BUY, SELL, HOLD (2)

Analyst: This Apple Supplier Can Surge 23%

ADI stock hit a record high last week

Apr 30, 2019 at 3:02 PM
facebook X logo linkedin


RBC initiated coverage on Analog Devices, Inc. (NASDAQ:ADI) with an "outperform" rating and $140 price target, a 22.9% premium to last night's close. The analyst in coverage called the semiconductor name the "5G Analog asset of choice," and expects its communications segment to outperform through next year.

In reaction, ADI stock is up 2.3% at $116.52, putting shares of the Apple supplier within a chip-shot of their April 24 record high of $118.54. More broadly, the equity is pacing for an April gain of almost 11%, and has surged 35% so far in 2019.

analog devices stock daily price chart april 30

Analysts are split when it comes to the outperforming tech stock, though. At last night's close, nine brokerages maintained a "strong buy" rating on ADI, compared to 10 "holds," and not a single "sell." Meanwhile, the average 12-month price target of $117.61 is in line with Analog Devices' current perch.

Options traders, on the other hand, have taken a distinctly bullish stance toward ADI. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 2.16 ranks in the 74th annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

With Analog Devices earnings scheduled for release the morning of Wednesday, May 22, it's getting a little pricier to purchase premium on short-term options, from a volatility standpoint. ADI's 30-day at-the-money implied volatility was last seen at 28.4%, which registers in the elevated 73rd annual percentile.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!