devices and gave the stock an “equal weight” rating in a report on Monday, June 16th. Raymond James Financial raised Analog Devices from a “moderate buy” rating to a “strong-buy” rating in a research note on Wednesday, June 18th. KeyCorp lifted their target price on Analog Devices from $285.00 to $300.00 and gave the company an “overweight” rating in a research note on Tuesday, July 8th. Cfra Research downgraded Analog Devices from a “strong-buy” rating to a “moderate buy” rating in a research note on Thursday, May 22nd. Finally, UBS Group cut their target price on Analog Devices from $285.00 to $280.00 and set a “buy” rating on the stock in a research note on Monday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $258.89.

Insider Activity

In other news, Director Ray Stata sold 3,125 shares of Analog Devices stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $239.23, for a total transaction of $747,593.75. Following the transaction, the director directly owned 167,571 shares in the company, valued at approximately $40,088,010.33. This trade represents a 1.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Analog Devices

Institutional investors have recently bought and sold shares of the stock. China Universal Asset Management Co. Ltd. increased its stake in Analog Devices by 284.4% in the 1st quarter. China Universal Asset Management Co. Ltd. now owns 31,050 shares of the semiconductor company’s stock worth $6,262,000 after purchasing an additional 22,973 shares in the last quarter. Freestone Grove Partners LP acquired a new stake in Analog Devices during the fourth quarter valued at $10,212,000. Sowell Financial Services LLC acquired a new stake in shares of Analog Devices in the first quarter worth about $296,000. Keybank National Association OH lifted its position in shares of Analog Devices by 85.8% in the first quarter. Keybank National Association OH now owns 27,077 shares of the semiconductor company’s stock worth $5,461,000 after buying an additional 12,505 shares during the last quarter. Finally, Eastern Bank increased its stake in shares of Analog Devices by 6.0% in the first quarter. Eastern Bank now owns 196,677 shares of the semiconductor company’s stock worth $39,664,000 after purchasing an additional 11,101 shares during the period. Hedge funds and other institutional investors own 86.81% of the company’s stock.

Analog Devices Stock Up 6.3%

The company has a debt-to-equity ratio of 0.19, a current ratio of 2.08 and a quick ratio of 1.51. The firm has a market capitalization of $121.52 billion, a P/E ratio of 66.72, a price-to-earnings-growth ratio of 2.12 and a beta of 1.05. The business has a 50 day moving average price of $233.96 and a 200 day moving average price of $216.74.

Analog Devices Company Profile

Analog Devices, Inc designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. 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 consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs.