Analog Devices (NASDAQ:ADI) Rating Increased to Strong-Buy at BMO Capital Markets

BMO Capital Markets upgraded shares of Analog Devices (NASDAQ:ADI) to a strong-buy rating in a report issued on Thursday morning,Zacks.com reports.

ADI has been the topic of several other reports. Wolfe Research restated an “outperform” rating and set a $475.00 price target on shares of Analog Devices in a research note on Thursday, May 21st. JPMorgan Chase & Co. raised their price objective on Analog Devices from $450.00 to $500.00 and gave the stock an “overweight” rating in a research report on Thursday. Sanford C. Bernstein raised Analog Devices from a “market perform” rating to an “outperform” rating and lifted their price objective for the stock from $430.00 to $465.00 in a report on Wednesday. Argus set a $460.00 price objective on Analog Devices in a research report on Tuesday, May 26th. Finally, Weiss Ratings lowered Analog Devices from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, July 28th. Three analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Analog Devices presently has a consensus rating of “Buy” and a consensus target price of $447.13.

Analog Devices Stock Performance

NASDAQ:ADI opened at $373.09 on Thursday. The firm’s 50-day moving average is $388.25 and its 200-day moving average is $371.11. Analog Devices has a 52-week low of $223.47 and a 52-week high of $445.91. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.34 and a current ratio of 1.25. The company has a market cap of $180.79 billion, a price-to-earnings ratio of 44.26, a PEG ratio of 0.94 and a beta of 1.20.

Analog Devices (NASDAQ:ADI) last announced its quarterly earnings data on Wednesday, August 19th. The semiconductor company reported $3.45 EPS for the quarter, beating analysts’ consensus estimates of $3.34 by $0.11. Analog Devices had a net margin of 29.79% and a return on equity of 16.39%. The business had revenue of $4.02 billion during the quarter, compared to analyst estimates of $3.92 billion. During the same quarter in the prior year, the business earned $2.05 earnings per share. The firm’s revenue for the quarter was up 39.2% on a year-over-year basis. Analog Devices has set its Q4 2026 guidance at 3.710-4.010 EPS. Equities research analysts anticipate that Analog Devices will post 12.72 earnings per share for the current year.

Analog Devices Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a $1.10 dividend. This represents a $4.40 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Tuesday, September 1st. Analog Devices’s dividend payout ratio is 52.19%.

Insider Buying and Selling at Analog Devices

In other Analog Devices news, Director Karen Golz sold 1,000 shares of the firm’s stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $389.83, for a total transaction of $389,830.00. Following the completion of the transaction, the director owned 11,019 shares in the company, valued at $4,295,536.77. This trade represents a 8.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Martin Cotter sold 17,594 shares of Analog Devices stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $418.00, for a total value of $7,354,292.00. Following the sale, the senior vice president directly owned 56,332 shares in the company, valued at $23,546,776. The trade was a 23.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 75,274 shares of company stock worth $30,343,386 in the last three months. 0.36% of the stock is currently owned by company insiders.

Institutional Trading of Analog Devices

Large investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in Analog Devices during the second quarter worth $18,610,868,000. Bank of America Corp DE acquired a new stake in shares of Analog Devices in the 2nd quarter valued at $3,573,081,000. Norges Bank bought a new stake in shares of Analog Devices in the 4th quarter worth about $2,215,516,000. Legal & General Group Plc acquired a new stake in shares of Analog Devices during the 2nd quarter worth about $1,525,167,000. Finally, Bank of New York Mellon Corp bought a new position in Analog Devices during the 2nd quarter valued at about $1,326,066,000. 86.81% of the stock is currently owned by institutional investors.

Analog Devices News Summary

Here are the key news stories impacting Analog Devices this week:

• Positive Sentiment: Strong earnings and guidance: ADI reported record fiscal Q3 revenue of $4.02 billion, up about 40% year over year and ahead of the $3.92 billion consensus estimate. Adjusted EPS of $3.45 also exceeded expectations. Management’s fiscal Q4 EPS outlook of $3.71 to $4.01 points to continued momentum. Analog Devices Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: AI and data-center growth: Revenue from data-center applications reportedly more than doubled, while demand tied to AI infrastructure, power management, optical connectivity and energy systems is creating a multiyear growth opportunity. Management highlighted a potential 100-gigawatt data-center buildout by 2031. Analog Devices Q3 Earnings Call Highlights AI Power Growth Runway
• Positive Sentiment: Broad analyst support: JPMorgan raised its price target to $500 and maintained an Overweight rating. Needham, TD Cowen and Susquehanna also reiterated Buy-equivalent ratings, with targets ranging from $450 to $475. These revisions reflect confidence in AI demand, margin expansion and an improving industrial recovery. Analog Devices Is Cashing in on the AI Boom
• Neutral Sentiment: Relative investment appeal: Comparisons with Texas Instruments and dividend-focused AI investment ideas portray ADI as a financially solid way to gain analog-chip and AI exposure, though they do not represent new company-specific catalysts. ADI vs. TXN: Which Analog Processing Chip Stock Has an Edge Right Now?
• Negative Sentiment: Macro and valuation risks: Semiconductor stocks faced pressure from a sharp rise in the 30-year Treasury yield, which can weigh on high-valuation growth shares. One analysis also downgraded ADI, arguing that multiple contraction and elevated expectations could limit gains despite strong fundamentals. Chip Stocks Fell on Higher Treasury Yields

About Analog Devices

Analog Devices, Inc (NASDAQ: ADI) is a multinational semiconductor company that designs, manufactures and markets a broad portfolio of analog, mixed-signal and digital signal processing integrated circuits. Founded in 1965 by Ray Stata and Matthew Lorber, the company has grown into a leading supplier of components that convert, condition and process real-world signals for electronic systems. Analog Devices is headquartered in Massachusetts and serves customers around the world across multiple end markets.

The company’s product lineup includes data converters (ADCs and DACs), amplifiers, power management ICs, radio-frequency (RF) and microwave components, sensors and MEMS devices, signal chain and isolation products, timing and clocking solutions, and embedded processors and software for system-level design.