Cirrus Logic (NASDAQ:CRUS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Friday.
According to Zacks, “Cirrus Logic is a premier supplier of high-performance analog circuits and advanced mixed-signal chip solutions. Estimates have remained stable ahead of the company's third-quarter fiscal 2018 results. Continued investments in the audio segment have helped the company to come up with innovative products from time to time. This aids in attracting new customers and brings in additional revenues. Additionally, expansion in the LED market continues to drive growth. However, it should be noted that Cirrus Logic generates a significant portion of revenues from Apple. This means that there is always an inherent risk of losing an Apple design contract, which will significantly hurt the company’s financials. Moreover, the company faces competition from peers, which also remains a concern. Notably, shares of the company have underperformed the industry over the past one year.”
A number of other equities research analysts have also recently issued reports on the stock. Bank of America initiated coverage on shares of Cirrus Logic in a report on Monday, September 18th. They set an “underperform” rating and a $50.00 price target for the company. BidaskClub cut shares of Cirrus Logic from a “hold” rating to a “sell” rating in a report on Wednesday, December 6th. Craig Hallum restated a “hold” rating and set a $54.00 price target (down from $63.00) on shares of Cirrus Logic in a report on Friday, November 3rd. Vetr cut shares of Cirrus Logic from a “hold” rating to a “sell” rating and set a $49.82 price target for the company. in a report on Monday, December 18th. Finally, KeyCorp restated an “overweight” rating on shares of Cirrus Logic in a report on Thursday, September 14th. Five equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and nine have assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and an average target price of $65.76.
Cirrus Logic (NASDAQ:CRUS) last released its quarterly earnings results on Thursday, November 2nd. The semiconductor company reported $1.36 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.20 by $0.16. Cirrus Logic had a net margin of 17.11% and a return on equity of 25.37%. The company had revenue of $425.50 million during the quarter, compared to analysts’ expectations of $410.32 million. During the same period in the prior year, the company earned $1.35 earnings per share. The business’s quarterly revenue was down .7% compared to the same quarter last year. equities analysts forecast that Cirrus Logic will post 4.21 EPS for the current fiscal year.
In related news, Director Christine King sold 562 shares of the stock in a transaction dated Friday, December 15th. The shares were sold at an average price of $49.75, for a total value of $27,959.50. Following the completion of the sale, the director now owns 11,744 shares in the company, valued at $584,264. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In the last quarter, insiders sold 11,123 shares of company stock valued at $601,268. 1.92% of the stock is owned by corporate insiders.
A number of large investors have recently bought and sold shares of the stock. Polianta Ltd raised its position in Cirrus Logic by 30.7% in the fourth quarter. Polianta Ltd now owns 23,400 shares of the semiconductor company’s stock worth $1,213,000 after purchasing an additional 5,500 shares in the last quarter. Aurora Investment Counsel acquired a new position in Cirrus Logic in the fourth quarter worth about $2,616,000. Public Employees Retirement System of Ohio raised its position in Cirrus Logic by 5.4% in the third quarter. Public Employees Retirement System of Ohio now owns 44,822 shares of the semiconductor company’s stock worth $2,390,000 after purchasing an additional 2,283 shares in the last quarter. California Public Employees Retirement System raised its position in Cirrus Logic by 2.1% in the third quarter. California Public Employees Retirement System now owns 166,160 shares of the semiconductor company’s stock worth $8,860,000 after purchasing an additional 3,460 shares in the last quarter. Finally, Janney Montgomery Scott LLC raised its position in Cirrus Logic by 29.0% in the third quarter. Janney Montgomery Scott LLC now owns 15,843 shares of the semiconductor company’s stock worth $845,000 after purchasing an additional 3,558 shares in the last quarter. 89.25% of the stock is owned by hedge funds and other institutional investors.
About Cirrus Logic
Cirrus Logic, Inc is engaged in providing integrated circuits (ICs) for audio and voice signal processing applications. The Company develops analog and mixed-signal ICs for a range of customers. The Company offers two product lines: Portable Audio, and Non-Portable Audio and Other. The Company’s primary facility housing engineering, sales and marketing, and administration functions is located in Austin, Texas.
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