Everett Harris & Co. has made a significant investment in Analog Devices, Inc. (NASDAQ: ADI), purchasing 845 shares valued at approximately $201,000. This acquisition was disclosed in the firm’s recent 13F filing with the U.S. Securities and Exchange Commission (SEC) for the second quarter. This move highlights the growing interest among institutional investors in the semiconductor sector, particularly in Analog Devices, a key player in the industry.
In addition to Everett Harris, several other major investors have adjusted their holdings in Analog Devices. Notably, Activest Wealth Management increased its stake by an extraordinary 6,350% in the first quarter, bringing its total to 129 shares valued at $26,000 after adding 127 shares. Other firms, including RMG Wealth Management LLC and N.E.W. Advisory Services LLC, have also initiated new positions in the company, indicating a robust interest in Analog Devices’ growth potential. Currently, institutional investors control 86.81% of the company’s stock.
Insider Trading Activity
Recent insider trading activity has raised eyebrows, with Edward H. Frank, a director at Analog Devices, selling 1,000 shares on October 6, 2023, at an average price of $242.74, totaling $242,740. This transaction reduced his ownership by 16.35%, leaving him with 5,118 shares valued at approximately $1.24 million.
Similarly, Vincent Roche, the CEO, divested 20,000 shares on August 27, 2023, at an average price of $254.29, amounting to $5.08 million. Following this sale, Roche retained 23,515 shares valued at around $5.98 million, marking a 45.96% decrease in his holdings. In total, company insiders sold 62,240 shares worth $15.3 million in the past three months, while insiders currently own 0.33% of the stock.
Financial Performance and Market Outlook
Analog Devices recently reported its quarterly earnings on August 20, 2023. The company exceeded analysts’ expectations with earnings per share (EPS) of $2.05, surpassing the consensus estimate of $1.95 by $0.10. Revenue for the quarter reached $2.88 billion, exceeding analyst forecasts of $2.76 billion. The company enjoyed a net margin of 18.85% and a return on equity of 10.32%. Compared to the same period last year, revenue increased by 24.6%, with the company reporting an EPS of $1.58 in the prior year.
Looking ahead, Analog Devices has provided guidance for the fourth quarter of 2025, projecting an EPS between $2.120 and $2.320. Analysts predict an annual EPS of $7.14 for the current year, reflecting confidence in the company’s growth trajectory.
In addition to its financial performance, Analog Devices declared a quarterly dividend of $0.99 per share, which was paid on September 16, 2023, to shareholders on record as of September 2, 2023. This translates to an annualized dividend of $3.96 with a yield of 1.6%. The company’s dividend payout ratio currently stands at 101.02%, indicating a commitment to returning value to shareholders.
Equities research analysts have been optimistic about Analog Devices’ future, with recommendations supporting a consensus rating of “Moderate Buy.” Recent assessments include price targets raised by firms such as Piper Sandler, which increased its target from $215.00 to $245.00, and KeyCorp, which raised its target from $300.00 to $310.00. The stock is currently covered by 29 analysts, with two rating it a Strong Buy, nineteen issuing Buy ratings, and eight assigning a Hold rating.
Analog Devices, Inc. continues to position itself as a leader in the semiconductor sector, designing and manufacturing integrated circuits, software, and subsystems globally. The firm specializes in data converter products, power management solutions, and integrated circuits, serving various markets including automotive, industrial, and consumer electronics.
