Richard C. Puccio, Jr. Sells 4,000 Shares of Analog Devices, Inc. (NASDAQ:ADI) Stock

Richard C. Puccio, Jr., the Chief Financial Officer (CFO) of Analog Devices, Inc. (NASDAQ:ADI), recently sold 4,000 shares of the company’s stock on Wednesday, March 19th. The shares were sold at an average price of $209.19, resulting in a total transaction value of $836,760. Following this sale, Puccio now holds 49,916 shares of Analog Devices, with an estimated value of approximately $10,441,928.04. This transaction marks a 7.42% decrease in his overall stake in the company. The details of the sale have been officially recorded in a filing with the U.S. Securities and Exchange Commission (SEC).

Recent Stock Performance

Following the news of the share sale, Analog Devices stock experienced a decline of 1.9%, dropping $4.07 and closing at $205.90. The trading volume on that day reached 2,775,421 shares, which is below the average volume of 3,099,103 shares. Over the past year, the stock has fluctuated, reaching a low of $182.57 and a high of $247.10. The company currently retains a market cap of $102.12 billion, alongside a price-to-earnings (P/E) ratio of 65.57 and a beta of 1.07. As for financial health metrics, Analog Devices has a current ratio of 1.93, a quick ratio of 1.43, and a debt-to-equity ratio of 0.19. Its fifty-day moving average stands at $217.62, while the 200-day moving average is $220.15.

Quarterly Earnings Report

In its latest earnings report issued on February 19th, Analog Devices reported earnings per share (EPS) of $1.63 for the quarter, exceeding analysts' expectations of $1.54 by $0.09. The company achieved a net margin of 16.75% and a return on equity of 8.91%. Revenue for the quarter totaled $2.42 billion, surpassing forecasted figures of $2.36 billion. However, this revenue marks a 3.6% decrease compared to the same quarter from the previous year. Analysts project Analog Devices will post EPS of 7.14 for the current fiscal year.

Dividend Increase and Stock Buyback Program

On March 17th, Analog Devices also paid a newly announced quarterly dividend of $0.99 to shareholders of record as of March 4th. This amount signifies an annualized dividend of $3.96, providing a dividend yield of 1.92%. This marks an increase from the previous dividend of $0.92. The company currently has a payout ratio of 126.11%. Additionally, the board approved a substantial stock buyback program, allowing the company to repurchase shares worth up to $10 billion, which represents about 9.2% of its outstanding stock. Stock buyback programs often indicate that a company's board believes its shares are undervalued.

Institutional Investor Activity

Recent trading activity among institutional investors reveals a cautious but strategic interest in Analog Devices. Vanguard Group Inc., for example, increased its holdings in the company by 0.8% in the fourth quarter, now owning over 49 million shares valued at over $10.4 billion. State Street Corp also raised its position by 0.5%, while Geode Capital Management LLC grew its stake by 2.4% in the same period. Institutional ownership stands at 86.81%, which reflects a robust level of confidence in the company among institutional investors.

Analysts Ratings

Equity research analysts have been closely monitoring Analog Devices, with Oppenheimer reaffirming an "outperform" rating and raising the price target from $245 to $270. Wells Fargo also increased their target to $240 while assigning a rating of "equal weight." In contrast, Barclays and Piper Sandler adjusted their price targets downward. Overall, analyst sentiment remains optimistic, with 18 analysts giving a buy rating and six issuing a hold rating, resulting in a consensus rating of "Moderate Buy" with a target price of $255.41.

About Analog Devices, Inc.

Analog Devices, Inc. specializes in designing, manufacturing, and marketing integrated circuits, software, and systems for various applications. The company is a key player in the fields of data conversion and power management, serving diverse sectors including automotive, communications, industrial, and consumer markets.

stock, CFO, sale, earnings, dividend