Analog Devices (NASDAQ:ADI) Shares Gap Down – Here’s Why

Analog Devices, Inc. (NASDAQ:ADI) shares gapped down prior to trading on Wednesday . The stock had previously closed at $414.31, but opened at $390.00. Analog Devices shares last traded at $395.2870, with a volume of 1,491,364 shares trading hands.

More Analog Devices News

Here are the key news stories impacting Analog Devices this week:

• Positive Sentiment: ADI reported record fiscal Q2 results, with EPS of $3.09 and revenue of $3.62 billion, both above estimates, while revenue rose 37.2% year over year and management issued Q3 guidance that also topped consensus. Analog Devices Reports Record Fiscal Second Quarter 2026 Financial Results
• Positive Sentiment: Analysts raised price targets after the earnings beat, with firms pointing to stronger-than-expected execution and improving outlook for ADI’s analog and AI-related businesses. Analog Devices Analysts Boost Their Forecasts Following Upbeat Q2 Results
• Positive Sentiment: ADI announced a $1.5 billion all-cash acquisition of Empower Semiconductor, aimed at strengthening its AI data-center power-management portfolio and positioning the company for higher-density power delivery demand. Analog Devices to Participate in the Bank of America Global Technology Conference
• Neutral Sentiment: ADI will present at the Bank of America Global Technology Conference on June 2, which should keep investors focused on management’s commentary about demand trends, integration plans, and AI opportunities. Analog Devices to Participate in the Bank of America Global Technology Conference
• Negative Sentiment: Despite the strong report, the stock initially fell as investors appeared to “sell the news” after a large run-up and weighed near-term acquisition and integration risk from the Empower deal. Why is Analog Devices stock falling despite strong earnings and AI deal?

Wall Street Analysts Forecast Growth

ADI has been the subject of several recent analyst reports. Arete Research upgraded Analog Devices from a “neutral” rating to a “buy” rating and set a $389.00 price target for the company in a report on Monday, March 30th. Barclays lifted their price target on Analog Devices from $430.00 to $450.00 and gave the company an “overweight” rating in a report on Thursday. Oppenheimer lifted their price target on Analog Devices from $400.00 to $450.00 and gave the company an “outperform” rating in a report on Tuesday, May 12th. KeyCorp lifted their price target on Analog Devices from $430.00 to $500.00 and gave the company an “overweight” rating in a report on Thursday. Finally, Needham & Company LLC lifted their price target on Analog Devices from $400.00 to $440.00 and gave the company a “buy” rating in a report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $423.79.

Analog Devices Trading Down 3.5%

The company has a quick ratio of 1.35, a current ratio of 1.75 and a debt-to-equity ratio of 0.21. The firm has a market cap of $187.57 billion, a price-to-earnings ratio of 57.09, a price-to-earnings-growth ratio of 1.60 and a beta of 1.19. The business has a 50 day moving average price of $360.07 and a 200-day moving average price of $315.22.

Analog Devices (NASDAQ:ADI) last posted its earnings results on Wednesday, May 20th. The semiconductor company reported $3.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.89 by $0.20. The business had revenue of $3.62 billion during the quarter, compared to analyst estimates of $3.51 billion. Analog Devices had a return on equity of 14.37% and a net margin of 26.01%.The company’s revenue for the quarter was up 37.2% compared to the same quarter last year. During the same quarter last year, the firm earned $1.85 earnings per share. Analog Devices has set its Q3 2026 guidance at 3.150-3.450 EPS. As a group, research analysts expect that Analog Devices, Inc. will post 11.35 EPS for the current fiscal year.

Analog Devices Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be issued a $1.10 dividend. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $4.40 dividend on an annualized basis and a yield of 1.1%. Analog Devices’s dividend payout ratio is currently 80.44%.

Insider Transactions at Analog Devices

In related news, CEO Vincent Roche sold 10,000 shares of the stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $397.91, for a total value of $3,979,100.00. Following the completion of the transaction, the chief executive officer owned 187,538 shares of the company’s stock, valued at approximately $74,623,245.58. This represents a 5.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michael Sondel sold 4,199 shares of the stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $361.02, for a total value of $1,515,922.98. Following the completion of the transaction, the chief accounting officer directly owned 14,740 shares of the company’s stock, valued at $5,321,434.80. This represents a 22.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 24,199 shares of company stock valued at $8,676,423 in the last three months. 0.36% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Groupe la Francaise lifted its holdings in Analog Devices by 175.0% during the 1st quarter. Groupe la Francaise now owns 102,054 shares of the semiconductor company’s stock worth $32,463,000 after buying an additional 64,947 shares during the last quarter. Liontrust Investment Partners LLP bought a new position in Analog Devices during the 1st quarter worth approximately $5,172,000. Arete Wealth Advisors LLC bought a new position in Analog Devices during the 1st quarter worth approximately $10,926,000. Front Row Advisors LLC lifted its holdings in Analog Devices by 0.4% during the 1st quarter. Front Row Advisors LLC now owns 12,235 shares of the semiconductor company’s stock worth $3,892,000 after buying an additional 50 shares during the last quarter. Finally, Western Wealth Management LLC lifted its holdings in Analog Devices by 60.0% during the 1st quarter. Western Wealth Management LLC now owns 2,729 shares of the semiconductor company’s stock worth $868,000 after buying an additional 1,023 shares during the last quarter. Institutional investors own 86.81% of the company’s stock.

About Analog Devices

Analog Devices, Inc (NASDAQ: ADI) is a multinational semiconductor company that designs, manufactures and markets a broad portfolio of analog, mixed-signal and digital signal processing integrated circuits. Founded in 1965 by Ray Stata and Matthew Lorber, the company has grown into a leading supplier of components that convert, condition and process real-world signals for electronic systems. Analog Devices is headquartered in Massachusetts and serves customers around the world across multiple end markets.

The company’s product lineup includes data converters (ADCs and DACs), amplifiers, power management ICs, radio-frequency (RF) and microwave components, sensors and MEMS devices, signal chain and isolation products, timing and clocking solutions, and embedded processors and software for system-level design.