Analog Devices Inc. (ADI) Lowered to “Hold” at Zacks Investment Research
According to Zacks, “Analog Devices is a leading supplier of analog and DSP integrated circuits. Its third quarter earnings were above the Zacks Consensus Estimate. The company has agreed to acquire Linear business in a cash and stock deal worth $14.8 billion. The acquisition is expected to be accretive to non-GAAP earnings and cash flow. It also acquired the Cyber Security Solutions to enhance its capabilities in the field of secure radio communications. Though we remain concerned about weakness in the consumer market, ADI is solidly positioned in growth markets like industrial, auto and communication. Also its products continue to see very strong deployment in the emerging automotive market.”
Several other equities analysts have also recently weighed in on the company. Stifel Nicolaus raised their price objective on Analog Devices from $78.00 to $80.00 and gave the company a buy rating in a report on Thursday, September 8th. Pacific Crest restated an overweight rating on shares of Analog Devices in a report on Sunday, August 28th. KeyCorp restated a buy rating on shares of Analog Devices in a report on Wednesday, July 6th. Goldman Sachs Group Inc. started coverage on Analog Devices in a report on Thursday, June 2nd. They issued a sell rating and a $50.00 price objective for the company. Finally, Credit Suisse Group AG restated a buy rating on shares of Analog Devices in a report on Tuesday, June 14th. Eleven analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $70.68.
Analog Devices (NASDAQ:ADI) traded down 0.09% during mid-day trading on Tuesday, hitting $63.75. The stock had a trading volume of 631,400 shares. The firm has a market cap of $19.60 billion, a P/E ratio of 30.11 and a beta of 1.21. Analog Devices has a 1-year low of $47.24 and a 1-year high of $66.91. The stock has a 50 day moving average of $62.93 and a 200-day moving average of $59.41.
Analog Devices (NASDAQ:ADI) last released its quarterly earnings results on Wednesday, August 17th. The company reported $0.82 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.75 by $0.07. Analog Devices had a return on equity of 19.40% and a net margin of 19.49%. The firm had revenue of $870 million for the quarter, compared to the consensus estimate of $847.43 million. During the same quarter last year, the business posted $0.77 EPS. The company’s revenue for the quarter was up 11.7% on a year-over-year basis. Analysts predict that Analog Devices will post $2.92 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Wednesday, September 7th. Stockholders of record on Friday, August 26th were given a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 2.63%. The ex-dividend date was Wednesday, August 24th. Analog Devices’s dividend payout ratio is currently 79.62%.
In related news, SVP David Zinsner sold 15,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 18th. The shares were sold at an average price of $64.33, for a total value of $964,950.00. Following the completion of the transaction, the senior vice president now directly owns 35,897 shares of the company’s stock, valued at approximately $2,309,254.01. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Ray Stata sold 50,000 shares of the firm’s stock in a transaction that occurred on Friday, August 19th. The stock was sold at an average price of $64.06, for a total transaction of $3,203,000.00. Following the completion of the transaction, the director now directly owns 257,631 shares of the company’s stock, valued at $16,503,841.86. The disclosure for this sale can be found here. Insiders own 0.90% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ADI. Franklin Resources Inc. increased its position in Analog Devices by 216.9% in the first quarter. Franklin Resources Inc. now owns 8,263,450 shares of the company’s stock valued at $489,113,000 after buying an additional 5,655,478 shares during the period. Capital International Investors increased its position in Analog Devices by 187.5% in the second quarter. Capital International Investors now owns 3,793,500 shares of the company’s stock valued at $214,864,000 after buying an additional 2,473,800 shares during the period. TIAA CREF Investment Management LLC increased its position in Analog Devices by 97.8% in the first quarter. TIAA CREF Investment Management LLC now owns 1,956,180 shares of the company’s stock valued at $115,786,000 after buying an additional 967,417 shares during the period. JPMorgan Chase & Co. increased its position in Analog Devices by 7.3% in the second quarter. JPMorgan Chase & Co. now owns 9,641,077 shares of the company’s stock valued at $546,071,000 after buying an additional 656,762 shares during the period. Finally, Tiverton Asset Management LLC increased its position in Analog Devices by 1,410.4% in the second quarter. Tiverton Asset Management LLC now owns 680,032 shares of the company’s stock valued at $16,300,000 after buying an additional 635,009 shares during the period. 85.71% of the stock is owned by institutional investors.
About Analog Devices
Analog Devices, Inc is engaged in designing, manufacturing and marketing analog, mixed-signal and digital signal processing (DSP) technology, including integrated circuits (ICs), algorithms, software and subsystems. The Company’s operating segments include United States, Rest of North/South America, Europe, Japan, China and Rest of Asia.
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