Analog Devices (NASDAQ:ADI) Sees Decline After Insider Sale

Analog Devices, Inc. (NASDAQ:ADI) experienced a 1.6% decrease in its stock price during trading on Friday following an insider's sale of shares. The stock reached a low of $213.75 before closing at $214.27. In total, 333,208 shares traded hands during the mid-day session, marking a significant drop of 90% from the average volume of 3,213,546 shares. Prior to the trading day, the stock had closed at $217.72.

The insider in question is CEO Vincent Roche, who sold 10,000 shares of the company's stock on Wednesday, December 11th. This transaction took place at an average price of $215.83, resulting in a total sale amount of $2,158,300.00. Following this sale, Roche's direct holdings in Analog Devices decreased to 21,983 shares, which are valued at $4,744,590.89. Such a sell-off represents a 31.27% reduction in his stake. The details of this transaction were disclosed in a filing with the SEC.

Brokerage Updates on Price Targets

In the wake of these developments, several brokerage firms have issued new ratings and price targets for Analog Devices. Needham & Company LLC reiterated a “hold” rating for the stock in a report released on November 27th. On the same day, Truist Financial revised their price target for Analog Devices from $233.00 down to $227.00, maintaining a “hold” rating. Wells Fargo & Company started coverage of Analog Devices with an “equal weight” rating and a price target of $220.00, which was communicated in a report on November 22nd. Additionally, Bank of America adjusted their target price from $260.00 to $255.00 while rating the stock as a “buy” on August 22nd. Lastly, TD Cowen reduced their price target from $270.00 to $260.00 on the same date as the previous revisions. Currently, the stock enjoys a consensus rating of “Moderate Buy” from research analysts, with an average target price of $249.33.

Stock Performance Insights

Looking at the technical side, Analog Devices holds a 50-day moving average price of $222.40 and a 200-day moving average price of $225.64. The company maintains a debt-to-equity ratio of 0.19, a quick ratio of 1.35, and a current ratio of 1.84. As of now, the market capitalization of Analog Devices stands at $107.50 billion, with a P/E ratio of 65.84 and a price-to-earnings-growth ratio of 2.47, alongside a beta of 1.05.

Recently, Analog Devices released its earnings report on November 26th. The semiconductor company reported earnings of $1.67 per share for the quarter, outperforming analyst expectations that averaged $1.64 by $0.03. The overall revenue for the quarter was $2.44 billion, slightly beating estimates of $2.41 billion. The firm's net margin was reported at 17.35% with a return on equity of 9.01%. However, it is noteworthy that the company's quarterly revenue saw a decline of 10.1% from the same quarter last year, where the earnings were $2.01 per share. Looking ahead, analysts are projecting that Analog Devices will deliver an earnings per share of 7.15 for the current fiscal year.

Dividend Announcement

In addition to its financial performance updates, Analog Devices has declared a quarterly dividend of $0.92 per share. This dividend will be paid on December 20th to investors on record by December 9th, with that same day set as the ex-dividend date. This translates to an annualized dividend of $3.68, reflecting a yield of 1.70%. The company's dividend payout ratio currently stands at 111.85%.

Institutional Ownership Trends

Recent trends show that several institutional investors and hedge funds have made changes to their holdings in Analog Devices. Raymond James & Associates reported a 153.6% increase in their position by acquiring 1,422,054 additional shares during the third quarter, bringing their total to 2,348,104 shares valued at approximately $540.46 million. Franklin Resources Inc. also expanded their stake by 14.9% during the same period, now owning 9,176,877 shares valued at $2.17 billion. Moreover, International Assets Investment Management LLC's position surged by 23,792.4% in the third quarter, with an acquisition of an additional 883,888 shares. Healthcare of Ontario Pension Plan Trust Fund showed a remarkable increase of 807.5%, rounding up to 959,686 shares worth about $220.89 million. Additionally, Holocene Advisors LP's stake rose by 336.4% to 1,068,572 shares valued around $245.95 million. It is significant to note that institutional investors and hedge funds collectively 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. Their operations span across the United States and extend to various regions in Europe, Japan, China, and beyond. The company specializes in data converter products that transform analog signals into digital data and vice versa. They also offer a range of power management products relevant to sectors like automotive, communications, industrial, and consumer markets, providing solutions for power conversion, driver monitoring, and energy management.

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