Analog Devices Earns Confident “Buy” from Analysts
Snack-Sized Version:
Analog Devices has earned a “Moderate Buy” rating from 24 analysts, with a bullish tilt—17 gave a “Buy,” only one said “Sell.” The stock’s average 12-month target is a healthy $251.75, indicating broad confidence in the company’s trajectory. Several firms, including Evercore and TD Cowen, raised price targets after strong Q2 performance. The company’s latest earnings beat expectations, reporting $1.85 per share versus the predicted $1.70. On the insider side, notable sales came from CEO Vincent Roche and Director Ray Stata, trimming small portions of their stakes. Despite this, institutional investors like Vanguard and Price T Rowe are boosting positions, now holding over 86% of the company. Analog Devices also recently declared a quarterly dividend, reinforcing stability. With solid fundamentals and analyst backing, ADI appears to be humming in tune.
Read the Full Meal:
Analog Devices continues to impress Wall Street, securing a consensus rating of “Moderate Buy” from 24 analysts. The breakdown reveals solid confidence: 17 say “Buy,” 5 say “Hold,” and only one lonely soul said “Sell.” The stock’s average price target sits comfortably at $251.75, signaling expected upside from its recent $240 range.
Recent research reports contributed to the optimism. Evercore ISI, for example, pushed its price target to $280, while TD Cowen landed at $250. The reasons aren’t just speculative. Analog Devices beat earnings expectations last quarter with an EPS of $1.85 versus the forecasted $1.70. Revenue also impressed, hitting $2.64 billion, up over 22% year-over-year. That’s not just beating the drum—it’s cranking the amps.
Insider selling by CEO Vincent Roche and Director Ray Stata raised a few eyebrows but hardly shook investor faith. Roche’s move represented a 6.54% ownership dip, while Stata’s sell-off cut his stake by 1.71%. Nothing drastic—think portfolio trimming, not rats fleeing a ship.
Institutional investors continue to stack chips. Vanguard now holds nearly 50 million shares, while Price T Rowe upped its game with a 26.7% boost in holdings. Together with other heavyweights like Geode and FMR, institutions now own nearly 87% of the stock. That’s as close to a Wall Street group hug as you get.
The dividend payout is also humming smoothly, with a recent $0.99 per share reinforcing Analog Devices’ appeal to income-focused investors. The payout ratio stands at 107.9%, showing commitment to shareholder returns even in a high-investment climate. Between strong earnings, growing investor interest, and upbeat analyst sentiment, Analog Devices appears to be riding a well-calibrated growth signal into the future.