Analog Devices (NASDAQ:ADI) Hits New 12-Month Low – Should You Sell?

Analog Devices, Inc. (NASDAQ:ADI) reached a new 52-week low on Thursday . The stock traded as low as $180.40 and last traded at $182.01, with a volume of 2724948 shares traded. The stock had previously closed at $199.59.

Analyst Upgrades and Downgrades

Several analysts have commented on the company. Wells Fargo & Company lifted their price target on Analog Devices from $220.00 to $240.00 and gave the company an “equal weight” rating in a report on Thursday, February 20th. Needham & Company LLC reaffirmed a “hold” rating on shares of Analog Devices in a research report on Thursday, February 20th. UBS Group lifted their price target on shares of Analog Devices from $275.00 to $300.00 and gave the company a “buy” rating in a report on Thursday, February 20th. Williams Trading set a $245.00 target price on Analog Devices in a research report on Friday, February 14th. Finally, Oppenheimer reissued an “outperform” rating and set a $270.00 price target (up previously from $245.00) on shares of Analog Devices in a research report on Thursday, February 20th. Six equities research analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $255.41.

Analog Devices Stock Down 9.0 %

The firm has a fifty day simple moving average of $213.22 and a 200-day simple moving average of $218.36. The company has a market capitalization of $81.64 billion, a PE ratio of 52.42, a P/E/G ratio of 2.85 and a beta of 1.06. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.43 and a current ratio of 1.93.

Analog Devices (NASDAQ:ADI) last posted its quarterly earnings results on Wednesday, February 19th. The semiconductor company reported $1.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.54 by $0.09. The firm had revenue of $2.42 billion for the quarter, compared to analysts’ expectations of $2.36 billion. Analog Devices had a net margin of 16.75% and a return on equity of 8.91%. The firm’s quarterly revenue was down 3.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.73 earnings per share. Equities research analysts anticipate that Analog Devices, Inc. will post 7.14 EPS for the current fiscal year.

Analog Devices Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 17th. Investors of record on Tuesday, March 4th were paid a $0.99 dividend. This represents a $3.96 dividend on an annualized basis and a yield of 2.41%. This is an increase from Analog Devices’s previous quarterly dividend of $0.92. The ex-dividend date of this dividend was Tuesday, March 4th. Analog Devices’s dividend payout ratio (DPR) is 126.11%.

Analog Devices declared that its board has approved a share repurchase program on Tuesday, February 18th that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the semiconductor company to buy up to 9.2% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at Analog Devices

In other Analog Devices news, CFO Richard C. Puccio, Jr. sold 4,000 shares of the company’s stock in a transaction dated Wednesday, March 19th. The shares were sold at an average price of $209.19, for a total value of $836,760.00. Following the completion of the transaction, the chief financial officer now owns 49,916 shares in the company, valued at approximately $10,441,928.04. This represents a 7.42 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Vincent Roche sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 12th. The shares were sold at an average price of $209.12, for a total value of $2,091,200.00. Following the completion of the sale, the chief executive officer now owns 64,918 shares in the company, valued at approximately $13,575,652.16. This represents a 13.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 26,684 shares of company stock worth $5,591,600. 0.33% of the stock is currently owned by corporate insiders.

Institutional Trading of Analog Devices

A number of institutional investors have recently made changes to their positions in the stock. Quent Capital LLC raised its holdings in shares of Analog Devices by 6.0% in the 1st quarter. Quent Capital LLC now owns 1,649 shares of the semiconductor company’s stock worth $333,000 after purchasing an additional 94 shares in the last quarter. Cullen Investment Group LTD. boosted its stake in shares of Analog Devices by 11.0% during the 1st quarter. Cullen Investment Group LTD. now owns 23,577 shares of the semiconductor company’s stock worth $4,755,000 after acquiring an additional 2,345 shares in the last quarter. Trust Co of the South grew its holdings in shares of Analog Devices by 2.1% in the 1st quarter. Trust Co of the South now owns 3,439 shares of the semiconductor company’s stock worth $694,000 after acquiring an additional 71 shares during the last quarter. Fire Capital Management LLC purchased a new stake in shares of Analog Devices during the fourth quarter valued at $352,000. Finally, Wellington Management Group LLP lifted its holdings in shares of Analog Devices by 67.7% during the fourth quarter. Wellington Management Group LLP now owns 72,698 shares of the semiconductor company’s stock valued at $15,445,000 after purchasing an additional 29,349 shares during the last quarter. 86.81% of the stock is owned by institutional investors and hedge funds.

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.