Cirrus Logic Shares Upgraded to Strong-Buy as Analysts Raise Targets

Shares of Cirrus Logic (NASDAQ: CRUS) received a boost this weekend when Wall Street Zen upgraded the stock from a buy rating to a strong-buy rating. This upgrade signals increasing confidence among analysts in the semiconductor company’s potential for growth. The news was released in a report published on Saturday, October 7, 2023.

Several other analysts have also weighed in on Cirrus Logic recently. Stifel Nicolaus raised its target price for the company from $130.00 to $140.00, maintaining a buy rating. In contrast, Weiss Ratings reaffirmed a “hold (c)” rating on October 8, 2023. Currently, four equities research analysts have rated Cirrus Logic with a buy rating, while two have issued hold ratings. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $125.00.

Quarterly Earnings Exceed Expectations

Cirrus Logic recently reported its quarterly earnings on August 5, 2023, revealing that the company achieved earnings per share (EPS) of $1.51, surpassing the consensus estimate of $1.07 by $0.44. The company also reported a return on equity of 18.38% and a net margin of 18.15%. Revenue for the quarter reached $407.27 million, significantly higher than the consensus estimate of $361.97 million. This represents an 8.9% increase in revenue compared to the same quarter last year.

Looking forward, Cirrus Logic has set its guidance for Q2 2026 at a projected EPS, with analysts predicting an average EPS of 5.63 for the current fiscal year.

Insider Trading Activity

In other news regarding Cirrus Logic, executive vice president Jeffrey W. Baumgartner sold 10,000 shares of the company’s stock on September 2, 2023, at an average price of $111.78. The total transaction amounted to $1,117,800.00. Following the sale, Baumgartner retains ownership of 14,001 shares, valued at approximately $1,565,031.78, reflecting a 41.66% decrease in his ownership stake.

Additionally, EVP Denise Grode sold 2,202 shares on September 15, 2023, at an average price of $116.87, totaling $257,347.74. After this transaction, Grode holds 5,698 shares, valued at around $665,925.26, which represents a 27.87% drop in her stake. In total, corporate insiders sold 32,453 shares worth $3,821,790 in the last quarter, with insiders collectively owning 1.16% of the company’s stock.

Institutional Investor Activity

Institutional investors appear to be increasingly active in Cirrus Logic’s stock. Burney Co. increased its holdings by 41.7% during the third quarter, owning 130,042 shares valued at $16,293,000 after acquiring an additional 38,267 shares. KRS Capital Management LLC established a new position worth approximately $227,000 in the same quarter.

Blue Trust Inc. grew its stake in Cirrus Logic by 8.7%, owning 8,342 shares now valued at $1,045,000. CWM LLC raised its holdings by 46.5%, now possessing 17,034 shares valued at $2,134,000. Inspire Investing LLC significantly increased its position in the company by 186.9%, acquiring an additional 8,625 shares, bringing their total to 13,241, worth about $1,659,000. Overall, institutional investors own 87.96% of Cirrus Logic’s stock.

Cirrus Logic, a fabless semiconductor company, is known for developing low-power, high-precision mixed-signal processing solutions. The company offers a variety of audio products, including amplifiers and integrated codec components, which are critical in devices ranging from smartphones to automotive entertainment systems.

As the market continues to evolve, Cirrus Logic’s performance and analyst ratings will be closely watched by investors looking for insights into the semiconductor sector’s future.