Analog Devices Earns Confident “Buy” from Analysts

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.

Author

Raul Pellerano

Raul is the Founder & CEO of Investing Snacks and loves contributing to the platform. He consumes lots of financial content daily, and is therefore always up to date on the latest financial news. Raul has been writing for over a decade and is now a daily contributor to the site.