Analog Devices (NASDAQ:ADI) Posts Quarterly Earnings Results

Analog Devices (NASDAQ:ADI - Get Free Report) issued its quarterly earnings results on Wednesday. The semiconductor company reported $1.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.54 by $0.09, Zacks reports. Analog Devices had a return on equity of 8.91% and a net margin of 16.75%. The firm had revenue of $2.42 billion during the quarter, compared to analyst estimates of $2.36 billion. During the same quarter in the previous year, the company posted $1.73 earnings per share. The company's revenue was down 3.6% compared to the same quarter last year. Analog Devices updated its Q2 2025 guidance to 1.580-1.780 EPS and its Q2 guidance to $1.58-1.78 EPS.

Analog Devices Stock Performance

ADI traded down $4.91 during mid-day trading on Friday, reaching $238.91. 5,545,154 shares of the company traded hands, compared to its average volume of 3,730,419. The stock has a market capitalization of $118.52 billion, a P/E ratio of 76.09, a P/E/G ratio of 2.76 and a beta of 1.04. The company has a quick ratio of 1.35, a current ratio of 1.93 and a debt-to-equity ratio of 0.19. The company's fifty day moving average price is $215.06 and its 200-day moving average price is $219.97. Analog Devices has a 52-week low of $182.57 and a 52-week high of $247.10.

Analog Devices Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Tuesday, March 4th will be paid a dividend of $0.99 per share. The ex-dividend date is Tuesday, March 4th. This is a positive change from Analog Devices's previous quarterly dividend of $0.92. This represents a $3.96 dividend on an annualized basis and a yield of 1.66%. Analog Devices's payout ratio is currently 126.11%.

Insider Buying and Selling at Analog Devices

In other news, CEO Vincent Roche sold 10,000 shares of the company's stock in a transaction on Wednesday, December 11th. The stock was sold at an average price of $215.83, for a total value of $2,158,300.00. Following the completion of the sale, the chief executive officer now directly owns 21,983 shares in the company, valued at $4,744,590.89. This represents a 31.27 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 0.33% of the company's stock.

Analog Devices announced that its Board of Directors has authorized a share repurchase plan on Tuesday, February 18th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the semiconductor company to purchase up to 9.2% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. JPMorgan Chase & Co. lifted their price objective on Analog Devices from $280.00 to $300.00 and gave the stock an "overweight" rating in a report on Thursday. Wells Fargo & Company lifted their price objective on Analog Devices from $220.00 to $240.00 and gave the stock an "equal weight" rating in a report on Thursday. Barclays decreased their price objective on Analog Devices from $250.00 to $210.00 and set an "equal weight" rating on the stock in a report on Friday, January 17th. Oppenheimer reiterated an "outperform" rating and issued a $270.00 price objective (up previously from $245.00) on shares of Analog Devices in a report on Thursday. Finally, Needham & Company LLC restated a "hold" rating on shares of Analog Devices in a report on Thursday. Seven analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. Based on data from MarketBeat, Analog Devices presently has a consensus rating of "Moderate Buy" and a consensus price target of $255.19.

Analog Devices Company Profile

Analog Devices, Inc designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs.