Cirrus Logic Upgraded to Strong-Buy as Analysts Boost Ratings

Shares of Cirrus Logic (NASDAQ:CRUS) received a positive boost after Wall Street Zen upgraded the stock from a buy rating to a strong-buy rating in a report released on Saturday. This upgrade comes as part of a broader trend, with several analysts recently reassessing their positions on the semiconductor company’s stock.

On Friday, Stifel Nicolaus increased its target price for Cirrus Logic from $130.00 to $140.00, maintaining a “buy” rating. Meanwhile, Weiss Ratings reaffirmed a “hold (c)” rating in a research note dated October 8. Currently, four equity research analysts have assigned a buy rating, while two analysts have issued a hold rating for the stock. According to MarketBeat, Cirrus Logic holds an average rating of “Moderate Buy” with a consensus target price of $125.00.

Strong Earnings Report Fuels Investor Confidence

Cirrus Logic recently announced its quarterly earnings on August 5, 2023, revealing a substantial earnings per share (EPS) of $1.51. This figure exceeded analysts’ expectations, which had estimated an EPS of $1.07, marking a difference of $0.44. The company reported revenue of $407.27 million, significantly higher than the consensus estimate of $361.97 million. This reflects a year-over-year revenue growth of 8.9% compared to the same quarter last year, where the EPS was $1.12.

In light of this performance, Cirrus Logic has set guidance for Q2 2026, with analysts forecasting an average EPS of 5.63 for the current year.

Recent Insider Transactions and Institutional Interest

In other developments, Jeffrey W. Baumgartner, Executive Vice President, sold 10,000 shares of the company’s stock on September 2. The shares were sold at an average price of $111.78, totalling $1,117,800.00. Following this transaction, Baumgartner holds 14,001 shares valued at approximately $1,565,031.78, indicating a 41.66% reduction in his ownership.

Similarly, another executive, Denise Grode, sold 2,202 shares on September 15, at an average price of $116.87, resulting in a transaction of $257,347.74. Grode’s remaining shares are valued at approximately $665,925.26, reflecting a 27.87% decrease in her position. In total, corporate insiders sold 32,453 shares worth $3,821,790 in the last quarter, with insiders now owning 1.16% of the company’s stock.

Hedge funds and institutional investors are also showing increased interest in Cirrus Logic. Burney Co. expanded its holdings by 41.7% in the third quarter, now owning 130,042 shares valued at approximately $16,293,000. Other notable transactions include KRS Capital Management LLC, which acquired a new position valued at around $227,000, and Blue Trust Inc., which grew its stake by 8.7%.

Institutional investors now control 87.96% of Cirrus Logic’s stock, indicating robust confidence in the company’s future.

Cirrus Logic is a fabless semiconductor company known for developing low-power, high-precision mixed-signal processing solutions, serving markets in the United States, China, and beyond. Its product lineup includes a variety of audio components, codecs, and advanced technologies that enhance user experience across multiple devices, including smartphones and automotive systems.