Analog Devices, Inc. (NASDAQ:ADI) Sees Large Decrease in Short Interest

Analog Devices, Inc. (NASDAQ:ADI) was the target of a significant decrease in short interest in February. As of February 15th, there was short interest totalling 7,030,000 shares, a decrease of 13.8% from the January 31st total of 8,160,000 shares. Based on an average daily trading volume, of 3,530,000 shares, the days-to-cover ratio is presently 2.0 days.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Piper Sandler reduced their target price on Analog Devices from $235.00 to $220.00 and set a “neutral” rating on the stock in a report on Wednesday, November 27th. Maxim Group assumed coverage on Analog Devices in a research note on Friday, February 14th. They issued a “buy” rating on the stock. Lake Street Capital initiated coverage on Analog Devices in a research note on Friday, February 14th. They set a “buy” rating for the company. Truist Financial raised their price target on shares of Analog Devices from $230.00 to $248.00 and gave the company a “hold” rating in a research note on Thursday, February 20th. Finally, TD Cowen lowered their price objective on shares of Analog Devices from $270.00 to $260.00 and set a “buy” rating for the company in a research report on Wednesday, November 27th. Six investment analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. According to data from MarketBeat.com, Analog Devices has an average rating of “Moderate Buy” and an average price target of $255.41.

Analog Devices Stock Down 1.0 %

Analog Devices stock opened at $226.18 on Wednesday. The firm has a market cap of $112.18 billion, a price-to-earnings ratio of 72.03, a PEG ratio of 2.85 and a beta of 1.04. Analog Devices has a 52-week low of $182.57 and a 52-week high of $247.10. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.43 and a current ratio of 1.93. The firm has a 50 day moving average price of $217.98 and a two-hundred day moving average price of $221.16.

Analog Devices (NASDAQ:ADI) last announced its earnings results on Wednesday, February 19th. The semiconductor company reported $1.63 earnings per share for the quarter, topping analysts’ consensus estimates of $1.54 by $0.09. The business had revenue of $2.42 billion during the quarter, compared to the consensus estimate of $2.36 billion. Analog Devices had a net margin of 16.75% and a return on equity of 8.91%. Analog Devices’s quarterly revenue was down 3.6% on a year-over-year basis. During the same quarter last year, the firm earned $1.73 earnings per share. Equities analysts predict that Analog Devices will post 7.14 EPS for the current year.

Analog Devices Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Tuesday, March 4th will be issued a $0.99 dividend. This is an increase from Analog Devices’s previous quarterly dividend of $0.92. This represents a $3.96 dividend on an annualized basis and a yield of 1.75%. The ex-dividend date is Tuesday, March 4th. Analog Devices’s payout ratio is presently 126.11%.

Analog Devices declared that its board has initiated a share repurchase program on Tuesday, February 18th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the semiconductor company to repurchase up to 9.2% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other news, CEO Vincent Roche sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, January 2nd. The shares were 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 of the company’s stock, valued at approximately $4,737,116.67. This represents a 31.27 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.33% of the stock is currently owned by company insiders.

Institutional Trading of Analog Devices

Several large investors have recently modified their holdings of ADI. Orion Capital Management LLC bought a new stake in Analog Devices in the 4th quarter valued at about $27,000. Menard Financial Group LLC acquired a new stake in Analog Devices in the fourth quarter valued at approximately $27,000. Capital Performance Advisors LLP acquired a new stake in Analog Devices in the third quarter valued at approximately $28,000. Mainstream Capital Management LLC bought a new stake in shares of Analog Devices during the fourth quarter valued at approximately $30,000. Finally, Hopwood Financial Services Inc. acquired a new position in shares of Analog Devices during the fourth quarter worth approximately $30,000. Institutional investors and hedge funds own 86.81% of the company’s stock.

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.