Adeia (NASDAQ:ADEA) Shares Gap Down on Disappointing Earnings

Adeia Inc. (NASDAQ:ADEA) shares gapped down prior to trading on Monday following a dissappointing earnings announcement. The stock had previously closed at $17.04, but opened at $13.56. Adeia shares last traded at $13.7010, with a volume of 394,390 shares.

The company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.36 by ($0.15). Adeia had a net margin of 22.15% and a return on equity of 30.31%. Adeia has set its FY 2025 guidance at EPS.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on ADEA. Wall Street Zen downgraded shares of Adeia from a “buy” rating to a “hold” rating in a research report on Saturday, August 9th. Zacks Research cut Adeia from a “strong-buy” rating to a “hold” rating in a report on Monday, October 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of Adeia in a report on Wednesday, October 8th. Finally, BWS Financial restated a “buy” rating and set a $18.00 price objective on shares of Adeia in a research note on Monday, October 6th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $19.50.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Brooklyn Investment Group bought a new stake in shares of Adeia during the 1st quarter valued at about $44,000. GAMMA Investing LLC boosted its position in shares of Adeia by 80.9% during the 1st quarter. GAMMA Investing LLC now owns 3,603 shares of the company’s stock valued at $48,000 after acquiring an additional 1,611 shares during the last quarter. New York State Teachers Retirement System boosted its position in shares of Adeia by 9.6% during the 1st quarter. New York State Teachers Retirement System now owns 148,732 shares of the company’s stock valued at $1,966,000 after acquiring an additional 13,078 shares during the last quarter. Nisa Investment Advisors LLC boosted its position in shares of Adeia by 14.2% during the 1st quarter. Nisa Investment Advisors LLC now owns 8,565 shares of the company’s stock valued at $113,000 after acquiring an additional 1,062 shares during the last quarter. Finally, Invesco Ltd. lifted its position in Adeia by 122.2% in the 1st quarter. Invesco Ltd. now owns 961,356 shares of the company’s stock worth $12,709,000 after buying an additional 528,617 shares during the last quarter. Institutional investors own 97.36% of the company’s stock.

Adeia Stock Down 18.1%

The stock has a 50-day moving average of $16.35 and a two-hundred day moving average of $14.53. The company has a market cap of $1.53 billion, a P/E ratio of 18.76 and a beta of 1.74. The company has a debt-to-equity ratio of 1.06, a quick ratio of 3.09 and a current ratio of 3.09.

About Adeia

Adeia Inc, together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies.