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


As of Friday close, Analog Devices Inc.’s (NASDAQ:ADI) stock was down -$0.78, moving down -0.42 percent to $185.85. The average number of shares traded per day over the past five days has been 4,280,060 shares. 3 times new highs have been achieved over the past 5 days, with a $4.09 gain in that time frame. In the last twenty days, the average volume was 3,528,690, while in the previous 50 days, it was 3,492,288.

Since last month, ADI stock retreated -5.27%. Shares of the company fell to $179.08 on 03/13/23, the lowest level in the past month. A 52-week high of $196.41 was reached on 02/15/23 after having rallying from a 52-week low of $133.48. Since the beginning of this year, ADI’s stock price has risen by 13.30% or $21.82, and marked a new high 14 times. However, the stock has declined by -5.38% since its 52-week high.

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ADI stock investors should be aware that Analog Devices Inc. (ADI) stock had its last reported insider trading activity 4 days ago on Mar 14. CHAMPY JAMES, the Director of the company, disposed of 1,495 shares for $185.44 on Mar 14. It resulted in a $277,239 divestment by the insider. DOLUCA TUNC sold 5,100 shares at an average price of $183.86 on Mar 01. The insider now owns 59,657 shares following the transaction. On Feb 17, Director Frank Edward H. sold 5,000 shares at $193.09 apiece. The transaction was valued at $965,450.

Valuation Metrics

Right now, Analog Devices Inc. (ADI) has a P/E ratio of about 28.06. The stock’s beta is 1.15. Besides these, the trailing price-to-sales (P/S) ratio of 7.55, the price-to-book (PB) ratio of 2.58, and the price-to-cash flow ratio of 35.25 may also be considered.

The latest dividend of $0.86 per share was paid out, which is 13.16% more than last year’s $0.76. On Tuesday February 14 2023, a $0.10 dividend increase was announced.

Financial Health

In the three months ended October 30, Analog Devices Inc.’s quick ratio stood at 1.50, 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 October 30 was 0.18. On the profitability front, the trailing twelve-month gross margin is 65.60% percent. In the year ended October 30, operating margins totaled 32.20%. Based on annual data, ADI earned $7.53 billion in gross profit and brought in $12.01 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 6.80%. Return on equity (ROE) for the past 12 months was 9.40%.

In Analog Devices Inc.’s quarter-end financial report for October 30, it reported total debt of $6.54 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 17.4% to $3.25 billion during the quarter, while net income inched up to $3.25 billion. While analysts expected Analog Devices Inc. to report $2.58 quarterly earnings, the actual figure was $2.73 per share, beating the consensus estimate by 5.80%. During the quarter, the company generated $1.72 billion in EBITDA. The liabilities of Analog Devices Inc. were 13.7 billion at the end of its most recent quarter ended October 30, and its total debt was $6.94 billion. The value of shareholders’ equity is $505.85 million.

Technical Picture

This quick technical analysis looks at Analog Devices Inc.’s (ADI) price momentum. With a historical volatility rate of 22.15%, the RSI 9-day stood at 54.35% on 17 March.

With respect to its five-day moving average, the current Analog Devices Inc. price is up by +2.25% percent or $4.09. At present, ADI shares trade -4.12% below its 20-day simple moving average and +26.78% percent above its 100-day simple moving average. However, the stock is currently trading approximately +12.02% above its SMA50 and +10.36% above its SMA200.

Stochastic coefficient K was 62.35% and Stochastic coefficient D was 59.37%, while ATR was 4.82. Given the Stochastic reading of 69.65% for the 14-day period, the RSI (14) reading has been calculated as 55.12%. As of today, the MACD Oscillator reading stands at 0.54, while the 14-day reading stands at 0.54.


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