Analog Devices (NASDAQ:ADI) Shares Gap Down – Time to Sell?

Analog Devices, Inc. (NASDAQ:ADI)’s share price gapped down before the market opened 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.

Key Stories Impacting Analog Devices

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

• Positive Sentiment: Analog Devices reported better-than-expected fiscal Q2 results, with EPS of $3.09 and revenue of $3.62 billion, both ahead of estimates, while revenue rose sharply year over year. Analog Devices Reports Record Fiscal Second Quarter 2026 Financial Results
• Positive Sentiment: The company issued upbeat fiscal Q3 guidance, calling for revenue of about $3.8 billion to $4.0 billion and EPS of $3.15 to $3.45, both above Wall Street expectations. Reuters article
• Positive Sentiment: ADI also said demand remains strong in AI-related power management and sensor products, supporting the growth narrative for its semiconductor business. Benzinga article
• Neutral Sentiment: The company announced a $1.5 billion all-cash acquisition of Empower Semiconductor to strengthen its AI power-delivery portfolio; while strategic, the deal may raise questions about integration risk and capital deployment. Reuters article
• Negative Sentiment: Despite the strong earnings beat, the stock appears to be facing a “sell-the-news” pullback after a significant run-up ahead of earnings, with investors locking in gains. Quiver Quantitative article

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on ADI shares. UBS Group raised their price target on shares of Analog Devices from $400.00 to $430.00 and gave the stock a “buy” rating in a research note on Thursday, February 19th. Benchmark raised their price target on shares of Analog Devices from $285.00 to $400.00 and gave the stock a “buy” rating in a research note on Thursday, February 19th. Bank of America raised their price target on shares of Analog Devices from $400.00 to $425.00 and gave the stock a “buy” rating in a research note on Monday, April 13th. Cantor Fitzgerald raised their price target on shares of Analog Devices from $400.00 to $510.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 13th. Finally, JPMorgan Chase & Co. raised their price target on shares of Analog Devices from $320.00 to $400.00 and gave the stock an “overweight” rating in a research note on Thursday, February 19th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $381.27.

Analog Devices Stock Performance

The firm has a market capitalization of $187.86 billion, a PE ratio of 70.55, a price-to-earnings-growth ratio of 1.68 and a beta of 1.19. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.35 and a current ratio of 1.76. The company’s fifty day moving average price is $357.19 and its two-hundred day moving average price is $313.00.

Analog Devices (NASDAQ:ADI) last announced its quarterly earnings data on Wednesday, May 20th. The semiconductor company reported $3.09 earnings per share for the quarter, topping the consensus estimate of $2.89 by $0.20. The business had revenue of $3.62 billion for the quarter, compared to analyst estimates of $3.51 billion. Analog Devices had a net margin of 23.02% and a return on equity of 12.49%. The company’s revenue was up 37.2% on a year-over-year basis. During the same period in the prior year, the firm posted $1.85 EPS. Analog Devices has set its Q3 2026 guidance at 3.150-3.450 EPS. As a group, equities analysts expect that Analog Devices, Inc. will post 11.35 earnings per share for the current year.

Insider Activity

In related news, CAO Michael Sondel sold 4,199 shares of the firm’s stock in a transaction that occurred on 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 transaction, the chief accounting officer owned 14,740 shares in the company, valued at approximately $5,321,434.80. This trade represents a 22.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Vincent Roche sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $397.91, for a total transaction of $3,979,100.00. Following the completion of the transaction, the chief executive officer owned 187,538 shares in the company, valued at $74,623,245.58. The trade was a 5.06% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 24,199 shares of company stock worth $8,676,423. Insiders own 0.36% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Jones Financial Companies Lllp raised its stake in shares of Analog Devices by 12.9% during the third quarter. Jones Financial Companies Lllp now owns 169,572 shares of the semiconductor company’s stock valued at $41,907,000 after purchasing an additional 19,383 shares during the period. Nordea Investment Management AB raised its stake in shares of Analog Devices by 247.3% during the fourth quarter. Nordea Investment Management AB now owns 350,692 shares of the semiconductor company’s stock valued at $95,802,000 after purchasing an additional 249,702 shares during the period. Ashton Thomas Private Wealth LLC raised its stake in shares of Analog Devices by 18.8% during the third quarter. Ashton Thomas Private Wealth LLC now owns 20,734 shares of the semiconductor company’s stock valued at $5,094,000 after purchasing an additional 3,286 shares during the period. AE Wealth Management LLC raised its stake in shares of Analog Devices by 26.4% during the third quarter. AE Wealth Management LLC now owns 43,932 shares of the semiconductor company’s stock valued at $10,795,000 after purchasing an additional 9,174 shares during the period. Finally, National Pension Service raised its stake in shares of Analog Devices by 1.8% during the third quarter. National Pension Service now owns 1,347,535 shares of the semiconductor company’s stock valued at $331,089,000 after purchasing an additional 24,392 shares during the period. Hedge funds and other 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.