In a recent transaction, David J. Tupman, a director at Cirrus Logic, Inc. (NASDAQ:CRUS), sold 5,000 shares of the company's common stock, netting a total of $599,750. The sale, which took place on June 6, 2024, was executed at an average price of $119.95 per share.
The transaction was conducted under a pre-arranged trading plan known as Rule 10b5-1, which allows company insiders to sell shares over a predetermined period of time to avoid accusations of trading on non-public information. The plan had been adopted by Tupman earlier in the year on February 12, 2024.
On the same day, Tupman also engaged in a transaction to acquire an equivalent number of shares through the exercise of options, at a price of $33.38 per share, resulting in a total transaction value of $166,900. These options were part of a compensation package, with the shares vesting over a period of time as per the company's incentive plan. Specifically, the options exercised were vested and exercisable as detailed in a footnote, with 25% vested on July 29, 2016, and the remaining shares vested monthly over the next 36 months until fully vested on July 29, 2019.
Following these transactions, Tupman's direct ownership in the company stands at 21,719 shares of common stock. The sales and acquisitions reflect the director's strategic management of his equity stake in Cirrus Logic, a semiconductor company with a primary focus on semiconductor and related devices.
Investors and market watchers often look to the trading activities of company insiders as a signal of their confidence in the firm's prospects. While such transactions are a routine part of insider ownership management, they are closely monitored for insights into the company's performance and the valuation of its stock.
Cirrus Logic has not made any additional comments regarding these transactions.
In other recent news, Cirrus Logic has seen significant developments in its leadership and financial outlook. The company announced the nomination of William D. Mosley for election to its board of directors, replacing Tim Dehne who is set to retire. Concurrently, the company is preparing for the departure of CFO Venk Nathamuni, with Ulf Habermann named as interim CFO.
Stifel maintained its Buy rating on Cirrus Logic, expressing confidence in the company's financial leadership transition. The firm highlighted the incoming CFO's extensive experience within the company, expecting a seamless continuation of the financial strategy. Meanwhile, Benchmark downgraded Cirrus Logic from Buy to Hold, suggesting the current stock price already reflects the company's consistent performance and growth potential.
TD Cowen, on the other hand, raised the stock's price target to $115 from $100, maintaining a Buy rating. The firm's assessment follows Cirrus Logic's performance, which surpassed the typically soft seasonal results for the March quarter, driven by robust mobile shipments to Apple (NASDAQ:AAPL). These are recent developments that could shape the company's future trajectory.
InvestingPro Insights
In light of the recent insider trading activities at Cirrus Logic, Inc. (NASDAQ:CRUS), it's worth noting that the company's management has been actively engaged in share repurchases, which can be a sign of confidence in the company's value. This aligns with the InvestingPro Tips indicating that management has been aggressively buying back shares. Additionally, Cirrus Logic is in a strong financial position, holding more cash than debt on its balance sheet, which provides flexibility and may be reassuring to investors.
From a valuation standpoint, CRUS is trading at a P/E ratio of 23.19, which is considered low relative to its near-term earnings growth, as per InvestingPro Tips. This suggests that the stock might be undervalued, providing a potentially attractive entry point for investors. Moreover, the company has been experiencing a significant price uptick over the last six months, with a 51.31% total return, reflecting a strong market performance that could catch the eye of investors looking for growth.
InvestingPro Data highlights that Cirrus Logic has a market capitalization of $6.28 billion, with a revenue of $1.79 billion over the last twelve months as of Q4 2024. Despite a slight revenue decline of 5.73% during this period, the company maintains a robust gross profit margin of 51.21%, indicating efficient operations and a strong pricing power.
For those considering an investment in Cirrus Logic, there are additional InvestingPro Tips available that could provide further insights into the company's performance and prospects. To explore these tips and make a more informed investment decision, visit https://www.investing.com/pro/CRUS. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 17 valuable InvestingPro Tips for Cirrus Logic.
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