Martin Cotter Takes Money Off The Table, Sells $3.08M In Analog Devices Stock

On September 8, a recent SEC filing unveiled that Martin Cotter, SVP at Analog Devices ADI made an insider sell.

What Happened: After conducting a thorough analysis, Cotter sold 12,500 shares of Analog Devices. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total transaction value is $3,078,092.

Monitoring the market, Analog Devices's shares down by 0.01% at $248.95 during Tuesday's morning.

About Analog Devices

Analog Devices is a leading analog, mixed-signal, and digital-signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers; more than half of its chip sales are to industrial and automotive end markets. ADI's chips are also incorporated into wireless infrastructure equipment.

Analog Devices: Financial Performance Dissected

Revenue Growth: Analog Devices's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2025, the company achieved a revenue growth rate of approximately 24.57%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: The company sets a benchmark with a high gross margin of 62.14%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Analog Devices's EPS is below the industry average. The company faced challenges with a current EPS of 1.05. This suggests a potential decline in earnings.

Debt Management: With a below-average debt-to-equity ratio of 0.25, Analog Devices adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The P/E ratio of 63.35 is lower than the industry average, implying a discounted valuation for Analog Devices's stock.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 11.94, Analog Devices's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 27.3, Analog Devices's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Essential Transaction Codes Unveiled

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Analog Devices's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.