Cirrus Logic Upgraded to Strong-Buy, Analysts React Positively

Shares of Cirrus Logic (NASDAQ:CRUS) received a boost as Wall Street Zen upgraded the stock from a buy rating to a strong-buy rating in a report released on October 7, 2023. This upgrade reflects a growing confidence in the semiconductor company’s performance, which has recently garnered attention from several analysts.

In a separate analysis, Stifel Nicolaus raised its target price for Cirrus Logic from $130.00 to $140.00, maintaining a buy rating. Meanwhile, Weiss Ratings reaffirmed a hold rating on the stock earlier this month. Currently, four analysts have assigned a buy rating to Cirrus Logic, with two maintaining a hold rating. According to MarketBeat, the company holds an average rating of “Moderate Buy” and a consensus target price of $125.00.

Recent Financial Performance

Cirrus Logic announced its quarterly earnings on August 5, 2023, reporting earnings per share (EPS) of $1.51. This figure surpassed analysts’ expectations, which had estimated earnings of $1.07 by $0.44. The company achieved a revenue of $407.27 million for the quarter, significantly exceeding the consensus estimate of $361.97 million. This performance reflects an 8.9% increase in revenue compared to the same quarter last year, where the company reported $1.12 EPS.

Looking ahead, Cirrus Logic has provided guidance for the second quarter of fiscal year 2026, with analysts predicting an average EPS of $5.63 for the current year.

Insider Transactions and Institutional Investor Activity

Recent insider activity has also been notable. Jeffrey W. Baumgartner, Executive Vice President, sold 10,000 shares at an average price of $111.78 on September 2, 2023, totaling approximately $1,117,800. Following this transaction, Baumgartner’s remaining holdings amounted to 14,001 shares, valued at about $1,565,031.78. This sale represents a 41.66% decrease in his ownership.

Additionally, Denise Grode, another Executive Vice President, sold 2,202 shares on September 15, 2023, at an average price of $116.87, which totaled $257,347.74. Following this transaction, Grode held 5,698 shares valued at approximately $665,925.26, reflecting a 27.87% decrease in her position. In total, insiders sold 32,453 shares of the company’s stock worth approximately $3,821,790 in the last quarter, with corporate insiders owning 1.16% of the company’s shares.

A number of institutional investors have also adjusted their positions in Cirrus Logic recently. Burney Co. increased its holdings by 41.7% in the third quarter, owning 130,042 shares valued at $16,293,000 after purchasing an additional 38,267 shares. KRS Capital Management LLC acquired a new position valued at approximately $227,000, while Blue Trust Inc. grew its stake by 8.7% to own 8,342 shares valued at $1,045,000.

Institutional investors now hold 87.96% of Cirrus Logic’s stock, indicating strong confidence from major market players.

Cirrus Logic, a fabless semiconductor company, specializes in low-power, high-precision mixed-signal processing solutions, catering to various sectors including audio technology for smartphones, tablets, and automotive entertainment systems. As the company continues to develop innovative products, its recent financial performance and analyst upgrades suggest a promising outlook for the future.