Cirrus Logic (NASDAQ:CRUS) Trading Down 5.9% - Should You Sell?

Key Points

• Cirrus Logic shares fell 5.9% on Tuesday, trading as low as $137.72 on lighter-than-average volume, after previously closing at $146.51.
• Analysts remain mixed on the stock: recent moves included a Jefferies upgrade to buy, while Zacks cut its view to hold. The consensus rating is still Moderate Buy, with an average price target of $160.29.
• The company recently reported better-than-expected quarterly results, with EPS of $1.95 versus $1.76 expected and revenue up 5.7% year over year. Despite the pullback, the business remains profitable with strong margins and analyst forecasts of $8.05 EPS for the current fiscal year.

Cirrus Logic, Inc. (NASDAQ:CRUS - Get Free Report)'s stock price was down 5.9% on Tuesday . The stock traded as low as $137.72 and last traded at $137.8850. Approximately 494,027 shares traded hands during trading, a decline of 22% from the average session volume of 630,916 shares. The stock had previously closed at $146.51.

Analysts Set New Price Targets

CRUS has been the subject of a number of analyst reports. Jefferies Financial Group upgraded shares of Cirrus Logic to a "buy" rating in a research report on Thursday, June 4th. Weiss Ratings restated a "hold (c+)" rating on shares of Cirrus Logic in a research report on Wednesday, June 24th. Stifel Nicolaus set a $197.00 price target on Cirrus Logic in a research note on Thursday, May 7th. Barclays upped their price target on Cirrus Logic from $120.00 to $140.00 and gave the stock an "equal weight" rating in a report on Thursday, May 7th. Finally, Zacks Research lowered Cirrus Logic from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. Five investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, Cirrus Logic presently has an average rating of "Moderate Buy" and an average target price of $160.29.

Cirrus Logic Stock Down 6.0%

The company's 50-day moving average price is $161.96 and its 200-day moving average price is $147.52. The firm has a market cap of $6.95 billion, a price-to-earnings ratio of 17.65 and a beta of 1.17.

Cirrus Logic (NASDAQ:CRUS - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The semiconductor company reported $1.95 earnings per share for the quarter, topping the consensus estimate of $1.76 by $0.19. Cirrus Logic had a net margin of 20.75% and a return on equity of 20.48%. The firm had revenue of $448.52 million during the quarter, compared to the consensus estimate of $442.25 million. During the same quarter in the prior year, the firm earned $1.67 EPS. The company's revenue for the quarter was up 5.7% on a year-over-year basis. Analysts predict that Cirrus Logic, Inc. will post 8.05 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Scott Thomas sold 1,300 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $180.04, for a total value of $234,052.00. Following the completion of the transaction, the executive vice president directly owned 31,048 shares of the company's stock, valued at approximately $5,589,881.92. This represents a 4.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 the firm's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $166.50, for a total value of $333,000.00. Following the completion of the transaction, the executive vice president owned 4,537 shares in the company, 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. Over the last 90 days, insiders have sold 22,299 shares of company stock valued at $3,581,647. 1.20% of the stock is owned by corporate insiders.

Institutional Trading of Cirrus Logic

Several large investors have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Cirrus Logic by 7,333.3% during the 4th 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 last quarter. Geneos Wealth Management Inc. boosted its stake in Cirrus Logic by 120.0% during the first quarter. Geneos Wealth Management Inc. now owns 220 shares of the semiconductor company's stock worth $32,000 after buying an additional 120 shares during the last quarter. Kohmann Bosshard Financial Services LLC acquired a new position in Cirrus Logic during the fourth quarter worth $33,000. Torren Management LLC purchased a new stake in Cirrus Logic in the 4th quarter valued at $35,000. Finally, Kestra Advisory Services LLC purchased a new stake in Cirrus Logic in the 4th quarter valued at $36,000. Hedge funds and other institutional investors 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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