PNC Financial Services Group Inc. has reduced its stake in Analog Devices, Inc. (NASDAQ: ADI) by 2.0% during the second quarter of 2023. According to its latest Form 13F filing with the Securities and Exchange Commission (SEC), PNC now holds 152,790 shares of the semiconductor company after selling 3,075 shares in the recent quarter. As of this filing, PNC’s holdings in Analog Devices are valued at approximately $36.37 million.
Several other institutional investors have also adjusted their positions in Analog Devices. Vanguard Group Inc. increased its stake by 0.7% in the first quarter, acquiring an additional 359,841 shares and bringing its total to 49,465,370 shares, worth around $9.98 billion. Price T Rowe Associates Inc. MD raised its stake by 26.7%, owning now 11,425,084 shares valued at $2.30 billion. Similarly, Raymond James Financial Inc. grew its holdings by 0.3% and Amundi raised its stake by 29.2%. UBS Asset Management Americas LLC also increased its holdings by 1.9%.
Institutional investors collectively own 86.81% of Analog Devices’ stock, indicating strong confidence in the company’s future.
Recent Insider Transactions
In addition to these institutional changes, notable insider transactions have also occurred at Analog Devices. CEO Vincent Roche sold 10,000 shares on November 3, 2023, at an average price of $234.95, totaling $2.35 million. Roche now holds 163,640 shares valued at approximately $38.45 million, reflecting a 5.76% reduction in his ownership.
Director Edward H. Frank also sold 1,000 shares on October 6, 2023, for about $242,740. Following this transaction, Frank retains 5,118 shares, worth around $1.24 million, marking a 16.35% decrease in his stake. In total, insiders sold 62,240 shares valued at $15.30 million over the last quarter, with insiders currently holding 0.33% of the company’s stock.
Financial Performance and Outlook
Analog Devices reported its quarterly earnings on August 20, 2023, revealing earnings per share (EPS) of $2.05, exceeding analysts’ expectations of $1.95 by $0.10. The company recorded a return on equity of 10.32% and a net margin of 18.85%. Revenue for the quarter reached $2.88 billion, surpassing the forecast of $2.76 billion and marking a 24.6% increase from the same period last year.
Looking ahead, Analog Devices has set its Q4 2025 EPS guidance at between $2.12 and $2.32. Analysts predict an average EPS of $7.14 for the current year.
The company also announced a quarterly dividend of $0.99 per share, paid on September 16, 2023, to shareholders of record on September 2, 2023. This translates to an annualized dividend of $3.96 and a dividend yield of 1.7%, although the payout ratio stands at 101.02%.
Several analysts have recently updated their assessments of Analog Devices. BNP Paribas Exane initiated coverage with an “outperform” rating and a price target of $300.00. Evercore ISI also raised its price objective to $303.00. Barclays and Morgan Stanley increased their targets to $240.00 and $288.00, respectively. The average rating for Analog Devices is currently “Moderate Buy,” with a price target of $277.89.
Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits and subsystems globally, catering to various sectors including automotive, industrial, and consumer markets. The company specializes in converting real-world analog signals into digital data and vice versa, alongside power management solutions.
