Analog Devices Inc. ADI Stock Analysis

Analog Devices, Inc. stock specializes in the design & manufacturing of integrated circuits; trading under the ticker ADI.

ADI stock has recently shown strong technical performance, making it worth taking a closer look at for a trade & investment opportunity.

Analog Devices Inc. ADI Stock Technical Performance

Analog Devices Inc. ADI Stock Technical Performance Over The Last Year

ADI Stock Price: $168.81

10 Day Moving-Average: $164.57

50 Day Moving-Average: $165.82

200 Day Moving-Average: $156.03

RSI: 56.95

MACD: -0.505

Yesterday, ADI stock completed a bullish MACD crossover, while their price broke out above both the 10 Day & 50 Day Moving-Averages.

ADI’s volume in the past few weeks is above average for the rest of the year, with more positive momentum set to come from the crossing of the 10 Day MA & 50 Day MA.

I will be watching the $169.63 level, as if they break above that the price should continue climbing until it tests $172.16.

With an RSI still below 60 traders will still be encouraged to buy, as there is still room to climb until the stock is considered overbought.

Analog Devices Inc ADI Stock As A Long-Term Investment

ADI stock’s P/E(ttm) is 36.9, which some investors may think to be a bit high, and their P/B is 7.4.

Analog Devices Inc. stock offers a 1.64% Dividend Yield, that looks stable with a Payout Ratio of 57%.

While that Payout Ratio is a bit high (typically <50% is ideal), the yield looks to be safe.

Institutional Investors are quite fond of ADI stock & compared to many other stocks we look at their Debt vs. Cash levels are ok, although they still have less Total Cash (mrq) vs. Total Debt (mrq) ($1.48B vs. $5.33B).

Analog Devices Inc. ADI Stock As A Short-Term Trade With Options

Short-term traders may be interested in ADI’s recent momentum.

I am looking at the 10/15 expiration date, with my eyes on the $165 & $170 strike price on the call options.

While the $170 calls are out-of-the-money, there is ~2X the open interest, making them very liquid compared to the $165’s.

There seems to be more bullish sentiment than bearish for ADI stock, as the open interest on the puts is much less, even for the in-the-money options (most likely being used as hedges for long positions.)

Tying It All Together

Overall, there seem to be a lot of opportunities for ADI stock that investors & traders alike can take advantage of.

From the long-term perspective, Analog Devices Inc. stock looks to be healthy, with a small, but safe dividend for investors to collect.

In the near-term, there looks to be momentum that can continue pushing ADI’s share price higher.

ADI stock is worth taking a closer look at, no matter what your time horizon is in the markets.


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