For most investors, the -2.4% change in Analog Devices, Inc., (ADI) could have prompted them to sell the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. The stock closed August 14, 2019 trading at $110.31 which saw downtrend of 28.52% since the beginning of 2019. The price of the stock has risen by 4.66% from average 12-month price target of $115.45 expected by the analysts. Most analysts believed that the stock has the potential to rise by 22.38% or more. For Analog Devices, Inc. to record further gain analysts believe that the company has to hit $135 price target. The high price target for ADI for next 12 months currently stands at $135. This means that the highest 12 months price target is 22.38% above its last closing price. The median price target for the stock over the next 12 months is $116, which means that it could rise by 5.16% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $90 for the stock which means it could rise by -18.41%.
A look at the ADI stock today shows that it has gained 15.96% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of Analog Devices, Inc. (NASDAQ:ADI). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for Analog Devices, Inc. (ADI) is 2.2 which is a ,neutral rating. Over the past week, the stock has been rated as a Buy 12 times while it has been rated as a Hold 10 times. The 52-week high price for ADI is $124.79 which is attained on July 24 while its 52-week low currently stands at $76.62 and was reached on October 26. At the moment, the stock is trading $3.76 above its YTD moving average set at $106.55.
Moving on, Analog Devices, Inc. (ADI) last released its earnings for the April 2019 quarter of the fiscal year. The company performed lower over the past three months, with its earnings down -6% year-over-year at $1.36. The company brought a surprise of 5 as analysts were predicting $1.3 per share. The revenue generated by Analog Devices, Inc. in the April 2019 quarter surged by 1% to reach $1.53 billion. This is high compared to the $1.51 billion it recorded in the same quarter last year. To see what traders should watch in its July 2019 financial results, analysts have consensus earnings per share of $1.22 which is lower than the $1.53 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 5.74%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 9.34 % could be achieved. The company has also recorded a revenue of $6.24 billion over the past 12 months.
In order to determine if the stock is worthy of your patience, you should know that Analog Devices, Inc. (NASDAQ:ADI) is now trading at 26.28X the earnings per share recorded over the past 12 months. This is an uptrend compared to the readings of the sector which is 15.87X while the industry average stands at 9.71X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Analog Devices, Inc. was able to achieve an EPS of $4.2 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.
On Wednesday, August 14 of 2019, the 14-day Absolute ATR (Average True Range) for ADI moved by $3.17. Over the past seven days, the stock’s average daily volatility stood at 2.77%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Analog Devices, Inc.’s trading volume has recently moved to 1.81 million, which is compared with the average daily volume of 2.58 million shares.
The daily chart for ADI, points out that the company has recorded 5.64% gains over the past six months. However, it is still 43.97% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 0.45% though it is -4.51% below its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has dropped by -1.62% while it is up 8.05% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of ADI reveals that it has lost some grounds as it ended Wednesday with a -4.46% fall over the past 30 days.