Analog Devices Inc. (ADI) Lifted to Buy at Zacks Investment Research
Analog Devices Inc. (NASDAQ:ADI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday. The brokerage presently has a $72.00 price target on the stock. Zacks Investment Research’s price target suggests a potential upside of 12.08% from the stock’s current price.
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.”
Other analysts have also recently issued research reports about the company. Pacific Crest reissued a “buy” rating on shares of Analog Devices in a report on Sunday, September 11th. Stifel Nicolaus increased their price objective on Analog Devices from $78.00 to $80.00 and gave the stock a “buy” rating in a report on Thursday, September 8th. B. Riley reissued a “buy” rating and set a $74.00 price objective on shares of Analog Devices in a report on Saturday, August 20th. Argus reissued a “buy” rating and set a $73.00 price objective on shares of Analog Devices in a report on Thursday, August 18th. Finally, Morgan Stanley reissued a “buy” rating and set a $78.00 price objective on shares of Analog Devices in a report on Thursday, August 18th. Ten analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. Analog Devices has a consensus rating of “Buy” and a consensus price target of $70.64.
Shares of Analog Devices (NASDAQ:ADI) opened at 64.24 on Wednesday. The firm has a market cap of $19.75 billion, a P/E ratio of 30.34 and a beta of 1.25. Analog Devices has a 12-month low of $47.24 and a 12-month high of $66.91. The stock has a 50 day moving average price of $62.91 and a 200 day moving average price of $59.66.
Analog Devices (NASDAQ:ADI) last posted its quarterly earnings data on Wednesday, August 17th. The company reported $0.82 earnings per share for the quarter, topping 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 business had revenue of $870 million for the quarter, compared to analysts’ expectations of $847.43 million. During the same quarter in the previous year, the firm earned $0.77 earnings per share. The business’s revenue was up 11.7% on a year-over-year basis. On average, equities analysts expect that Analog Devices will post $2.92 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 7th. Shareholders of record on Friday, August 26th were issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 2.62%. The ex-dividend date was Wednesday, August 24th. Analog Devices’s payout ratio is 79.62%.
In related news, SVP Martin Cotter sold 10,000 shares of Analog Devices stock in a transaction on Tuesday, September 27th. The stock was sold at an average price of $62.91, for a total value of $629,100.00. Following the completion of the sale, the senior vice president now owns 10,064 shares of the company’s stock, valued at $633,126.24. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Peter Real sold 6,500 shares of Analog Devices stock in a transaction on Thursday, September 29th. The stock was sold at an average price of $64.14, for a total value of $416,910.00. Following the completion of the sale, the senior vice president now directly owns 13,786 shares of the company’s stock, valued at approximately $884,234.04. The disclosure for this sale can be found here. 0.90% of the stock is owned by company insiders.
Several hedge funds have recently modified their holdings of ADI. Carnick & Kubik LLC bought a new position in Analog Devices during the first quarter valued at $608,000. NN Investment Partners Holdings N.V. bought a new position in Analog Devices during the first quarter valued at $105,000. JPMorgan Chase & Co. increased its position in Analog Devices by 2.3% in the first quarter. JPMorgan Chase & Co. now owns 8,984,315 shares of the company’s stock valued at $531,782,000 after buying an additional 197,978 shares during the period. Columbia Partners L L C Investment Management increased its position in Analog Devices by 6.4% in the first quarter. Columbia Partners L L C Investment Management now owns 18,688 shares of the company’s stock valued at $1,106,000 after buying an additional 1,132 shares during the period. Finally, Peapack Gladstone Financial Corp bought a new position in Analog Devices during the first quarter valued at $214,000. 85.71% of the stock is owned by institutional investors.
Analog Devices Company Profile
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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