Cirrus Logic (NASDAQ:CRUS) Reaches New 12-Month Low - Here's Why

Key Points

• Cirrus Logic shares hit a new 52-week low, trading as low as $106.26 and last changing hands at $109.07. The stock remains well below its 50-day and 200-day moving averages of $131.76 and $147.11, respectively.
• Analyst sentiment has weakened, with several firms cutting price targets; the stock carries a consensus “Hold” rating and a $150.71 average price target.
• Despite the sell-off, Cirrus Logic exceeded quarterly EPS expectations and reported 12.9% year-over-year revenue growth. Insiders sold shares worth about $1.64 million during the last quarter, while institutional investors own nearly 88% of the stock.

Cirrus Logic, Inc. (NASDAQ:CRUS - Get Free Report)'s share price reached a new 52-week low on Wednesday . The stock traded as low as $106.26 and last traded at $109.07, with a volume of 1453733 shares traded. The stock had previously closed at $109.51.

Analyst Ratings Changes

A number of brokerages have issued reports on CRUS. Wall Street Zen cut Cirrus Logic from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Barclays cut their target price on Cirrus Logic from $140.00 to $130.00 and set an "equal weight" rating on the stock in a research note on Thursday, August 6th. Weiss Ratings restated a "hold (c+)" rating on shares of Cirrus Logic in a report on Wednesday, June 24th. Stifel Nicolaus lowered their price target on 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, Jefferies Financial Group upgraded shares of Cirrus Logic to a "buy" rating in a research note on Thursday, June 4th. Five analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $150.71.

Cirrus Logic Trading Down 0.4%

The stock has a 50 day moving average price of $131.76 and a 200-day moving average price of $147.11. The stock has a market capitalization of $5.47 billion, a PE ratio of 13.35 and a beta of 1.16.

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

Insider Buying and Selling at Cirrus Logic

In other news, EVP Andrew Brannan sold 6,464 shares of the firm's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $144.71, for a total value of $935,405.44. Following the transaction, the executive vice president owned 7,203 shares of the company's stock, valued at $1,042,346.13. This trade represents a 47.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jeffrey W. Baumgartner sold 1,458 shares of the firm's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $145.97, for a total value of $212,824.26. Following the completion of the transaction, the executive vice president directly owned 16,405 shares in the company, valued at $2,394,637.85. This trade represents a 8.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 11,424 shares of company stock worth $1,644,091 over the last quarter. 1.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cirrus Logic

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Parallel Advisors LLC lifted its holdings in Cirrus Logic by 6.2% during the fourth quarter. Parallel Advisors LLC now owns 1,368 shares of the semiconductor company's stock valued at $162,000 after purchasing an additional 80 shares in the last quarter. CIBC Private Wealth Group LLC increased its stake in shares of Cirrus Logic by 29.2% in the fourth quarter. CIBC Private Wealth Group LLC now owns 389 shares of the semiconductor company's stock worth $46,000 after purchasing an additional 88 shares in the last quarter. EP Wealth Advisors LLC raised its position in shares of Cirrus Logic by 1.7% during the 2nd quarter. EP Wealth Advisors LLC now owns 5,739 shares of the semiconductor company's stock valued at $598,000 after purchasing an additional 95 shares during the period. Diversified Trust Co raised its position in shares of Cirrus Logic by 1.1% during the 1st quarter. Diversified Trust Co now owns 9,097 shares of the semiconductor company's stock valued at $1,316,000 after purchasing an additional 102 shares during the period. Finally, Wedmont Private Capital lifted its stake in shares of Cirrus Logic by 6.9% during the 2nd quarter. Wedmont Private Capital now owns 1,644 shares of the semiconductor company's stock valued at $247,000 after buying an additional 106 shares in the last quarter. 87.96% of the stock is owned by hedge funds and other institutional investors.

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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