Short Interest in Analog Devices, Inc. (NASDAQ:ADI) Grows By 27.4%

During December, Analog Devices, Inc. (NASDAQ:ADI) experienced a notable increase in short interest. As of December 31st, the total short interest reached 9,570,000 shares, which marks a significant growth of 27.4% from the previous figure of 7,510,000 shares recorded on December 15th. With an average daily trading volume of 2,950,000 shares, the days-to-cover ratio currently stands at 3.2 days.

Analog Devices Stock Performance

On the last trading day, NASDAQ ADI opened at $215.02. The company has a market capitalization of $106.71 billion, along with a price-to-earnings (PE) ratio of 65.36. Its price-to-earnings-growth ratio is 2.43, and the stock has a beta of 1.05. The 50-day moving average price for Analog Devices is $216.03, while the two-hundred-day moving average price is $222.66. The company maintains a current ratio of 1.84, a quick ratio of 1.35, and a debt-to-equity ratio of 0.19. Over the past year, Analog Devices has had a low of $182.57 and a high of $244.14.

Most recently, on November 26th, Analog Devices announced its earnings results for the previous quarter. The semiconductor firm recorded earnings per share (EPS) of $1.67, surpassing the consensus estimate of $1.64 by $0.03. The quarter's revenue was reported at $2.44 billion, slightly exceeding analysts' expectations of $2.41 billion. Although the return on equity stood at 9.01%, and the net margin was 17.35%, the company's revenue was down 10.1% compared to the same quarter last year when it posted an EPS of $2.01. Analysts are predicting an EPS of 7.09 for the current year.

Dividend Announcement

Additionally, Analog Devices recently declared a quarterly dividend, which was distributed on December 20th. Investors who were on record as of December 9th received a dividend of $0.92 per share. This translates to an annualized dividend of $3.68, with a yield of 1.71%. The ex-dividend date was December 9th, and the company currently has a dividend payout ratio of 111.85%.

Price Target Adjustments by Analysts

In recent weeks, numerous analysts have provided updated ratings for Analog Devices. Needham & Company LLC maintained a "hold" rating on the company's shares on November 27th. Piper Sandler lowered their price target for the stock from $235.00 to $220.00, assigning a "neutral" rating. Morgan Stanley also adjusted their price objective from $252.00 to $248.00, maintaining an "overweight" rating for the stock. Cantor Fitzgerald reaffirmed their "neutral" rating with a target price of $250.00. Lastly, Wells Fargo & Company commenced coverage on Analog Devices on November 22nd, issuing an "equal weight" rating with a target price of $220.00. Presently, seven investment analysts classify the stock as a hold, while fifteen suggest a buy rating, yielding a consensus rating of "Moderate Buy" and an average target price of $249.48, according to MarketBeat.com.

Insider Trading Activity

In related developments, CEO Vincent Roche sold 10,000 shares of the company on November 1st at an average price of $223.87, bringing in a total of $2,238,700.00. Post-sale, Roche directly owns 21,983 shares, valued at approximately $4,921,334.21, indicating a 31.27% decrease in his ownership stake. This transaction is recorded in a legal filing with the SEC. Additionally, EVP Gregory M. Bryant sold 20,000 shares on the same day, also at $223.87 per share, totaling $4,477,400.00. Following this, Bryant holds 59,093 shares valued at $13,229,149.91, a decrease of 25.29% in his position. In total, insiders sold 50,000 shares over the past quarter, valued at $11,029,300, with 0.31% of the stock owned by insiders.

Institutional Investor Activity

Various hedge funds and institutional investors have recently adjusted their holdings in Analog Devices. Federated Hermes Inc. increased their position in the company by 1.6% during the second quarter, now holding 32,016 shares valued at $7,308,000 after acquiring an additional 495 shares. Brown Brothers Harriman & Co. boosted their stake by 100.6% in the same quarter, owning 4,297 shares valued at $981,000 following the purchase of an additional 2,155 shares. Citizens Financial Group Inc. RI also made a sizable addition to their position during the quarter. Overall, institutional investors and hedge funds currently control 86.81% of Analog Devices’ stock.

Company Overview

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems for various applications across the globe including North and South America, Europe, Japan, and China. The company specializes in data converters that transform real-world analog signals into digital data and vice versa. They also focus on power management and reference products meant for power conversion, driver monitoring, sequencing, and energy management in various sectors including automotive, industrial, and consumer markets.

ShortInterest, Growth, Earnings