Is Analog Devices (ADI) a Cyclical Stock? - InvestingChannel

Is Analog Devices (ADI) a Cyclical Stock?

Investment management company First Pacific Advisors recently released its “FPA Crescent Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund (Institutional Class) returned 5.76% in the first quarter but declined 0.91% in the trailing twelve months. The fund’s top five performers contributed 4.56% to its return in the last twelve months, while its bottom five performers detracted 4.37%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

FPA Crescent Fund highlighted stocks like Analog Devices, Inc. (NASDAQ:ADI) in the first quarter 2023 investor letter. Headquartered in Wilmington, Massachusetts, Analog Devices, Inc. (NASDAQ:ADI) is a semiconductor company that designs and manufactures integrated circuits (ICs), software, and subsystems. On May 16, 2023, Analog Devices, Inc. (NASDAQ:ADI) stock closed at $182.79 per share. One-month return of Analog Devices, Inc. (NASDAQ:ADI) was -3.05%, and its shares gained 14.30% of their value over the last 52 weeks. Analog Devices, Inc. (NASDAQ:ADI) has a market capitalization of $92.905 billion.

FPA Crescent Fund made the following comment about Analog Devices, Inc. (NASDAQ:ADI) in its Q1 2023 investor letter:

“Analog Devices, Inc. (NASDAQ:ADI) stock price declined in the first half of 2022, along with its semiconductor peers. That sector has since rebounded, lifting ADI with it. We believe ADI is a well-run company and a secular grower, which should augur well for its future. However, given that it operates in a cyclical industry, we will not be surprised when its shares periodically trade down.”

microchip, system, background Photo by L N on Unsplash

Analog Devices, Inc. (NASDAQ:ADI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held Analog Devices, Inc. (NASDAQ:ADI) at the end of the fourth quarter which was 66 in the previous quarter.

We discussed Analog Devices, Inc. (NASDAQ:ADI) in another article and shared the list of best engineering stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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