Hsbc Holdings PLC Invests $1.81 Million in Cirrus Logic, Inc. $CRUS

Key Points

• HSBC purchased a new 12,201-share position in Cirrus Logic worth approximately $1.81 million during the second quarter. Institutional investors collectively own 87.96% of CRUS.
• Analyst sentiment is mixed: five analysts rate the stock Buy, three Hold, and one Sell, producing an average Hold rating and a $150.71 price target. Zacks downgraded the shares to Strong Sell, while KeyCorp and Stifel maintained bullish ratings but lowered their price targets.
• CRUS opened at $108.48, near its 12-month low of $108.12, despite quarterly EPS beating estimates and revenue increasing 12.9% year over year. Insiders have sold 16,631 shares worth about $2.54 million over the past quarter.

Hsbc Holdings PLC purchased a new position in shares of Cirrus Logic, Inc. (NASDAQ:CRUS - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 12,201 shares of the semiconductor company's stock, valued at approximately $1,807,000.

Several other hedge funds also recently added to or reduced their stakes in CRUS. Geneos Wealth Management Inc. boosted its position in shares of Cirrus Logic by 120.0% during the first quarter. Geneos Wealth Management Inc. now owns 220 shares of the semiconductor company's stock valued at $32,000 after buying an additional 120 shares during the period. Caitong International Asset Management Co. Ltd raised its holdings in shares of Cirrus Logic by 7,333.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 223 shares of the semiconductor company's stock worth $26,000 after buying an additional 220 shares during the period. Elevation Wealth Partners LLC lifted its stake in shares of Cirrus Logic by 72.5% during the 2nd quarter. Elevation Wealth Partners LLC now owns 295 shares of the semiconductor company's stock worth $44,000 after acquiring an additional 124 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Cirrus Logic during the 4th quarter worth approximately $36,000. Finally, CIBC Private Wealth Group LLC boosted its holdings in Cirrus Logic by 29.2% during the 4th quarter. CIBC Private Wealth Group LLC now owns 389 shares of the semiconductor company's stock valued at $46,000 after acquiring an additional 88 shares during the period. 87.96% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have commented on CRUS shares. Zacks Research downgraded Cirrus Logic from a "hold" rating to a "strong sell" rating in a research report on Friday, August 14th. Weiss Ratings reissued a "hold (c+)" rating on shares of Cirrus Logic in a research note on Wednesday, June 24th. KeyCorp cut their price target on shares of Cirrus Logic from $190.00 to $170.00 and set an "overweight" rating on the stock in a report on Thursday, August 6th. Stifel Nicolaus lowered their price objective on shares of Cirrus Logic from $197.00 to $160.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Finally, Wall Street Zen downgraded shares of Cirrus Logic from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $150.71.

Key Headlines Impacting Cirrus Logic

Here are the key news stories impacting Cirrus Logic this week:

• Positive Sentiment: Zacks modestly raised its FY2029 EPS forecast to $8.73 from $8.58, suggesting some longer-term earnings potential despite the broader downgrade cycle. Cirrus Logic analyst estimates
• Neutral Sentiment: The revised FY2027 EPS estimate of $7.47 matches the current consensus forecast, while the company’s most recent quarterly results showed EPS slightly above expectations and revenue growth of 12.9% year over year. However, those results are not the focus of the latest analyst revisions. Cirrus Logic earnings and estimates
• Negative Sentiment: Zacks cut EPS forecasts across multiple periods, including FY2027 to $7.47 from $8.08, FY2028 to $7.75 from $8.53, Q2 2027 to $2.15 from $2.42, Q3 2027 to $2.48 from $2.76, Q1 2028 to $1.40 from $1.50, Q2 2028 to $2.21 from $2.42, Q3 2028 to $2.71 from $3.04, Q4 2028 to $1.42 from $1.56, and Q1 2029 to $1.52 from $1.54. The breadth of the reductions signals weaker expected earnings momentum and is likely the primary reason CRUS shares are decreasing. Zacks Research estimates for Cirrus Logic

Insider Activity at Cirrus Logic

In related news, EVP Scott Thomas sold 1,300 shares of the company's stock in a transaction that occurred 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 sale, the executive vice president owned 31,048 shares in the company, valued at $5,589,881.92. This represents a 4.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jeffrey W. Baumgartner sold 1,166 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $117.89, for a total transaction of $137,459.74. Following the completion of the transaction, the executive vice president owned 14,073 shares in the company, valued at approximately $1,659,065.97. This trade represents a 7.65% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 16,631 shares of company stock worth $2,536,629 over the last quarter. Insiders own 1.20% of the company's stock.

Cirrus Logic Stock Performance

CRUS opened at $108.48 on Monday. Cirrus Logic, Inc. has a 12-month low of $108.12 and a 12-month high of $180.42. The business's fifty day simple moving average is $133.85 and its 200-day simple moving average is $147.56. The company has a market capitalization of $5.44 billion, a price-to-earnings ratio of 13.28 and a beta of 1.18.

Cirrus Logic (NASDAQ:CRUS - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The semiconductor company reported $1.84 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.03. Cirrus Logic had a return on equity of 20.61% and a net margin of 21.00%.The business had revenue of $459.72 million for the quarter, compared to the consensus estimate of $460.32 million. During the same quarter in the previous year, the business earned $1.51 EPS. The company's quarterly revenue was up 12.9% compared to the same quarter last year. On average, equities research analysts predict that Cirrus Logic, Inc. will post 7.32 EPS for the current year.

Cirrus Logic Profile

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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