Tag Archives: CRUS

Stay Away From Apple Component Players – Cramer’s Lightning Round (5/16/18)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Wednesday, May 16.

Bullish Calls

Johnson & Johnson (NYSE:JNJ): Cramer has been a fan and still likes the stock.

Pure Storage (NYSE:PSTG): They are a smart management company.

Foot Locker (NYSE:FL): Cramer thinks it’s okay. He prefers Nike (NYSE:NKE) even though it’s at the 52-week high.

Insperity (NYSE:NSP): This “business optimization company”, as Cramer calls it, doesn’t quit and he has been recommending it for a long time.

Bearish Calls

Gulfport Energy (NASDAQ:GPOR): Don’t go down the food chain. Buy Schlumberger (NYSE:SLB) as it’s a high quality company.

Preferred Apartment Communities (NYSEMKT:APTS): Cramer is not a fan of multi-family REITs. The 7% yield seems like a red flag.

Cirrus Logic (NASDAQ:CRUS): “We’re not really recommending the components players that go into Apple (NASDAQ:AAPL) right now. It’s just too hard.”

Frontline (NYSE:FRO): The crude carriers have done poorly.

>>Read Wednesday’s Mad Money summary here

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Cirrus Logic (CRUS) Shares Sold by New Amsterdam Partners LLC NY

New Amsterdam Partners LLC NY lessened its position in Cirrus Logic (NASDAQ:CRUS) by 49.9% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 85,470 shares of the semiconductor company’s stock after selling 85,077 shares during the quarter. New Amsterdam Partners LLC NY owned 0.13% of Cirrus Logic worth $3,473,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Meadow Creek Investment Management LLC increased its stake in Cirrus Logic by 18.5% in the fourth quarter. Meadow Creek Investment Management LLC now owns 8,500 shares of the semiconductor company’s stock valued at $441,000 after acquiring an additional 1,326 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in Cirrus Logic by 43.4% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,401 shares of the semiconductor company’s stock valued at $228,000 after acquiring an additional 1,333 shares during the last quarter. Allen Capital Group LLC increased its stake in Cirrus Logic by 19.6% in the first quarter. Allen Capital Group LLC now owns 8,648 shares of the semiconductor company’s stock valued at $351,000 after acquiring an additional 1,417 shares during the last quarter. OppenheimerFunds Inc. grew its stake in shares of Cirrus Logic by 17.2% during the fourth quarter. OppenheimerFunds Inc. now owns 10,110 shares of the semiconductor company’s stock valued at $524,000 after buying an additional 1,486 shares during the last quarter. Finally, Eqis Capital Management Inc. grew its stake in shares of Cirrus Logic by 17.8% during the fourth quarter. Eqis Capital Management Inc. now owns 10,480 shares of the semiconductor company’s stock valued at $544,000 after buying an additional 1,587 shares during the last quarter. 91.11% of the stock is currently owned by institutional investors and hedge funds.

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Cirrus Logic opened at $38.92 on Friday, according to Marketbeat. The stock has a market capitalization of $2.47 billion, a P/E ratio of 10.55, a price-to-earnings-growth ratio of 1.37 and a beta of 0.26. Cirrus Logic has a 1 year low of $38.86 and a 1 year high of $39.73.

Cirrus Logic (NASDAQ:CRUS) last posted its earnings results on Wednesday, May 2nd. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.58 by ($0.07). The business had revenue of $303.20 million during the quarter, compared to the consensus estimate of $316.57 million. Cirrus Logic had a return on equity of 20.50% and a net margin of 10.57%. The firm’s revenue for the quarter was down 7.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.85 earnings per share. analysts predict that Cirrus Logic will post 2.58 EPS for the current fiscal year.

Cirrus Logic announced that its board has initiated a stock buyback program on Monday, February 5th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the semiconductor company to purchase shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.

A number of research analysts have recently issued reports on the company. Barclays reduced their price objective on Cirrus Logic from $36.00 to $32.00 and set an “underweight” rating on the stock in a research note on Thursday, May 3rd. BidaskClub raised Cirrus Logic from a “strong sell” rating to a “sell” rating in a research note on Wednesday, May 2nd. Craig Hallum raised Cirrus Logic from a “hold” rating to a “buy” rating and reduced their price objective for the company from $44.00 to $43.00 in a research note on Monday, April 30th. Zacks Investment Research cut Cirrus Logic from a “hold” rating to a “strong sell” rating in a research note on Wednesday, April 25th. Finally, TheStreet cut Cirrus Logic from a “b-” rating to a “c+” rating in a research note on Tuesday, April 17th. Five equities research analysts have rated the stock with a sell rating, two have given a hold rating and seven have assigned a buy rating to the stock. Cirrus Logic currently has an average rating of “Hold” and an average target price of $58.32.

In related news, VP Randolph K. Carlson sold 7,265 shares of the firm’s stock in a transaction dated Tuesday, February 13th. The stock was sold at an average price of $42.03, for a total value of $305,347.95. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders sold 8,008 shares of company stock worth $335,413 over the last three months. 1.92% of the stock is owned by insiders.

About Cirrus Logic

Cirrus Logic, Inc, a fabless semiconductor company, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs) for a range of consumer and industrial markets. The company offers portable and non-portable audio, and other products. Its products include analog and mixed-signal audio converters, and digital signal processing products for mobile applications; codecs-chips that integrate analog-to-digital converters and digital-to-analog converters into a single IC; smart codecs, a codec with digital signal processer; amplifiers; micro-electromechanical systems microphones; digital interface products; and standalone digital signal processors.

Institutional Ownership by Quarter for Cirrus Logic (NASDAQ:CRUS)

Here's Why Many Apple Suppliers' Shares Crashed Last Month

Shares of several Apple (NASDAQ:AAPL) suppliers fell hard in April of 2018, either in direct response to Cupertino’s business results or due to comments made by the iPhone maker’s executives.

According to data from S&P Global Market Intelligence, audio chip supplier Cirrus Logic (NASDAQ:CRUS) fell 10.2% lower in April including a 7% dip in three days as analysts pondered the future of Apple’s iPhone plans. Screen builder LG Display (NYSE:LPL) saw a 10.7% month-long dip, and memory chip giant Micron Technology (NASDAQ:MU) took an 11.8% haircut last month. For Apple’s own part, its share prices fell 7% in three days but recovered to post a 1.5% total dip for the month — slightly stronger than the broader market’s 2.6% decline.

Close-up shot of an Apple iPhone X splashing through some water.

Image source: Apple.

So what

Before Apple’s earnings report at the end of April, it looked like the iPhone X was running into supply chain issues that should put a lid on the sales volume. Build rates calculated by third-party analysts on the back of checks and analysis further down the supply chain indicated that Apple would slash its iPhone X production to about 60% of the expected volume. For example, LG Display and its peers only got 25 million orders for iPhone X-style OLED screens in the first quarter, down from early estimates of roughly 40 million.

Cirrus Logic missed Wall Street’s earnings and revenue targets, pinning the blame on lower smartphone volumes than expected. The company is working its way into some Android phones at the moment, but Apple remains its largest smartphone-related client by a long shot, so it’s pretty clear that management had expected more iPhone-based orders than they’re getting.

In the actual report, Apple avoided publishing any specific unit counts for iPhone X sales but repeated the mantra that the high-priced handset was the best-selling model of all. Investors and analysts walked away from the report with nothing more than a hazy sense of stability.

And in Apple’s earnings call with Street analysts, CFO Luca Maestri noted that memory chip prices are running high enough to put pressure on Apple’s profit margins right now. A few minutes later, Maestri turned around to a firm prediction that both NAND and DRAM memory prices should peak “very soon,” perhaps by the end of 2018. That would be bad news for Micron.

Now what

When mighty Apple moves, it sends ripple effects through the ranks of its suppliers — and sometimes across entire sub-sectors of the semiconductor and electronics industries, even into corners not directly touched by Apple itself.

I think Cirrus is smart to seek diversification in the Android camp, but it will still take many years to build a significant cushion against Apple-related volatility. LG Display doesn’t live or die by Apple’s hand alone, having a long history of Android-based business relationships to fall back on while exploring growth in the emerging large-screen OLED TV market.

A couple of analysts took action on Maestri’s memory-chip comments, digging into that sector’s business trends to confirm the Apple CFO’s predictions. They didn’t find a whole lot of evidence. For example, Mizuho analyst Vijay Rakesh noted that “actions speak louder than words,” and that Apple wouldn’t be buying a whole lot of components at peak prices if it expected lower costs later in the year, just as production volumes ramp up in preparation for the holidays.

So Rakesh kept a “buy” rating on Micron, and his price target remains more than 30% above the stock’s current prices. I’ll admit that Apple’s management sits closer to the epicenter of whatever is going on in the various parts of the microchip market, but I’m not selling my Micron shares based on Maestri’s comments here.