Truist has recently reduced Analog Devices, Inc. (ADI) stock to Hold rating, as announced on September 23, 2024, according to Finviz. Earlier, on May 23, 2024, TD Cowen had reiterated the stock to Buy, setting a price target of $270 for ADI stock. Jefferies also initiated Buy rating with a price target of $250. Additionally, Evercore ISI initiated Outperform rating on April 16, 2024, with a target price of $254. Cantor Fitzgerald analysts, in their report published on January 23, 2024, also initiated Neutral rating for Analog Devices, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Analog Devices, Inc. (ADI) Stock Trading Recap
On Monday, Analog Devices, Inc. (ADI) stock saw a decline, ending the day at $220.47 which represents a decrease of $-5.33 or -2.36% from the prior close of $225.8. The stock opened at $223.85 and touched a low of $218.42 during the day, reaching a high of $225.01. The volume of shares traded was 3.11 million exceeding the average volume of 2.83 million.
ADI Stock Performance and Moving Averages
In recent trading, Analog Devices, Inc. (ADI) stock price has shown some volatility, fluctuating -1.66% over the last five trades and -5.32% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 5.80%, and it has gained 1.13% in the previous three months. Currently, ADI is trading at -2.71%, -2.59%, and 2.61% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, ADI, a Technology sector stock, is trading -9.70% below its 52-week high but remains 32.19% above its 52-week low. The Average True Range (ATR) (14 days) of 5.87 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Analog Devices, Inc.’s Profitability and Valuation Ratios
Analog Devices, Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 23.07% and a profit margin of 17.07%, with a gross margin of 5.80%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Analog Devices, Inc.’s market capitalization stands at $108.52 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 66.48, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 29.4. Additionally, the Price-to-Sales Ratio is 11.19, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.11, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.56% of Analog Devices, Inc. (ADI)’s shares, while financial institutions hold 88.97%.
Notable insider trades include ROCHE VINCENT, Chair & CEO at Analog Devices, Inc. (ADI), who sold 10000 shares on Nov 01 ’24, at $223.87 each, totaling $2.24 million. On Nov 01 ’24, Bryant Gregory M, EVP & Pres. Global Bus. Units, sold 20000 shares for $223.87 each, amounting to $4.48 million. Additionally, on Oct 01 ’24, ROCHE VINCENT sold 10000 shares at $228.93 each, generating $2.29 million.
