Technicals Say Analog Devices Inc. (ADI) Is Worth Holding

At the last check on Friday, Analog Devices Inc.’s (NASDAQ:ADI) stock was up $5.21, moving up 3.41 percent to $158.10. The average number of shares traded per day over the past five days has been 3,007,342 shares. 2 times new highs have been achieved over the past 5 days, with a $1.01 gain in that time frame. In the last twenty days, the average volume was 3,267,771, while in the previous 50 days, it was 3,657,040.


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Since last month, ADI stock retreated -1.68%. Shares of the company fell to $149.68 on 04/27/22, the lowest level in the past month. A 52-week high of $191.95 was reached on 01/04/22 after having rallying from a 52-week low of $143.81. Since the beginning of this year, ADI’s stock price has dropped by -13.02% or -$18.63, and marked a new high 2 times. However, the stock has declined by -17.63% since its 52-week high.

Analog Devices Inc. (ADI) last reported insider trading activity 11 days ago on May 02. DOLUCA TUNC, the Director of the company, disposed of 2,400 shares for $155.34 on May 02. It resulted in a $372,816 divestment by the insider. DOLUCA TUNC sold 4,700 shares at an average price of $166.50 on Apr 01. The insider now owns 91,357 shares following the transaction. On Mar 29, Director DOLUCA TUNC sold 4,600 shares at $170.00 apiece. The transaction was valued at $782,000.

Valuation Metrics

Right now, Analog Devices Inc. (ADI) has a P/E ratio of about 48.18. The stock’s beta is 1.07. Besides these, the trailing price-to-sales (P/S) ratio of 9.60, the price-to-book (PB) ratio of 2.15, and the price-to-cash flow ratio of 52.89 may also be considered.

The latest dividend of $0.76 per share was paid out, which is 10.14% more than last year’s $0.69. On Tuesday February 15 2022, a $0.07 dividend increase was announced.

Financial Health

In the three months ended January 30, Analog Devices Inc.’s quick ratio stood at 1.60, while its current ratio was 2.10, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending January 30 was 0.17, and the total debt-to-equity ratio was 0.17. On the profitability front, the trailing twelve-month gross margin is 57.80% percent. In the year ended January 30, operating margins totaled 16.30%. Based on annual data, ADI earned $4.53 billion in gross profit and brought in $7.32 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 3.40%. Return on equity (ROE) for the past 12 months was 5.10%.

In Analog Devices Inc.’s quarter-end financial report for January 30, it reported total debt of $6.25 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. ADI’s revenue rose 41.94% to $2.34 billion during the quarter, while net income inched up to $2.68 billion. While analysts expected Analog Devices Inc. to report $1.78 quarterly earnings, the actual figure was $1.94 per share, beating the consensus estimate by 9.00%. During the quarter, the company generated $934.57 million in EBITDA. The liabilities of Analog Devices Inc. were 13.79 billion at the end of its most recent quarter ended January 30, and its total debt was $6.25 billion. The value of shareholders’ equity is $523.32 million.

Technical Picture

This quick technical analysis looks at Analog Devices Inc.’s (ADI) price momentum. With a historical volatility rate of 38.87%, the RSI 9-day stood at 51.23% on 12 May.

With respect to its five-day moving average, the current Analog Devices Inc. price is up by +0.65% percent or $1.01. At present, ADI shares trade +0.41% above its 20-day simple moving average and -6.64% percent below its 100-day simple moving average. However, the stock is currently trading approximately -1.34% below its SMA50 and -5.64% below its SMA200.

Stochastic coefficient K was 28.39% and Stochastic coefficient D was 25.05%, while ATR was 5.57. Given the Stochastic reading of 48.95% for the 14-day period, the RSI (14) reading has been calculated as 49.85%. As of today, the MACD Oscillator reading stands at -2.38, while the 14-day reading stands at -2.07.

Analyst Ratings

UBS reiterated its a Buy rating on Analog Devices Inc. (NASDAQ: ADI) in a note to investors. The analysts firm has however raised their price target to $225, representing a possible 28.14% increase in the stock price.

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