Cirrus Logic (NASDAQ:CRUS) Shares Down 5.6% - Here's What Happened

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)'s share price dropped 5.6% on Wednesday . The company traded as low as $110.25 and last traded at $109.88. Approximately 145,963 shares traded hands during trading, a decline of 77% from the average daily volume of 627,874 shares. The stock had previously closed at $116.42.

Wall Street Analyst Weigh In

CRUS has been the subject of several analyst reports. Stifel Nicolaus increased their price objective on Cirrus Logic from $120.00 to $130.00 and gave the company a "buy" rating in a report on Friday. Wall Street Zen lowered Cirrus Logic from a "strong-buy" rating to a "buy" rating in a report on Monday, August 11th. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Cirrus Logic has a consensus rating of "Moderate Buy" and an average target price of $123.00.

Cirrus Logic Stock Performance

The company has a market cap of $6.00 billion, a PE ratio of 18.28 and a beta of 1.02. The stock has a 50 day moving average of $108.66 and a 200-day moving average of $102.46.

Cirrus Logic (NASDAQ:CRUS - Get Free Report) last issued its earnings results on Tuesday, August 5th. The semiconductor company reported $1.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.07 by $0.44. The company had revenue of $407.27 million during the quarter, compared to analyst estimates of $361.97 million. Cirrus Logic had a return on equity of 18.38% and a net margin of 18.15%.The firm's quarterly revenue was up 8.9% on a year-over-year basis. During the same quarter last year, the business posted $1.12 EPS. Cirrus Logic has set its Q2 2026 guidance at EPS. Equities research analysts forecast that Cirrus Logic, Inc. will post 5.63 EPS for the current year.

Insider Activity

In other news, EVP Jeffrey W. Baumgartner sold 10,000 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $111.78, for a total value of $1,117,800.00. Following the completion of the transaction, the executive vice president owned 14,001 shares of the company's stock, valued at $1,565,031.78. The trade was a 41.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 1.16% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cirrus Logic

Several institutional investors and hedge funds have recently modified their holdings of the stock. Hantz Financial Services Inc. grew its position in shares of Cirrus Logic by 1,660.0% during the 2nd quarter. Hantz Financial Services Inc. now owns 264 shares of the semiconductor company's stock valued at $28,000 after acquiring an additional 249 shares during the period. Banque Cantonale Vaudoise acquired a new stake in shares of Cirrus Logic during the 1st quarter valued at about $30,000. RMG Wealth Management LLC acquired a new stake in shares of Cirrus Logic during the 2nd quarter valued at about $30,000. Ameritas Advisory Services LLC acquired a new stake in shares of Cirrus Logic during the 2nd quarter valued at about $31,000. Finally, Migdal Insurance & Financial Holdings Ltd. acquired a new stake in shares of Cirrus Logic during the 2nd quarter valued at about $39,000. Institutional investors and hedge funds 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.