Shares of Cirrus Logic (NASDAQ: CRUS) were upgraded from a buy to a strong-buy rating by Wall Street Zen in a report released on October 7, 2023. This upgrade follows a series of positive evaluations from various analysts regarding the semiconductor company’s performance.
Analysts at Stifel Nicolaus increased their price target for Cirrus Logic from $130.00 to $140.00, maintaining a “buy” rating. Additionally, Weiss Ratings reaffirmed a “hold (c)” rating on October 8, 2023. Currently, four research analysts have rated the stock as a buy, while two have issued hold ratings. According to MarketBeat, Cirrus Logic holds an average rating of “Moderate Buy” with a consensus target price set at $125.00.
Cirrus Logic’s stock experienced a rise of 2.4% following this flurry of upgrades. The company reported its quarterly earnings on August 5, 2023, revealing earnings per share (EPS) of $1.51, surpassing the consensus estimate of $1.07 by $0.44. With a return on equity of 18.38% and a net margin of 18.15%, the firm generated revenue of $407.27 million, significantly above the expected $361.97 million. Compared to the same quarter last year, revenue grew by 8.9%.
Insider Transactions and Institutional Investor Activity
Recent insider trading activity reflects a strategic repositioning within Cirrus Logic. Executive Vice President Jeffrey W. Baumgartner sold 10,000 shares on September 2, 2023, at an average price of $111.78, totaling $1,117,800.00. Following this sale, Baumgartner’s stake in the company decreased by 41.66%, leaving him with 14,001 shares valued at approximately $1,565,031.78.
On September 15, 2023, another executive, Denise Grode, sold 2,202 shares at an average price of $116.87, raising $257,347.74 from the transaction. Grode now owns 5,698 shares, a 27.87% reduction in her position. Collectively, insiders sold 32,453 shares worth $3,821,790 in the last quarter, with corporate insiders holding 1.16% of the company’s stock.
Hedge funds and institutional investors have also been active in the stock. Notably, Burney Co. increased its holdings by 41.7% in the third quarter, owning 130,042 shares valued at approximately $16.3 million. KRS Capital Management LLC entered a new position valued at about $227,000, while Blue Trust Inc. expanded its stake by 8.7%, now holding 8,342 shares valued at $1.045 million. CWM LLC and Inspire Investing LLC also reported significant increases in their holdings, reflecting heightened institutional interest in Cirrus Logic.
Company Overview and Future Outlook
Cirrus Logic, a fabless semiconductor company, specializes in low-power, high-precision mixed-signal processing solutions. Based in the United States, the company develops a range of audio products, including amplifiers, codec components, and digital signal processors. Their innovative SoundClear technology enhances audio experiences across various devices, such as smartphones, tablets, and automotive entertainment systems.
Looking ahead, Cirrus Logic has set guidance for Q2 2026, projecting an EPS of $5.63 for the current year, aligning with positive analyst sentiment and a robust financial performance. As the semiconductor market continues to evolve, Cirrus Logic appears to be well-positioned for growth, bolstered by a strong upgrade from analysts and sustained interest from institutional investors.
