Cirrus Logic (NASDAQ:CRUS) Shares Down 5.6% - Should You Sell?

Key Points

• Cirrus Logic's stock price declined by 5.6% during mid-day trading on Wednesday, falling to a low of $110.25, with a significant drop in trading volume compared to its average.
• The company reported earnings that exceeded expectations, with an EPS of $1.51 against an estimated $1.07, and a revenue of $407.27 million, demonstrating an 8.9% year-over-year increase.
• Wall Street analysts have mixed ratings on the stock, downgrading it from a "strong-buy" to a "buy," while maintaining an average price target of $121.00.

Cirrus Logic, Inc. (NASDAQ:CRUS - Get Free Report) traded down 5.6% on Wednesday . The stock traded as low as $110.25 and last traded at $109.88. 145,963 shares traded hands during trading, a decline of 77% from the average session volume of 627,874 shares. The stock had previously closed at $116.42.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Stifel Nicolaus upped their price objective on shares of Cirrus Logic from $120.00 to $130.00 and gave the company a "buy" rating in a report on Friday. Wall Street Zen cut shares of Cirrus Logic from a "strong-buy" rating to a "buy" rating in a report on Monday, August 11th. Four research analysts have rated the stock with a Buy rating and one has issued 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 target price of $123.00.

Cirrus Logic Price Performance

The firm has a market capitalization of $5.98 billion, a PE ratio of 18.24 and a beta of 1.02. The firm's fifty day moving average is $108.66 and its two-hundred day moving average is $102.41.

Cirrus Logic (NASDAQ:CRUS - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The semiconductor company reported $1.51 earnings per share for the quarter, topping the consensus estimate of $1.07 by $0.44. Cirrus Logic had a net margin of 18.15% and a return on equity of 18.38%. The business had revenue of $407.27 million for the quarter, compared to analysts' expectations of $361.97 million. During the same period in the previous year, the company earned $1.12 earnings per share. The firm's revenue for the quarter was up 8.9% compared to the same quarter last year. Cirrus Logic has set its Q2 2026 guidance at EPS. As a group, equities research analysts predict that Cirrus Logic, Inc. will post 5.63 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Jeffrey W. Baumgartner sold 10,000 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $111.78, for a total transaction of $1,117,800.00. Following the completion of the sale, the executive vice president owned 14,001 shares in the company, valued at approximately $1,565,031.78. This trade represents a 41.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 1.16% of the company's stock.

Institutional Trading of Cirrus Logic

A number of large investors have recently added to or reduced their stakes in the stock. Migdal Insurance & Financial Holdings Ltd. purchased a new stake in shares of Cirrus Logic during the 2nd quarter valued at approximately $39,000. Osaic Holdings Inc. grew its holdings in Cirrus Logic by 137.3% during the 2nd quarter. Osaic Holdings Inc. now owns 9,994 shares of the semiconductor company's stock valued at $1,039,000 after buying an additional 5,783 shares in the last quarter. Squarepoint Ops LLC grew its holdings in Cirrus Logic by 1,042.9% during the 2nd quarter. Squarepoint Ops LLC now owns 34,103 shares of the semiconductor company's stock valued at $3,555,000 after buying an additional 31,119 shares in the last quarter. Cim Investment Management Inc. grew its holdings in Cirrus Logic by 100.8% during the 2nd quarter. Cim Investment Management Inc. now owns 5,676 shares of the semiconductor company's stock valued at $578,000 after buying an additional 2,849 shares in the last quarter. Finally, Coppell Advisory Solutions LLC purchased a new position in Cirrus Logic during the 2nd quarter valued at about $2,025,000. Hedge funds and other institutional investors own 87.96% of the company's stock.

Cirrus Logic Company Profile

Cirrus Logic, Inc, a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems.