Analog Devices, Inc. (ADI)

Analog Devices stock forecast: buy or sell

Analog Devices stock outlook

  • Analog Devices stock inched 1.13% to close at $124.25 on the stock market today.
  • Analog Devices, Inc. designs, manufactures, and markets integrated circuits (ICs), algorithms, software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies.
No ad for you

Disclaimer:
The viewpoints expressed in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this text does not have any knowledge of the individual conditions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for education purposes only

Analog Devices stock chart overview

Should I buy Analog Devices stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is ADI stock a buy?

Currently, Analog Devices stock matches one trading strategy:

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that shares price doesn't struggle with upper resistances, and usually it rises quickly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Analog Devices can break to all-time highs any time soon, as it only needs to rise a 2.53%. Setup your buy order at $127.39 if you want to trade with this strategy. Place your stop-loss at $114.65

Buy setupBuy pointStop lossRisk
ATH buy setup$127.39$114.6510%
No ad for you

Should I sell Analog Devices stock?

When is it time to sell Analog Devices stock?. Similarly to when we have to buy shares, choosing when is appropiate to sell is not a whimsical decision, and we must adhere our own trading style. We like very simple strategies to guide us on when is the best time to sell a stock. Be aware that these strategies should not be used for selling short Analog Devices stock

As a golden rule, you should never hold an open trade that yields higher than expected losses at the time of purchase. When to sell your stock always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Analog Devices stock?

Currently, Analog Devices stock doesn't match any of our preferred sell setups, so if you hold Analog Devices shares and your operation is in profit probably is not time to sell now

No ad for you

Analysts' recommendations to buy or sell Analog Devices stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one brokerage rating was published for Analog Devices

No ad for you

Analog Devices ratings

Brokerage firmRating
Jun 16th, 2020
Morgan Stanley

Technical analysis

SMAs overview

Moving averages are simple tools for traders to detect stock direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Technical analysts use support and resistance levels to identify price points on a chart that may behave as glass ceiling, containing the price of a stock to move up or down. A support level is a level where the price may stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until meeting another support level. On the contrary, resistance levels are where the price tends to find opposition as it rises. In the same way, this means that the price is more liable to "rebound" at this level, and if it finally crosses this level, it will climb easily until it hits the next resistance

The current resistances are:

  • R1: $125.93 (1.35% above)
  • The current support levels are:

  • S1: $122.25 (-1.61% below)
  • S2: $120.88 (-2.71% below)
  • S3: $119.35 (-3.94% below)
  • Bollinger bands

    So-called Bollinger bands are a widely known technical strategy that was created by John Bollinger. It is made up of 3 bands that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    The price is moving near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell point, as price can trade in these levels for many days and weeks

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that track price movements to spot when the price of a share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in the late 1970s

    When the Relative Strength Indicator stays for so long below 70 and above 30, without indicating moments of overbought and oversold, the indicator becomes of little use, and we are currently in such a case.

    No ad for you

    Earnings and financials

    Analog Devices, Inc. (ADI) came out with 2nd-quarter earnings of $1.08 per share, slightly beating the Wall St consensus estimate of $1.03 per share. This quarterly report means an earnings surprise of 4.85%. On the contrary, the company said revenue for this quarter was $1.3 billion aligned with analysts' forecasts.

    Same quarter last year, reported EPS was $1.36, so recently reported EPS means a decrease of -20.59%. Turnover dropped a -13.73% on an annualized basis in the 2nd-quarter, from $1.5B to $1.3B last quarter.

    Analog Devices presents financial report on mid next August. Forecasted earnings of %s per-share for this quarter is $1.08. Financial reporting day has a more than usual risk for stock investors as the results disclosed can gap up or down the shares price with very low volume and not respecting your buy/stop-loss orders. You can probably find more details about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.analog.com.

    No ad for you