Cirrus Logic (NASDAQ:CRUS) Rating Increased to Strong-Buy at Wall Street Zen

Key Points

• Cirrus Logic has been upgraded from a "buy" rating to a "strong-buy" rating by Wall Street Zen after the company reported better-than-expected Q3 earnings, with earnings per share of $1.67 compared to the consensus estimate of $1.15.
• Barclays has raised its target price for Cirrus Logic from $80 to $90, while Stifel Nicolaus set a target price of $120, indicating positive sentiment among analysts.
• The company announced a $500 million share repurchase program, allowing for the buyback of up to 9.6% of its stock, which suggests confidence from the Board of Directors regarding the stock's valuation.

Wall Street Zen upgraded shares of Cirrus Logic (NASDAQ:CRUS - Free Report) from a buy rating to a strong-buy rating in a research note published on Sunday.

Other research analysts have also recently issued research reports about the company. Stifel Nicolaus set a $120.00 price objective on Cirrus Logic in a research report on Wednesday, May 7th. Barclays increased their price target on Cirrus Logic from $80.00 to $90.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 7th. One equities research 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 company. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $128.33.

Cirrus Logic Stock Down 6.5%

Shares of Cirrus Logic stock traded down $6.81 during trading on Friday, reaching $98.16. 1,184,129 shares of the company were exchanged, compared to its average volume of 643,645. The business has a 50-day moving average price of $103.88 and a 200-day moving average price of $100.88. The firm has a market capitalization of $5.04 billion, a price-to-earnings ratio of 16.33 and a beta of 0.92. Cirrus Logic has a twelve month low of $75.83 and a twelve month high of $147.46.

Cirrus Logic (NASDAQ:CRUS - Get Free Report) last announced its earnings results on Tuesday, August 5th. The semiconductor company reported $1.51 EPS for the quarter, topping the consensus estimate of $1.07 by $0.44. The business had revenue of $407.27 million during the quarter, compared to analysts' expectations of $361.97 million. Cirrus Logic had a net margin of 17.48% and a return on equity of 17.66%. The firm's revenue was up 8.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.12 earnings per share. On average, equities research analysts forecast that Cirrus Logic will post 5.63 EPS for the current fiscal year.

Cirrus Logic declared that its board has initiated a share repurchase program on Tuesday, May 6th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the semiconductor company to buy up to 9.6% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's management believes its stock is undervalued.

Insider Transactions at Cirrus Logic

In other news, EVP Jeffrey W. Baumgartner sold 10,000 shares of Cirrus Logic stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $100.00, for a total value of $1,000,000.00. Following the completion of the transaction, the executive vice president owned 14,001 shares in the company, valued at approximately $1,400,100. The trade was a 41.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Alexander M. Davern sold 1,000 shares of Cirrus Logic 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 directly owned 20,907 shares of the company's stock, valued at approximately $2,208,197.34. This trade represents a 4.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 13,000 shares of company stock worth $1,305,620 in the last 90 days. 1.16% of the stock is currently owned by insiders.

Institutional Trading of Cirrus Logic

Hedge funds have recently modified their holdings of the stock. Louisiana State Employees Retirement System boosted its stake in Cirrus Logic by 0.7% during the second quarter. Louisiana State Employees Retirement System now owns 15,000 shares of the semiconductor company's stock worth $1,564,000 after buying an additional 100 shares during the last quarter. Somerset Trust Co raised its stake in shares of Cirrus Logic by 3.5% in the second quarter. Somerset Trust Co now owns 3,292 shares of the semiconductor company's stock valued at $343,000 after acquiring an additional 110 shares in the last quarter. May Hill Capital LLC lifted its stake in Cirrus Logic by 5.4% in the first quarter. May Hill Capital LLC now owns 2,220 shares of the semiconductor company's stock worth $221,000 after acquiring an additional 113 shares during the last quarter. Farther Finance Advisors LLC lifted its holdings in Cirrus Logic by 4.3% during the 2nd quarter. Farther Finance Advisors LLC now owns 2,806 shares of the semiconductor company's stock worth $293,000 after buying an additional 116 shares during the last quarter. Finally, Public Employees Retirement System of Ohio increased its stake in Cirrus Logic by 0.7% in the second quarter. Public Employees Retirement System of Ohio now owns 18,431 shares of the semiconductor company's stock valued at $1,922,000 after purchasing an additional 122 shares during the last quarter. 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.