Shares of Cirrus Logic, Inc. (CRUS) Rise After New ‘Buy’ Rating And $52 Price Target


Shares of Cirrus Logic, Inc. (NASDAQ:CRUS) are up considerably today following the initiation by Dougherty & Co of the stock.

Charles Anderson, an analyst from Dougherty & Co, who beleives that the company’s noise-cancelling earbuds could present an incredibly opportunity, has initiated the stock at a ‘Buy’ with a share price target of $52.

“Cirrus Logic has proven over many years that it is among the most trusted suppliers in the smartphone supply chain and the go-to company for audio semiconductors. For as far as we can see, we believe audio functions on mobile devices will grow in importance due to the increasing popularity of 1) streaming services and 2) ‘always on’ smartphone voice assistants (“Hey Siri”). We are specifically excited about three opportunities to drive upside to our estimates: 1) smartphone OEMs adopting CRUS’ noise cancelling earbuds solution 2) adding China Inc. OEMs as customers (CRUS is vastly underexposed to this portion of the market) and 3) CRUS eventually delivering a voice biometrics solution to smartphones and earning incremental content per device (admittedly longer-term),” said Anderson.The stock is up 8.64% or $2.62 after the positive news, hitting $32.96 per share. About 1.93M shares traded hands. CRUS has declined 9.57% since April 27, 2015 and is downtrending. It has underperformed by 8.68% the S&P500.

Out of 2 analysts covering Cirrus Logic (NASDAQ:CRUS), 2 rate it “Buy”, 0 “Sell”, while 0 “Hold”. This means 100% are positive. Cirrus Logic was the topic in 2 analyst reports since July 23, 2015 according to StockzIntelligence Inc. Rosenblatt maintained the stock on July 23 with “Buy” rating.

The institutional sentiment increased to 1.21 in Q2 2015. Its up 0.25, from 0.96 in 2015Q1. The ratio improved, as 28 funds sold all Cirrus Logic, Inc. shares owned while 74 reduced positions. 39 funds bought stakes while 84 increased positions. They now own 51.36 million shares or 6.52% more from 48.22 million shares in 2015Q1.

Freestone Capital Holdings Llc holds 3.19% of its portfolio in Cirrus Logic, Inc. for 589,349 shares. Ao Asset Management Llc owns 320,000 shares or 2.22% of their US portfolio. Moreover, Holderness Investments Co has 2.15% invested in the company for 61,813 shares. The California-based Sensato Investors Llc has invested 2.07% in the stock. Hussman Strategic Advisors Inc., a Maryland-based fund reported 400,000 shares.

Since March 6, 2015, the stock had 0 buys, and 9 insider sales for $5.07 million net activity. Sherman William D sold 324 shares worth $9,921. Sahota Rashpal sold 17,223 shares worth $477,725. Brannan Andrew sold 21,497 shares worth $596,275. Rhode Jason P sold 100,000 shares worth $3.24M. The insider Anderson Scott Arnold sold 11,195 shares worth $372,692.

Cirrus Logic, Inc. develops high-precision, analog and mixed-signal integrated circuits (ICs) for a range of audio and energy markets. The company has a market cap of $1.94 billion. Cirrus Logic delivers products for consumer and professional audio, automotive entertainment, and targeted industrial applications including energy control, energy measurement, light emitting diode (LED) lighting and energy exploration. It has 19.38 P/E ratio. The Firm also serves clients from sales offices in the United States, Europe and Asia, including the People’s Republic of China, Hong Kong, South Korea, Japan, Singapore, Taiwan and the United Kingdom.