Analog Devices, Inc. (NASDAQ:ADI) Plans $0.99 Quarterly Dividend

Analog Devices, Inc. (NASDAQ:ADI) announced a quarterly dividend on Thursday, May 22nd, RTT News reports. Shareholders of record on Wednesday, June 4th will be given a dividend of 0.99 per share by the semiconductor company on Wednesday, June 18th. This represents a $3.96 annualized dividend and a yield of 1.87%.

Analog Devices has increased its dividend by an average of 10.1% per year over the last three years and has raised its dividend every year for the last 23 years. Analog Devices has a payout ratio of 44.9% meaning its dividend is sufficiently covered by earnings. Analysts expect Analog Devices to earn $8.59 per share next year, which means the company should continue to be able to cover its $3.96 annual dividend with an expected future payout ratio of 46.1%.

Analog Devices Stock Performance

Shares of ADI opened at $211.93 on Friday. The stock’s 50-day simple moving average is $197.63 and its 200 day simple moving average is $210.41. The stock has a market capitalization of $105.11 billion, a price-to-earnings ratio of 67.49, a price-to-earnings-growth ratio of 2.85 and a beta of 0.98. 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 has a 52-week low of $158.65 and a 52-week high of $247.10.

Analog Devices (NASDAQ:ADI) last posted its quarterly earnings data on Thursday, May 22nd. The semiconductor company reported $1.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.70 by $0.15. Analog Devices had a return on equity of 8.91% and a net margin of 16.75%. The company had revenue of $2.64 billion during the quarter, compared to analyst estimates of $2.50 billion. During the same quarter last year, the company earned $1.40 earnings per share. The firm’s quarterly revenue was up 22.3% on a year-over-year basis. Research analysts forecast that Analog Devices will post 7.14 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms recently weighed in on ADI. Maxim Group started coverage on shares of Analog Devices in a research report on Friday, February 14th. They issued a “buy” rating on the stock. Citigroup boosted their price target on shares of Analog Devices from $235.00 to $260.00 and gave the stock a “buy” rating in a research note on Monday. Oppenheimer increased their price target on shares of Analog Devices from $225.00 to $265.00 and gave the stock an “outperform” rating in a report on Friday, May 16th. Barclays dropped their price objective on shares of Analog Devices from $240.00 to $170.00 and set an “equal weight” rating for the company in a report on Tuesday, April 22nd. Finally, JPMorgan Chase & Co. increased their target price on Analog Devices from $280.00 to $300.00 and gave the company an “overweight” rating in a research note on Thursday, February 20th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and sixteen have issued a buy rating to the company. According to MarketBeat.com, Analog Devices presently has an average rating of “Moderate Buy” and a consensus target price of $252.35.

Insider Activity at Analog Devices

In related news, CEO Vincent Roche sold 10,000 shares of Analog Devices stock in a transaction 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 transaction, the chief executive officer now directly owns 64,918 shares of the company’s stock, valued at $13,575,652.16. The trade was a 13.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Richard C. Puccio, Jr. sold 4,000 shares of the stock in a transaction on Wednesday, March 19th. The shares were sold at an average price of $209.19, for a total transaction of $836,760.00. Following the sale, the chief financial officer now directly owns 49,916 shares of the company’s stock, valued at $10,441,928.04. The trade was a 7.42% decrease in their position. The disclosure for this sale can be found here. Insiders sold 42,934 shares of company stock worth $8,735,156 in the last ninety days. 0.33% of the stock is owned by company insiders.

Institutional Trading of Analog Devices

An institutional investor recently raised its position in Analog Devices stock. Brighton Jones LLC grew its holdings in Analog Devices, Inc. (NASDAQ:ADI) by 39.5% in the 4th quarter, according to the company in its most recent filing with the SEC. The firm owned 1,867 shares of the semiconductor company’s stock after buying an additional 529 shares during the quarter. Brighton Jones LLC’s holdings in Analog Devices were worth $397,000 at the end of the most recent quarter. Institutional investors own 86.81% of the company’s stock.

Analog Devices announced that its Board of Directors has initiated a share buyback plan on Tuesday, February 18th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the semiconductor company to reacquire up to 9.2% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

About Analog Devices

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.