Cirrus Logic VP sells over $559k in stock, buys $274k worth

Cirrus Logic, Inc. (NASDAQ:CRUS) has reported a significant transaction by one of its top executives, Andrew Brannan, the company's Vice President of Worldwide Sales. According to a recent filing, Brannan sold 4,000 shares of Cirrus Logic stock at an average price of $139.94, totaling over $559,760. On the same day, Brannan also purchased 4,000 shares at $68.56 per share, amounting to $274,240 in stock acquisitions.

The transactions, which took place on August 16, 2024, were executed under a prearranged trading plan known as Rule 10b5-1, which allows company insiders to set up a trading schedule in advance to avoid accusations of insider trading. This plan was adopted by Brannan on May 10, 2024.

Following the sale, Brannan's direct ownership in the company decreased to 3,530 shares of common stock, valued at the sale price would be worth approximately $493,882. However, Brannan's acquisition of additional shares on the same day increased his total direct holdings to 7,530 shares post-transaction.

The transactions are part of the routine financial activities of company executives, which are required to be disclosed to the Securities and Exchange Commission. These disclosures provide transparency into the trading activities of senior company officials and can offer investors insights into their confidence in the company's performance and future.

Cirrus Logic, with its headquarters in Austin, Texas, is a leader in high-precision analog and digital signal processing components. The company is incorporated in Delaware and operates within the semiconductor and related devices industry.

Investors and analysts often monitor the buying and selling activities of company insiders as they may provide indications of the company's prospects or the executives' views on the stock's valuation. Brannan's recent transactions will likely be of interest to those following Cirrus Logic's financial movements closely.

In other recent news, Cirrus Logic reported a Q1 FY 2025 revenue of $374 million, exceeding market expectations, largely due to strong smartphone shipments. The firm also offered a promising revenue forecast for Q2 FY 2025, predicting it to range from $490 million to $550 million. Cirrus Logic's management team emphasized their strategic focus on maintaining leadership in smartphone audio, expanding into the laptop market, and investing in power and battery technology R&D.

The company is ramping up production of its next-generation custom boosted amplifier and 22-nanometer smart codec. Executives are also enthusiastic about the potential of the PC market, especially with the upcoming AI PC cycle. Gross margin is anticipated to slightly improve in the September quarter due to product mix and supply chain efforts.

Notably, new versions of codecs and amplifiers are set to release later this year, which may impact gross margin mix. Cirrus Logic plans to maintain its leadership in smartphone audio and expand its high-performance mixed signal (HPMS) functionality. The company is also targeting new markets, including the laptop sector, and is exploring further expansion beyond laptops. These are all recent developments that highlight the company's strategic direction and growth potential.

InvestingPro Insights

Amidst the executive trading activities, Cirrus Logic, Inc. (NASDAQ:CRUS) presents an interesting financial landscape. The company's recent metrics and analyst revisions suggest a robust financial health and a promising outlook. Here are some relevant insights derived from InvestingPro's real-time data and tips:

The company is currently trading at a P/E ratio of 25.2, which has been adjusted to 24.75 for the last twelve months as of Q1 2023. This valuation is considered low relative to its near-term earnings growth, signaling potential undervaluation of the stock. Additionally, Cirrus Logic's PEG ratio for the same period stands at 0.25, further highlighting the company’s growth potential when pegged against its earnings.

Cirrus Logic's financial strength is also evident from its balance sheet, as it holds more cash than debt, providing a solid foundation for future operations and investments. Moreover, with a gross profit margin of 51.23% over the last twelve months as of Q1 2023, the company demonstrates strong profitability in its core business activities.

InvestingPro Tips have highlighted that seven analysts have revised their earnings projections upwards for the upcoming period, reflecting a consensus view of positive momentum for Cirrus Logic. Additionally, the company's cash flows can sufficiently cover interest payments, ensuring financial stability. Investors seeking more detailed analysis can find a comprehensive list of 14 InvestingPro Tips, including insights on the company's performance and profitability, at https://www.investing.com/pro/CRUS.

For those closely following the insider transactions of Cirrus Logic, these financial metrics and analyst revisions provide a broader context to understand the company's current market position and future potential.

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