Analog Devices (NASDAQ:ADI) Hits New 52-Week High After Earnings Beat

Analog Devices, Inc. (NASDAQ:ADI) shares hit a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $247.10 and last traded at $245.78, with a volume of 843178 shares changing hands. The stock had previously closed at $241.66.

The semiconductor company reported $1.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.54 by $0.09. The business had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.36 billion. Analog Devices had a net margin of 17.35% and a return on equity of 9.01%. Analog Devices’s revenue was down 3.6% compared to the same quarter last year. During the same period last year, the business posted $1.73 EPS.

Analog Devices Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 17th. Stockholders of record on Tuesday, March 4th will be paid a $0.99 dividend. The ex-dividend date of this dividend is Tuesday, March 4th. This is a positive change from Analog Devices’s previous quarterly dividend of $0.92. This represents a $3.96 dividend on an annualized basis and a dividend yield of 1.61%. Analog Devices’s payout ratio is presently 111.85%.

Analog Devices announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, February 18th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the semiconductor company to reacquire up to 9.2% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on ADI. TD Cowen cut their price target on Analog Devices from $270.00 to $260.00 and set a “buy” rating for the company in a report on Wednesday, November 27th. Barclays cut their target price on shares of Analog Devices from $250.00 to $210.00 and set an “equal weight” rating for the company in a research note on Friday, January 17th. Truist Financial boosted their price objective on shares of Analog Devices from $216.00 to $230.00 and gave the stock a “hold” rating in a report on Friday, January 10th. Benchmark lifted their target price on Analog Devices from $245.00 to $275.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, UBS Group raised their price objective on Analog Devices from $275.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday. Seven research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. Based on data from MarketBeat, Analog Devices has an average rating of “Moderate Buy” and an average price target of $252.19.

Insider Buying and Selling at Analog Devices

In other news, CEO Vincent Roche sold 10,000 shares of the business’s stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $215.49, for a total transaction of $2,154,900.00. Following the completion of the sale, the chief executive officer now owns 21,983 shares in the company, valued at $4,737,116.67. The trade was a 31.27 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.33% of the company’s stock.

Institutional Trading of Analog Devices

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Orion Capital Management LLC bought a new position in Analog Devices in the fourth quarter valued at approximately $27,000. Capital Performance Advisors LLP acquired a new stake in shares of Analog Devices during the third quarter worth $28,000. Mainstream Capital Management LLC bought a new stake in Analog Devices in the fourth quarter valued at about $30,000. Hopwood Financial Services Inc. acquired a new position in Analog Devices in the fourth quarter valued at about $30,000. Finally, Cassady Schiller Wealth Management LLC boosted its holdings in Analog Devices by 63.2% during the fourth quarter. Cassady Schiller Wealth Management LLC now owns 142 shares of the semiconductor company’s stock worth $30,000 after buying an additional 55 shares during the last quarter. 86.81% of the stock is owned by institutional investors.

Analog Devices Trading Up 1.7 %

The business has a 50 day moving average price of $214.54 and a 200 day moving average price of $219.80. The company has a market capitalization of $121.97 billion, a P/E ratio of 74.53, a PEG ratio of 2.53 and a beta of 1.04. The company has a current ratio of 1.84, a quick ratio of 1.35 and a debt-to-equity ratio of 0.19.

About Analog Devices

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.