Cirrus Logic (NASDAQ:CRUS) Sets New 12-Month High - Time to Buy?

Key Points

• Cirrus Logic hit a new 52-week high of $171.03 (last $169.77) and several brokers have raised price targets — Stifel and KeyCorp to $175 — though the MarketBeat consensus remains a "Moderate Buy" with an average target of $152.14.
• The company posted a quarterly earnings beat — EPS $2.97 vs. $2.37 estimate and revenue $580.6M vs. $531.4M — with a 20.5% net margin, a market cap of ~$8.66B and a P/E of 22.37, underpinning recent momentum.
• Insiders have been net sellers recently (EVP Scott Thomas sold 9,942 shares under a Rule 10b5-1 plan; total insider sales ~37,987 shares worth $5.43M) even as institutional investors hold roughly 88% of the stock.

Cirrus Logic, Inc. (NASDAQ:CRUS - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $171.03 and last traded at $169.77, with a volume of 810767 shares changing hands. The stock had previously closed at $168.38.

Analysts Set New Price Targets

Several brokerages have issued reports on CRUS. Stifel Nicolaus increased their price objective on shares of Cirrus Logic from $163.00 to $175.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. Barclays increased their price objective on shares of Cirrus Logic from $110.00 to $120.00 and gave the company an "equal weight" rating in a research report on Tuesday, March 3rd. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Cirrus Logic in a research report on Friday, March 27th. Loop Capital downgraded shares of Cirrus Logic from a "buy" rating to a "hold" rating and set a $130.00 price objective for the company. in a research report on Monday, February 2nd. Finally, KeyCorp increased their price objective on shares of Cirrus Logic from $150.00 to $175.00 and gave the company an "overweight" rating in a research report on Monday, April 6th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $152.14.

Cirrus Logic Price Performance

The firm has a market cap of $8.66 billion, a price-to-earnings ratio of 22.37 and a beta of 1.08. The business's 50-day moving average price is $145.10 and its two-hundred day moving average price is $131.67.

Cirrus Logic (NASDAQ:CRUS - Get Free Report) last released its quarterly earnings results on Tuesday, February 3rd. The semiconductor company reported $2.97 earnings per share for the quarter, topping analysts' consensus estimates of $2.37 by $0.60. Cirrus Logic had a net margin of 20.47% and a return on equity of 20.41%. The business had revenue of $580.62 million during the quarter, compared to the consensus estimate of $531.43 million. During the same quarter last year, the company earned $2.51 earnings per share. The business's quarterly revenue was up 4.5% compared to the same quarter last year. Equities analysts predict that Cirrus Logic, Inc. will post 7.76 earnings per share for the current fiscal year.

Insider Transactions at Cirrus Logic

In other news, EVP Scott Thomas sold 9,942 shares of the firm's stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $160.11, for a total transaction of $1,591,813.62. Following the completion of the sale, the executive vice president owned 30,393 shares of the company's stock, valued at approximately $4,866,223.23. This trade represents a 24.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Justin E. Dougherty sold 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $143.16, for a total transaction of $429,480.00. Following the sale, the executive vice president directly owned 5,876 shares of the company's stock, valued at $841,208.16. The trade was a 33.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 37,987 shares of company stock valued at $5,427,114. 1.16% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Cirrus Logic

Hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd boosted its holdings in Cirrus Logic by 7,333.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 223 shares of the semiconductor company's stock worth $26,000 after purchasing an additional 220 shares during the period. Kohmann Bosshard Financial Services LLC acquired a new position in Cirrus Logic in the fourth quarter worth $33,000. Torren Management LLC acquired a new position in Cirrus Logic in the fourth quarter worth $35,000. Kestra Advisory Services LLC acquired a new position in Cirrus Logic in the fourth quarter worth $36,000. Finally, Abich Financial Wealth Management LLC acquired a new position in Cirrus Logic in the third quarter worth $46,000. Institutional investors and hedge funds own 87.96% of the company's stock.

About Cirrus Logic

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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