What 11 Analyst Ratings Have To Say About Analog Devices

11 analysts have expressed a variety of opinions on Analog Devices ADI over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $205.45, a high estimate of $225.00, and a low estimate of $175.00. Marking an increase of 2.8%, the current average surpasses the previous average price target of $199.86.

Investigating Analyst Ratings: An Elaborate Study

The standing of Analog Devices among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Analog Devices. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Analog Devices compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Analog Devices's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Analog Devices's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Analog Devices analyst ratings.

Unveiling the Story Behind Analog Devices

Analog Devices is a leading analog, mixed signal, and digital signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers, and more than half of its chip sales are made to industrial and automotive end markets. Analog Devices' chips are also incorporated into wireless infrastructure equipment.

Unraveling the Financial Story of Analog Devices

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Negative Revenue Trend: Examining Analog Devices's financials over 3 months reveals challenges. As of 31 October, 2023, the company experienced a decline of approximately -16.36% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 18.35%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Analog Devices's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.39%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Analog Devices's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.02%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.2, Analog Devices adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.