Analog Devices (ADI) Stock Just Hit an All-Time High — Analysts Still See Upside

TLDR

• ADI hit an all-time high of $363.29, up over 105% in the past year
• Q1 EPS came in at $2.46, beating estimates of $2.31, with revenue up 30.4% year-over-year
• Quarterly dividend raised to $1.10, up from $0.99, marking 23 consecutive years of increases
• Analyst price targets range from $360 to $430, with a consensus average of $370.69
• Institutional ownership stands at 86.8%, with Mirae Asset raising its stake by 23.3%

Analog Devices hit a fresh all-time high of $363.29 on Thursday, capping a run that has seen the stock more than double over the past 12 months.

Analog Devices, Inc., ADI

The chip maker’s stock opened Friday at $353.80 and carries a market cap of around $172.7 billion. Its 52-week low sits at $171.00, making the current level more than twice that mark.

The move comes after a strong Q1 earnings report in February. ADI posted EPS of $2.46, beating the consensus estimate of $2.31 by $0.15.

Revenue for the quarter came in at $3.16 billion, above the $3.10 billion estimate and up 30.4% compared to the same period last year.

For Q2, the company guided EPS in the range of $2.73 to $3.03. Full-year EPS is expected to come in around $7.14, according to analyst consensus.

Analysts Raise Targets

The earnings beat triggered a wave of price target increases. KeyCorp lifted its target from $375 to $430, while Bank of America moved to $425. Wells Fargo, Benchmark, and Oppenheimer all raised targets to $400.

TD Cowen also set a $400 target, pointing to strength in the datacenter and aerospace segments. The consensus average target now sits at $370.69, with 24 analysts holding buy ratings and three with strong buy.

Zacks upgraded the stock to a strong buy in January and added it to several momentum and income lists in April.

One watch item: ADI’s PE ratio sits at 64.68, which some analysts flag as elevated relative to peers.

Dividend Raised for 23rd Straight Year

ADI raised its quarterly dividend to $1.10 per share, up from $0.99. The annualized payout is $4.40, representing a yield of roughly 1.2% at current prices.

The dividend was paid March 17 to shareholders of record as of March 3. The company has now raised its dividend for 23 consecutive years.

Institutional investors continue to build positions. Mirae Asset Global Investments increased its stake by 23.3% in Q4, bringing its holding to 521,561 units worth about $141.4 million.

Overall, institutional investors own approximately 86.8% of ADI’s outstanding stock.

On the insider side, CEO Vincent Roche sold 10,000 units on April 1 at an average price of $318.14, totaling $3.18 million. CAO Michael Sondel sold 4,199 units in February at $361.02. Insiders have sold a combined 27,324 units worth roughly $8.76 million over the past 90 days.

ADI’s 50-day moving average stands at $330.76 and the 200-day at $288.08, both well below the current price.

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