Analog Story

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ADI -- USA Stock  

USD 113.48  3.58  3.06%

The essential intention for this outlook is to break down our current position on Analog for stockholders considering to short it. We will examine why Analog Devices stockholders may still consider a stake in the business.
Published over a month ago
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Our projection for Analog Devices (NASDAQ:ADI) in September
This firm has a beta of 0.8154. Let's try to break down what Analog's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Analog Devices will likely underperform. The beta indicator helps investors understand whether Analog Devices moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Analog deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Analog Devices. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Analog Devices


How important is Analog Devices's Liquidity

Analog Devices financial leverage refers to using borrowed capital as a funding source to finance Analog Devices ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Analog Devices financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Analog Devices's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Analog Devices, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Greg Henderson of 1948 shares of Analog Devices subject to Rule 16b-3

Legal trades by Analog Devices insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Analog insider trading alert for exercise of non-qualified stock option (right to buy) by Greg Henderson, SVP Atmtve Comm ArSpc & Def, on 28th of September 2020. This event was filed by Analog Devices Inc with SEC on 2020-09-28. Statement of changes in beneficial ownership - SEC Form 4. Greg Henderson currently serves as senior vice president - automotive, communications and aerospace & defense of Analog Devices [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Analog

The modest gains experienced by current holders of Analog Devices could raise concerns from stockholders as the firm closed today at a share price of 117.19 on 5,718,013 in volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.89. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Margin Breakdown

Operating Margin29.38
EBITDA Margin0.37
Gross Margin0.71
Profit Margin0.23

Analog technical analysis implies possible correction

Current skewness is at 0.32. Analog Devices currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.08. However, we do advice investors to further question Analog Devices expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on Analog Devices Investment

While other entities under the semiconductors industry are still a bit expensive, Analog Devices may offer a potential longer-term growth to stockholders. With an optimistic outlook on your 30 days horizon, it may be a good time to trade new shares of Analog or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Analog Devices.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Analog Devices. Please refer to our Terms of Use for any information regarding our disclosure principles.

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