In a recent transaction, Justin E. Dougherty, the SVP of Global Operations at Cirrus Logic, Inc. (NASDAQ:CRUS), sold shares of the company's stock, totaling over $1.3 million. The sales occurred on August 9, 2024, with the prices of the shares sold ranging from $131.6929 to $131.7065.
Dougherty's transactions involved a total sale of 10,203 shares of common stock. According to the footnotes provided in the SEC filing, these shares were sold at varying prices within the range specified. The exact number of shares sold at each price point will be disclosed upon request by any shareholder or the SEC staff.
On the same day, Dougherty also executed option exercises, acquiring 14,902 shares of Cirrus Logic common stock. These transactions fell within the price range of $68.56 to $78.00, amounting to a total value of $700,303. The exercise of options is a routine part of executive compensation, allowing holders to buy stock at a price set in the past, which can provide profit if the company's stock has risen since then.
Following these transactions, Dougherty's remaining ownership in the company stands at 4,838 shares of common stock. The SEC filing indicates that all transactions reported were direct ownership and the shares sold were part of Dougherty's vested equity compensation.
The reported transactions provide insight into the trading activities of Cirrus Logic's executives and may be of interest to investors tracking insider trading patterns. However, it is important to note that these filings do not necessarily indicate a change in company fundamentals or executive sentiment.
Cirrus Logic, Inc., headquartered in Austin, Texas, operates in the semiconductor industry, specializing in analog and mixed-signal processing components.
In other recent news, Cirrus Logic reported a Q1 FY 2025 revenue of $374 million, surpassing market expectations due to strong smartphone shipments. The company also provided a positive revenue forecast for Q2 FY 2025, estimating it to be between $490 million to $550 million. Cirrus Logic's strategic focus includes maintaining leadership in smartphone audio, expanding into the laptop market, and investing in power and battery technology R&D.
In addition, Cirrus Logic is ramping up production of its next-generation custom boosted amplifier and 22-nanometer smart codec. The company's executives expressed optimism about the potential of the PC market, particularly with the upcoming AI PC cycle. They also anticipate a slight improvement in gross margin for the upcoming September quarter due to product mix and supply chain optimization efforts.
The company is planning to release new versions of codecs and amplifiers later this year. While specifics about Cirrus Logic's largest customer were not disclosed, the company is not solely dependent on smartphone unit growth, but on new and enhanced content. Over 100 designs are currently in progress, with product launches targeted for 2025.
InvestingPro Insights
As Cirrus Logic, Inc. (NASDAQ:CRUS) sees significant insider trading activity, investors might wonder about the company's financial health and market performance. According to InvestingPro data, Cirrus Logic boasts a robust market capitalization of $7.33 billion, reflecting investor confidence in the company's market value. Additionally, the company's P/E ratio stands at 24.49, indicating that its stock may be trading at a reasonable valuation relative to near-term earnings growth. This is further substantiated by the adjusted P/E ratio for the last twelve months as of Q1 2025, which is at a similar level of 24.29.
InvestingPro Tips highlight that Cirrus Logic holds more cash than debt on its balance sheet, suggesting a strong financial position that may reassure investors concerned about the company's solvency. Moreover, with 7 analysts having revised their earnings upwards for the upcoming period, there is a positive sentiment around the company's future earnings potential. This optimism is echoed in the company's recent performance, with a significant return of 19.38% over the last week, and a high return of 71.33% over the past year, indicating robust market activity and investor interest.
For investors seeking more insights, there are additional InvestingPro Tips available for Cirrus Logic, which can be found at https://www.investing.com/pro/CRUS. These tips may further inform investment decisions and provide a deeper understanding of the company's financial and market status.
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