Zacks Investment Research Downgrades Analog Devices Inc. (ADI) to Hold
Analog Devices Inc. (NASDAQ:ADI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday.
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.”
Several other analysts also recently issued reports on ADI. JPMorgan Chase & Co. upped their price objective on Analog Devices from $58.00 to $70.00 and gave the company a “neutral” rating in a research report on Wednesday, July 27th. Morgan Stanley reiterated a “buy” rating and issued a $78.00 target price on shares of Analog Devices in a research note on Thursday, August 18th. Wells Fargo & Co. restated a “buy” rating on shares of Analog Devices in a research note on Thursday, August 18th. Pacific Crest restated a “buy” rating on shares of Analog Devices in a research note on Sunday, September 11th. Finally, Stifel Nicolaus raised their price objective on Analog Devices from $78.00 to $80.00 and gave the company a “buy” rating in a research note on Thursday, September 8th. Eleven analysts have rated the stock with a hold rating and nineteen have assigned a buy rating to the company. Analog Devices currently has a consensus rating of “Buy” and an average target price of $70.64.
Analog Devices (NASDAQ:ADI) opened at 64.41 on Thursday. The stock’s 50 day moving average price is $62.90 and its 200-day moving average price is $59.70. Analog Devices has a 12 month low of $47.24 and a 12 month high of $66.91. The stock has a market cap of $19.80 billion, a price-to-earnings ratio of 30.43 and a beta of 1.25.
Analog Devices (NASDAQ:ADI) last released its quarterly earnings results on Wednesday, August 17th. The company reported $0.82 EPS for the quarter, topping the consensus estimate of $0.75 by $0.07. The company had revenue of $870 million for the quarter, compared to analyst estimates of $847.43 million. Analog Devices had a return on equity of 19.40% and a net margin of 19.49%. The firm’s revenue was up 11.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.77 earnings per share. Equities research analysts predict that Analog Devices will post $2.92 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 7th. Stockholders of record on Friday, August 26th were given a $0.42 dividend. The ex-dividend date of this dividend was Wednesday, August 24th. This represents a $1.68 annualized dividend and a dividend yield of 2.60%. Analog Devices’s dividend payout ratio (DPR) is presently 79.62%.
In related news, Director Ray Stata sold 50,000 shares of Analog Devices stock in a transaction on Friday, August 19th. The stock was sold at an average price of $64.06, for a total transaction of $3,203,000.00. Following the completion of the sale, the director now owns 257,631 shares of the company’s stock, valued at $16,503,841.86. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, SVP Rick D. Hess sold 6,000 shares of Analog Devices stock in a transaction on Friday, July 15th. The shares were sold at an average price of $60.03, for a total value of $360,180.00. Following the sale, the senior vice president now directly owns 36,495 shares of the company’s stock, valued at approximately $2,190,794.85. The disclosure for this sale can be found here. 0.90% of the stock is owned by insiders.
A number of hedge funds have recently added to or reduced their stakes in ADI. Canada Pension Plan Investment Board boosted its stake in Analog Devices by 70.6% in the first quarter. Canada Pension Plan Investment Board now owns 95,485 shares of the company’s stock worth $5,652,000 after buying an additional 39,500 shares during the last quarter. Credit Agricole S A boosted its stake in Analog Devices by 0.3% in the first quarter. Credit Agricole S A now owns 86,384 shares of the company’s stock worth $5,115,000 after buying an additional 269 shares during the last quarter. Carnick & Kubik LLC purchased a new stake in Analog Devices during the first quarter worth about $608,000. NN Investment Partners Holdings N.V. purchased a new stake in Analog Devices during the first quarter worth about $105,000. Finally, Columbia Partners L L C Investment Management boosted its stake 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 worth $1,106,000 after buying an additional 1,132 shares during the last quarter. 85.71% of the stock is owned by hedge funds and other 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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