Cirrus Logic (NASDAQ:CRUS) Cut to Sell at Zacks Investment Research

Cirrus Logic (NASDAQ:CRUS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Friday, January 12th.

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.”

Other equities analysts also recently issued research reports about the company. ValuEngine upgraded Cirrus Logic from a “hold” rating to a “buy” rating in a report on Monday, October 2nd. Canaccord Genuity reiterated a “buy” rating and issued a $76.00 target price on shares of Cirrus Logic in a report on Tuesday, September 19th. Northland Securities reiterated a “buy” rating on shares of Cirrus Logic in a report on Friday, November 3rd. Needham & Company LLC reiterated a “buy” rating and issued a $80.00 target price on shares of Cirrus Logic in a report on Friday, November 3rd. Finally, Craig Hallum reiterated a “hold” rating and issued a $54.00 target price (down from $63.00) on shares of Cirrus Logic in a report on Friday, November 3rd. Four investment analysts have rated the stock with a sell rating, five have assigned a hold rating and nine have issued a buy rating to the stock. Cirrus Logic has an average rating of “Hold” and an average price target of $65.76.

Shares of Cirrus Logic (NASDAQ:CRUS) traded down $1.28 on Friday, hitting $51.48. The stock had a trading volume of 368,187 shares, compared to its average volume of 815,354. The stock has a market cap of $3,280.00 and a PE ratio of 12.59. Cirrus Logic has a twelve month low of $48.61 and a twelve month high of $71.97.

Cirrus Logic (NASDAQ:CRUS) last released its earnings results on Thursday, November 2nd. The semiconductor company reported $1.36 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.20 by $0.16. The firm had revenue of $425.50 million for the quarter, compared to the consensus estimate of $410.32 million. Cirrus Logic had a return on equity of 25.37% and a net margin of 17.11%. The company’s revenue for the quarter was down .7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.35 EPS. equities analysts predict that Cirrus Logic will post 4.21 earnings per share for the current year.

In other Cirrus Logic news, Director Christine King sold 562 shares of the stock in a transaction dated Friday, December 15th. The stock was 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 directly owns 11,744 shares in the company, valued at $584,264. The transaction was disclosed in a document filed with the SEC, which is available at this link. Over the last quarter, insiders sold 6,123 shares of company stock valued at $328,718. 1.92% of the stock is currently owned by company insiders.

Hedge funds have recently made changes to their positions in the company. Migdal Insurance & Financial Holdings Ltd. increased its holdings in shares of Cirrus Logic by 72.2% in the third quarter. Migdal Insurance & Financial Holdings Ltd. now owns 2,590 shares of the semiconductor company’s stock valued at $138,000 after purchasing an additional 1,086 shares during the period. DekaBank Deutsche Girozentrale increased its holdings in shares of Cirrus Logic by 96.2% in the third quarter. DekaBank Deutsche Girozentrale now owns 2,798 shares of the semiconductor company’s stock valued at $157,000 after purchasing an additional 1,372 shares during the period. ETRADE Capital Management LLC acquired a new position in shares of Cirrus Logic in the second quarter valued at about $201,000. Sapphire Star Partners LP acquired a new position in shares of Cirrus Logic in the third quarter valued at about $211,000. Finally, Rational Advisors LLC acquired a new position in shares of Cirrus Logic in the third quarter valued at about $213,000. 89.31% of the stock is currently owned by institutional investors and hedge funds.

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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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