Analog Devices Boosts Buyback Plan By $1 Billion

Analog Devices (ADI) Thursday announced plans to increase its share repurchase plan by $1 billion, increasing its current authorization to $1.4 billion. That represents nearly 12% of the company’s current $11.9 billion market cap.

It’s also a good chunk of the company’s $1.8 billion in cash and short-term investments. So is the Street impressed? Heck, no.

For analog chip stocks, almost all of whom carry big piles of cash on the balance sheet, the buyback bar was set high by Linear Technology (LLTC), which recently announced that it is buying back 30% of its stock, a move financed in part by $1.7 billion in convertible debt. All Analog is doing is spending cash on hand. The Street wants more.

Ergo, Analog shares Thursday are down 13 cents at $36.46.

ADI 1-yr chart: