Analog Devices Inc. (NASDAQ:ADI) has a beta of 1.25, a 12-month trailing P/E ratio of 38.71, and a growth ratio of 2.96. The stock’s Relative Strength Index (RSI) is 49.24, with weekly volatility at 1.91% and ATR at 3.42. The ADI stock’s 52-week price range has touched low of $110.47 and a $168.93 high. Its shares traded lower over the last trading session, losing -2.42% on 06/18/21. The shares fell to a low of $161.47 before closing at $162.19. Intraday shares traded counted 3.91 million, which was -21.04% lower than its 30-day average trading volume of 3.23M. ADI’s previous close was $166.22 while the outstanding shares total 368.82M.
Investors have identified the Semiconductors company Analog Devices Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $61.31 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Analog Devices Inc. (ADI) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ADI, the company has in raw cash 1.31 billion on their books with 1.32 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 2.9 billion total, with 2.78 billion as their total liabilities.
ADI were able to record 1.04 billion as free cash flow during the 08/25/2021 quarter of the year, this saw their quarterly net cash flow reduce by 249.36 million. In cash movements, the company had a total of 1.16 billion as operating cash flow.
Potential earnings growth for Analog Devices Inc. (ADI)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/25/2021 quarter of the year, Analog Devices Inc. recorded a total of 1.66 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 20.73% coming in sequential stages and their sales for the 08/25/2021 quarter increasing by 6.2%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 524.77 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.14 billion. This allows shareholders to hold on to 368.82M with the recently reported earning now reading 1.15 cents per share. This is a figure that compared to analyst’s prediction for their 08/25/2021 (1.54 cents a share).
Having a look at the company’s valuation, the company is expected to record 6.84 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ADI sounds very interesting.
Is the stock of ADI attractive?
In related news, SVP, Atmtve, Comm, ArSpc & Def, Henderson Gregory N. sold 6,078 shares of the company’s stock in a transaction that recorded on Jun 15. The sale was performed at an average price of 168.43, for a total value of 1,023,718. As the sale deal closes, the President & CEO, ROCHE VINCENT now sold 10,000 shares of the company’s stock, valued at 1,642,000. Also, SVP, Finance & CFO, Mahendra-Rajah Prashanth sold 6,750 shares of the company’s stock in a deal that was recorded on May 27. The shares were price at an average price of 165.18 per share, with a total market value of 1,114,988. Following this completion of acquisition, the President & CEO, ROCHE VINCENT now holds 10,000 shares of the company’s stock, valued at 1,540,600. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
16 out of 23 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Analog Devices Inc.. 0 analysts has assigned a Sell rating on the ADI stock. The 12-month mean consensus price target for the company’s shares has been set at $183.35.