Analog Devices (ADI) Rating Lowered to Hold at Zacks Investment Research

Analog Devices (NASDAQ:ADI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.

According to Zacks, “Over the last one year, Analog Devices has outperformed the industry it belongs to. The compoany is benefiting from strong industrial, automotive and communications end-markets. While Analog Devices’ investments are aimed at strengthening the product line and countering increasing competition, the policy of returning cash through dividends and share buybacks ensures investor loyalty. The company is currently riding on strength across all the markets and positive contributions from Linear Technology acquisition. Analog Devices' leading market position, focus on communications, automotive and industrial markets, margin expansion initiatives and strong balance sheet are positives. However, we remain concerned about competitive pressure across several markets.”

A number of other research firms have also weighed in on ADI. BidaskClub raised shares of Analog Devices from a “hold” rating to a “buy” rating in a report on Saturday, January 20th. B. Riley reissued a “buy” rating and issued a $122.00 target price (up from $113.00) on shares of Analog Devices in a report on Wednesday, February 28th. SunTrust Banks raised their target price on shares of Analog Devices to $116.00 and gave the company a “positive” rating in a report on Thursday, April 12th. They noted that the move was a valuation call. KeyCorp raised their target price on shares of Analog Devices from $107.00 to $110.00 and gave the company an “overweight” rating in a report on Thursday, March 1st. Finally, BMO Capital Markets raised their target price on shares of Analog Devices from $100.00 to $107.00 and gave the company an “outperform” rating in a report on Thursday, March 1st. Seven investment analysts have rated the stock with a hold rating and nineteen have assigned a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus price target of $101.21.



ADI traded up $1.10 during trading on Monday, reaching $93.70. 135,850 shares of the company traded hands, compared to its average volume of 2,887,319. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.76 and a quick ratio of 1.31. Analog Devices has a 12-month low of $93.49 and a 12-month high of $94.93. The firm has a market cap of $34.24 billion, a P/E ratio of 19.85, a price-to-earnings-growth ratio of 1.37 and a beta of 1.24.

Analog Devices (NASDAQ:ADI) last announced its quarterly earnings data on Wednesday, February 28th. The semiconductor company reported $1.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.29 by $0.13. Analog Devices had a net margin of 13.80% and a return on equity of 18.78%. The business had revenue of $1.52 billion during the quarter, compared to analyst estimates of $1.49 billion. During the same period last year, the firm posted $0.94 EPS. The company’s revenue was up 54.4% on a year-over-year basis. sell-side analysts anticipate that Analog Devices will post 5.63 earnings per share for the current year.

In other Analog Devices news, SVP Margaret K. Seif sold 7,000 shares of Analog Devices stock in a transaction on Monday, March 5th. The shares were sold at an average price of $88.83, for a total transaction of $621,810.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Vincent Roche sold 10,000 shares of Analog Devices stock in a transaction on Tuesday, May 1st. The stock was sold at an average price of $86.95, for a total transaction of $869,500.00. Following the transaction, the chief executive officer now directly owns 17,376 shares of the company’s stock, valued at $1,510,843.20. The disclosure for this sale can be found here. Insiders have sold 67,106 shares of company stock valued at $6,060,346 over the last ninety days. 0.70% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. JPMorgan Chase & Co. lifted its position in shares of Analog Devices by 17.7% during the first quarter. JPMorgan Chase & Co. now owns 22,229,063 shares of the semiconductor company’s stock worth $2,025,734,000 after purchasing an additional 3,344,969 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its position in shares of Analog Devices by 30.2% during the first quarter. Massachusetts Financial Services Co. MA now owns 13,729,787 shares of the semiconductor company’s stock worth $1,251,195,000 after purchasing an additional 3,184,232 shares during the last quarter. Ceredex Value Advisors LLC bought a new stake in shares of Analog Devices during the first quarter worth $108,490,000. Sterling Capital Management LLC bought a new stake in shares of Analog Devices during the fourth quarter worth $87,511,000. Finally, Boston Partners bought a new stake in shares of Analog Devices during the fourth quarter worth $67,877,000. 88.88% of the stock is owned by institutional investors.

About Analog Devices

Analog Devices, Inc designs, manufactures, and markets a portfolio of solutions that leverage analog, mixed-signal, and digital signal processing technology, including integrated circuits (ICs), algorithms, software, and subsystems. It offers data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; high-performance amplifiers to condition analog signals; and radio frequency ICs to support cellular infrastructure.

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