Analog Devices Stock Reaches New Record, Analysts Forecast Further Growth

Summary

• Analog Devices reached a record peak of $363.29, gaining more than 105% over the last year.
• First-quarter earnings per share reached $2.46, surpassing the $2.31 forecast, with revenue growing 30.4% year-over-year.
• The quarterly dividend was increased to $1.10 from $0.99, marking the 23rd consecutive year of growth.
• Price targets from analysts range between $360 and $430, with a mean consensus of $370.69.
• Institutional investors hold 86.8% of the company, with Mirae Asset expanding its position by 23.3%.

(SeaPRwire) –   On Thursday, Analog Devices reached a new record high of $363.29, concluding a period where the stock price more than doubled in value over the previous 12 months.

Analog Devices, Inc., ADI

The semiconductor company began Friday’s trading session at $353.80, with a total market capitalization of approximately $172.7 billion. Its 52-week low of $171.00 indicates that the current price is more than double its annual minimum.

This upward momentum follows a robust Q1 earnings report released in February. ADI reported earnings per share of $2.46, exceeding the $2.31 analyst consensus by $0.15.

Quarterly revenue reached $3.16 billion, outperforming the $3.10 billion projection and reflecting a 30.4% increase over the previous year’s figures.

Looking ahead to the second quarter, the firm projected EPS between $2.73 and $3.03. Analysts expect the full-year EPS to settle around $7.14.

Analysts Adjust Price Projections

Following the positive earnings results, several analysts increased their price targets. KeyCorp raised its outlook from $375 to $430, while Bank of America adjusted its target to $425. Wells Fargo, Benchmark, and Oppenheimer all set new targets at $400.

TD Cowen also established a $400 target, citing growth in aerospace and datacenter markets. The average consensus target is now $370.69, supported by 24 buy ratings and three strong buy recommendations.

In January, Zacks upgraded the stock to a strong buy and subsequently included it in several income and momentum lists in April.

One point of caution: ADI’s price-to-earnings ratio is currently 64.68, a level some analysts consider high compared to industry competitors.

Dividend Growth Continues for 23rd Year

ADI increased its quarterly payout to $1.10 per share, up from $0.99. This results in an annual dividend of $4.40, providing a yield of about 1.2% at current market levels.

The dividend was distributed on March 17 to investors of record as of March 3. This represents the 23rd year in a row that the company has boosted its dividend.

Institutional interest remains strong. During the fourth quarter, Mirae Asset Global Investments grew its stake by 23.3%, reaching a total of 521,561 shares valued at roughly $141.4 million.

In total, institutional entities own nearly 86.8% of ADI’s available shares.

Regarding insider activity, CEO Vincent Roche sold 10,000 shares on April 1 at an average price of $318.14, totaling $3.18 million. CAO Michael Sondel sold 4,199 shares in February at $361.02. Over the last 90 days, insiders have offloaded a total of 27,324 shares worth approximately $8.76 million.

ADI’s 50-day moving average is $330.76, while its 200-day moving average is $288.08, both of which remain significantly lower than the current share price.