Cirrus Logic (NASDAQ:CRUS) Stock Price Down 9.5% - What's Next?

Key Points

• Cirrus Logic's stock price dropped by 9.5% during trading on Wednesday, closing at $95.03 after falling as low as $92.04.
• Despite the recent decline, analysts have a consensus rating of "Buy" with a target price around $128.33, indicating potential for recovery.
• The company has authorized a $500 million share buyback, suggesting management believes the stock is undervalued.

Shares of Cirrus Logic, Inc. (NASDAQ:CRUS - Get Free Report) fell 9.5% during trading on Wednesday . The stock traded as low as $92.04 and last traded at $95.03. 257,378 shares changed hands during mid-day trading, a decline of 60% from the average session volume of 636,442 shares. The stock had previously closed at $104.97.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on CRUS shares. Barclays lifted their price target on shares of Cirrus Logic from $80.00 to $90.00 and gave the company an "equal weight" rating in a report on Wednesday, May 7th. Wall Street Zen raised shares of Cirrus Logic from a "buy" rating to a "strong-buy" rating in a report on Sunday. Finally, Stifel Nicolaus set a $120.00 target price on shares of Cirrus Logic in a report on Wednesday, May 7th. One investment analyst has rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $128.33.

Cirrus Logic Stock Down 7.3%

The business's 50-day simple moving average is $103.88 and its 200 day simple moving average is $100.88. The firm has a market capitalization of $4.99 billion, a P/E ratio of 16.33 and a beta of 0.92.

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, beating the consensus estimate of $1.07 by $0.44. Cirrus Logic had a net margin of 17.48% and a return on equity of 17.66%. The business had revenue of $407.27 million for the quarter, compared to analysts' expectations of $361.97 million. During the same quarter in the previous year, the business posted $1.12 earnings per share. The firm's revenue for the quarter was up 8.9% compared to the same quarter last year. Sell-side analysts predict that Cirrus Logic, Inc. will post 5.63 earnings per share for the current year.

Cirrus Logic declared that its Board of Directors has initiated a share buyback plan on Tuesday, May 6th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the semiconductor company to purchase up to 9.6% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Activity at Cirrus Logic

In other news, EVP Carl Jackson Alberty sold 2,000 shares of the company's stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $100.00, for a total transaction of $200,000.00. Following the sale, the executive vice president directly owned 41,645 shares of the company's stock, valued at $4,164,500. This represents a 4.58% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Alexander M. Davern sold 1,000 shares of the stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $105.62, for a total value of $105,620.00. Following the sale, the director owned 20,907 shares in the company, valued at $2,208,197.34. The trade was a 4.56% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 13,000 shares of company stock worth $1,305,620. 1.16% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cirrus Logic

Institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp raised its stake in shares of Cirrus Logic by 1.8% in the second quarter. Bank of New York Mellon Corp now owns 443,797 shares of the semiconductor company's stock worth $46,268,000 after purchasing an additional 7,650 shares during the last quarter. Burney Co. grew its holdings in Cirrus Logic by 733.6% in the second quarter. Burney Co. now owns 91,775 shares of the semiconductor company's stock valued at $9,568,000 after purchasing an additional 80,765 shares during the period. Versor Investments LP grew its holdings in Cirrus Logic by 245.8% in the second quarter. Versor Investments LP now owns 11,065 shares of the semiconductor company's stock valued at $1,154,000 after purchasing an additional 7,865 shares during the period. Simon Quick Advisors LLC grew its holdings in Cirrus Logic by 70.3% in the second quarter. Simon Quick Advisors LLC now owns 6,642 shares of the semiconductor company's stock valued at $692,000 after purchasing an additional 2,742 shares during the period. Finally, Impact Partnership Wealth LLC boosted its stake in shares of Cirrus Logic by 27.0% in the second quarter. Impact Partnership Wealth LLC now owns 2,563 shares of the semiconductor company's stock worth $267,000 after acquiring an additional 545 shares during the last quarter. 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.

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