Analog Devices (NASDAQ:ADI) to Repurchase $10.00 billion in Outstanding Shares

Analog Devices (NASDAQ:ADI - Get Free Report) announced that its board has authorized a share buyback program on Tuesday, February 18th, RTT News reports. The company plans to repurchase $10.00 billion in shares. This repurchase authorization permits the semiconductor company to buy up to 9.2% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Analog Devices Trading Down 2.0 %

NASDAQ ADI traded down $4.91 during trading on Friday, hitting $238.91. The company had a trading volume of 6,176,402 shares, compared to its average volume of 3,812,068. The company's fifty day moving average is $215.50 and its 200-day moving average is $220.24. Analog Devices has a one year low of $182.57 and a one year high of $247.10. The company has a current ratio of 1.93, a quick ratio of 1.35 and a debt-to-equity ratio of 0.19. The company has a market cap of $118.52 billion, a price-to-earnings ratio of 76.09, a price-to-earnings-growth ratio of 2.76 and a beta of 1.04.

Analog Devices (NASDAQ:ADI - Get Free Report) last issued its quarterly earnings data on Wednesday, February 19th. The semiconductor company reported $1.63 EPS for the quarter, topping the consensus estimate of $1.54 by $0.09. Analog Devices had a net margin of 16.75% and a return on equity of 8.91%. The business had revenue of $2.42 billion during the quarter, compared to analyst estimates of $2.36 billion. During the same period last year, the business posted $1.73 earnings per share. Analog Devices's quarterly revenue was down 3.6% compared to the same quarter last year. On average, sell-side analysts predict that Analog Devices will post 7.11 earnings per share for the current year.

Analog Devices Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Tuesday, March 4th will be paid a $0.99 dividend. This represents a $3.96 annualized dividend and a yield of 1.66%. This is a boost from Analog Devices's previous quarterly dividend of $0.92. The ex-dividend date of this dividend is Tuesday, March 4th. Analog Devices's dividend payout ratio is presently 126.11%.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Oppenheimer reiterated an "outperform" rating and set a $270.00 price target (up from $245.00) on shares of Analog Devices in a research report on Thursday. Piper Sandler reduced their target price on shares of Analog Devices from $235.00 to $220.00 and set a "neutral" rating on the stock in a report on Wednesday, November 27th. JPMorgan Chase & Co. upped their price target on shares of Analog Devices from $280.00 to $300.00 and gave the company an "overweight" rating in a research report on Thursday. Needham & Company LLC reiterated a "hold" rating on shares of Analog Devices in a report on Thursday. Finally, Barclays lowered their target price on Analog Devices from $250.00 to $210.00 and set an "equal weight" rating for the company in a research note on Friday, January 17th. Seven equities research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $255.19.

Insiders Place Their Bets

In other news, CEO Vincent Roche sold 10,000 shares of Analog Devices stock in a transaction that occurred on Thursday, January 2nd. The shares were sold at an average price of $215.49, for a total transaction of $2,154,900.00. Following the completion of the transaction, the chief executive officer now directly owns 21,983 shares in the company, valued at approximately $4,737,116.67. This trade represents a 31.27 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.33% of the stock is owned by corporate insiders.

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.