Analog Devices Trading Volume Drops 31% but Ranks 95th in Daily Volume

On May 13, 2025, Analog Devices (ADI) saw a trading volume of $976 million, marking a 31.04% decrease from the previous day. The stock ranked 95th in terms of trading volume for the day, with a 1.58% increase, marking its fifth consecutive day of gains and a 15.89% rise over the past five days.

UBS has adjusted its price target for Analog Devices, reducing it from $300 to $295. Despite this revision, the investment firm maintains its Buy rating on the stock, reflecting continued optimism about its potential performance. This update highlights UBS's confidence in Analog Devices' ability to navigate current market conditions effectively, even with a slightly lower price target.

Analog Devices reported first-quarter revenue of $2.42 billion, a 1% sequential decrease and a 4% decline year-over-year. Industrial revenue accounted for 44% of total revenue, up 1% sequentially. Automotive revenue was 30% of total revenue, up 2% sequentially. Communications revenue was 12% of total revenue, up 6% sequentially. Consumer revenue was 13% of total revenue, down 15% sequentially. The company's gross margin was 68.8%, up 90 basis points sequentially, with an operating margin of 40.5%. Adjusted EPS was $1.63. Cash and short-term investments totaled $2.7 billion, with a net leverage ratio of 1.1. Inventory increased by $27 million sequentially, with days of inventory at 176. Operating cash flow (TTM) was $3.8 billion, with CapEx (TTM) at $656 million. Free cash flow (TTM) was $3.2 billion or 34% of revenue. The company increased its dividend by 8% to $0.99 per share and authorized an additional $10 billion for share repurchase, totaling $11.5 billion available. For the second quarter, ADI guided for revenue of $2.5 billion, plus or minus $100 million, and adjusted EPS of $1.68, plus or minus $0.10.

Analog Devices reported first-quarter revenue, profitability, and earnings per share above the midpoint of their outlook. The company increased its dividend for the 21st consecutive year, highlighting a strong capital return program. ADI is well-positioned for sustained recovery in the semiconductor cycle, with normalized inventory levels and improved customer engagements. The company anticipates double-digit growth in several sectors, including industrial automation, surgical robotics, and automotive. ADI's hybrid manufacturing model and strategic investments have enhanced their ability to meet dynamic customer needs and support growth. Despite positive results, ADI continues to operate in a challenging macro and geopolitical environment. The company experienced a 4% year-over-year revenue decline in the first quarter, adjusting for an extra week in fiscal Q1 2024. Consumer revenue was down 15% sequentially, reflecting seasonal latency. Wireless revenue continues to face demand challenges, impacting the communications segment. The macroeconomic environment remains uncertain, which could influence the pace of ADI's recovery and growth.