Cirrus Logic (NASDAQ:CRUS) Hits New 12-Month High - Still a Buy?

Key Points

• Cirrus Logic hit a new 52-week high, trading as high as $180.42, after a strong recent run in the stock price.
• The company’s latest quarterly results beat expectations, with EPS of $1.95 versus the $1.76 estimate and revenue of $448.5 million, up 5.7% year over year.
• Analyst sentiment is mixed but broadly positive: the stock has a Moderate Buy consensus with an average target price of $161.71, while insiders have recently sold shares.

Cirrus Logic, Inc. (NASDAQ:CRUS - Get Free Report) reached a new 52-week high during trading on Wednesday . The stock traded as high as $180.42 and last traded at $176.0920, with a volume of 14381 shares trading hands. The stock had previously closed at $178.30.

Wall Street Analyst Weigh In

CRUS has been the subject of a number of recent research reports. Zacks Research downgraded Cirrus Logic from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. Barclays boosted their price objective on shares of Cirrus Logic from $120.00 to $140.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 7th. Stifel Nicolaus set a $197.00 target price on shares of Cirrus Logic in a research report on Thursday, May 7th. Weiss Ratings reissued a "hold (c+)" rating on shares of Cirrus Logic in a research report on Friday, March 27th. Finally, Benchmark increased their price objective on shares of Cirrus Logic from $150.00 to $160.00 and gave the stock a "buy" rating in a research note on Wednesday, February 4th. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, Cirrus Logic presently has a consensus rating of "Moderate Buy" and an average target price of $161.71.

Cirrus Logic Stock Performance

The company has a market cap of $8.83 billion, a price-to-earnings ratio of 22.21 and a beta of 1.16. The firm has a fifty day moving average price of $157.91 and a 200 day moving average price of $138.20.

Cirrus Logic (NASDAQ:CRUS - Get Free Report) last issued its earnings results on Wednesday, May 6th. The semiconductor company reported $1.95 earnings per share for the quarter, topping analysts' consensus estimates of $1.76 by $0.19. Cirrus Logic had a net margin of 20.75% and a return on equity of 20.48%. The business had revenue of $448.52 million for the quarter, compared to the consensus estimate of $442.26 million. During the same period in the previous year, the company earned $1.67 earnings per share. The firm's revenue for the quarter was up 5.7% on a year-over-year basis. On average, analysts expect that Cirrus Logic, Inc. will post 8.01 EPS for the current fiscal year.

Insider Activity

In related news, EVP Scott Thomas sold 9,942 shares of the firm's stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $160.11, for a total value of $1,591,813.62. Following the completion of the sale, the executive vice president directly owned 30,393 shares in the company, valued at approximately $4,866,223.23. This trade represents a 24.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Justin E. Dougherty sold 2,000 shares of Cirrus Logic stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $166.50, for a total value of $333,000.00. Following the transaction, the executive vice president owned 4,537 shares of the company's stock, valued at $755,410.50. The trade was a 30.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 17,942 shares of company stock valued at $2,935,864 over the last quarter. 1.16% of the stock is currently owned by company insiders.

Institutional Trading of Cirrus Logic

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in shares of Cirrus Logic by 4.2% during the 3rd quarter. Vanguard Group Inc. now owns 6,622,431 shares of the semiconductor company's stock worth $829,724,000 after acquiring an additional 268,560 shares during the last quarter. LSV Asset Management lifted its holdings in Cirrus Logic by 1.0% during the 4th quarter. LSV Asset Management now owns 2,356,245 shares of the semiconductor company's stock valued at $279,215,000 after purchasing an additional 23,703 shares during the last quarter. Fuller & Thaler Asset Management Inc. boosted its position in Cirrus Logic by 0.7% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 1,578,555 shares of the semiconductor company's stock worth $187,059,000 after purchasing an additional 11,307 shares during the period. Earnest Partners LLC increased its holdings in shares of Cirrus Logic by 0.8% in the third quarter. Earnest Partners LLC now owns 1,348,710 shares of the semiconductor company's stock valued at $168,980,000 after purchasing an additional 10,750 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Cirrus Logic by 6.7% in the first quarter. Dimensional Fund Advisors LP now owns 1,328,155 shares of the semiconductor company's stock valued at $192,055,000 after purchasing an additional 83,897 shares during the last quarter. 87.96% of the stock is owned by institutional investors and hedge funds.

Cirrus Logic Company Profile

Cirrus Logic, Inc, headquartered in Austin, Texas, is a fabless semiconductor company specializing in high-precision analog and mixed-signal processing solutions. The firm develops low-power, high-performance audio, voice, and power management integrated circuits, serving prominent consumer electronics OEMs. Its semiconductor devices are designed to enhance audio quality, battery life, and system integration in mobile phones, tablets, wireless headsets and other portable devices.

The company's product portfolio includes digital-to-analog converters (DACs), analog-to-digital converters (ADCs), audio codecs, power management ICs, voice processors and integrated amplifiers.

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