Analog Devices (NASDAQ:ADI) Sets New 52-Week High Following Strong Earnings

Analog Devices, Inc. (NASDAQ:ADI) hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $354.30 and last traded at $349.6590, with a volume of 222251 shares traded. The stock had previously closed at $337.51.

The semiconductor company reported $2.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.31 by $0.15. Analog Devices had a return on equity of 12.49% and a net margin of 23.02%.The business had revenue of $3.16 billion for the quarter, compared to analyst estimates of $3.10 billion. During the same quarter in the prior year, the company posted $1.63 earnings per share. Analog Devices’s revenue was up 30.4% on a year-over-year basis. Analog Devices has set its Q2 2026 guidance at 2.730-3.030 EPS.

Analog Devices Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd will be issued a $1.10 dividend. This represents a $4.40 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Tuesday, March 3rd. This is a boost from Analog Devices’s previous quarterly dividend of $0.99. Analog Devices’s payout ratio is currently 86.84%.

Analog Devices News Roundup

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

• Positive Sentiment: Q1 results beat and guidance materially above Street expectations — ADI reported $2.46 adj. EPS vs. $2.31 expected and $3.16B revenue (up ~30% YoY); management issued Q2 EPS guidance well above consensus and cited record data-center orders and broad industrial strength. This is the primary bullish driver behind recent analyst upgrades. PR Newswire: ADI Q1 Results
• Positive Sentiment: AI and data-center momentum underpin the outlook — multiple write-ups highlight AI infrastructure and data-center demand as key drivers for accelerating revenue and margins into Q2 and beyond. Investors are treating ADI as an AI-infrastructure beneficiary, not just a legacy analog supplier. Yahoo Finance: ADI Q4 Deep Dive
• Positive Sentiment: Capital returns and cash flow are strong — ADI raised its quarterly dividend 11% to $1.10, reported robust operating/free cash flow and resumed meaningful buybacks, supporting shareholder-return narratives. That reinforces buy-side conviction. PR Newswire: Dividend & Cash Flow
• Positive Sentiment: Analysts responded with a flurry of upgrades and price-target raises — firms including JPMorgan, Wells Fargo, Needham, Benchmark and Cantor (many to ~$400) raised ratings/targets after the print, creating a tailwind for sentiment and potential inflows. Investor’s Business Daily: Price-Target Hikes
• Neutral Sentiment: Short-interest data in public feeds shows anomalies (zeros / NaN) and is not signaling material bearish pressure; short interest appears negligible. No clear short-squeeze risk or headwind from shorts based on available data.
• Neutral Sentiment: Corporate governance debate noted — a special-meeting/rights discussion is in the background; worth monitoring but not an immediate earnings-related threat. Yahoo Finance: Governance Debate
• Negative Sentiment: Valuation and profit-taking risk — ADI now trades at a stretched multiple (high P/E) after the rally; some intraday weakness likely reflects investors locking gains and digesting lofty expectations, which can cap near-term upside.
• Negative Sentiment: Muted or mixed price reaction in some channels — a few commentators noted the stock’s response was “muted” despite strong results, suggesting some investors are skeptical about sustainability or are awaiting more confirmation from subsequent quarters. Seeking Alpha: Muted Market Reaction

Analysts Set New Price Targets

A number of brokerages have commented on ADI. Wall Street Zen upgraded shares of Analog Devices from a “hold” rating to a “buy” rating in a research note on Saturday, January 17th. TD Cowen reaffirmed a “buy” rating on shares of Analog Devices in a report on Thursday. Jefferies Financial Group reiterated a “buy” rating and set a $410.00 price target on shares of Analog Devices in a report on Thursday. Stifel Nicolaus set a $405.00 price target on Analog Devices in a research report on Wednesday. Finally, The Goldman Sachs Group raised their price objective on Analog Devices from $300.00 to $370.00 and gave the company a “buy” rating in a research report on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $366.96.

Insider Activity

In other news, CAO Michael Sondel sold 8,169 shares of the company’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $278.03, for a total value of $2,271,227.07. Following the transaction, the chief accounting officer owned 18,913 shares of the company’s stock, valued at approximately $5,258,381.39. This represents a 30.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Katsufumi Nakamura sold 500 shares of the stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $301.46, for a total value of $150,730.00. Following the transaction, the senior vice president owned 12,710 shares in the company, valued at approximately $3,831,556.60. This trade represents a 3.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 53,544 shares of company stock valued at $15,320,417. Company insiders own 0.36% of the company’s stock.

Institutional Investors Weigh In On Analog Devices

A number of large investors have recently added to or reduced their stakes in ADI. Brighton Jones LLC raised its holdings in Analog Devices by 39.5% in the 4th quarter. Brighton Jones LLC now owns 1,867 shares of the semiconductor company’s stock valued at $397,000 after acquiring an additional 529 shares in the last quarter. Sivia Capital Partners LLC increased its position in shares of Analog Devices by 36.0% in the second quarter. Sivia Capital Partners LLC now owns 1,752 shares of the semiconductor company’s stock worth $417,000 after purchasing an additional 464 shares during the period. Chicago Partners Investment Group LLC acquired a new position in Analog Devices in the second quarter valued at about $419,000. D.A. Davidson & CO. lifted its position in Analog Devices by 27.1% during the second quarter. D.A. Davidson & CO. now owns 9,162 shares of the semiconductor company’s stock worth $2,181,000 after purchasing an additional 1,951 shares during the period. Finally, Brookstone Capital Management lifted its position in Analog Devices by 18.3% during the second quarter. Brookstone Capital Management now owns 2,241 shares of the semiconductor company’s stock worth $533,000 after purchasing an additional 346 shares during the period. Institutional investors and hedge funds own 86.81% of the company’s stock.

Analog Devices Price Performance

The company has a quick ratio of 1.68, a current ratio of 1.76 and a debt-to-equity ratio of 0.21. The stock has a market capitalization of $168.72 billion, a price-to-earnings ratio of 63.13, a P/E/G ratio of 1.99 and a beta of 1.03. The business’s 50 day simple moving average is $300.90 and its 200-day simple moving average is $263.74.

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.