Saturday, June 25, 2022

Cirrus Logic Inc. (NASDAQ:CRUS) on the Path to Profitability

Many stocks have been testing new highs in 2020, and one of the most notable is Cirrus Logic Inc. (CRUS). Currently, CRUS is trading at $72.13 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $82.38.

To add more color to this target, the company’s high over the last year is $91.63 and the low is $39.56. Over the last 52 weeks, CRUS is down -21.28% while the S&P 500 is down -0.75%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CRUS reported a profit of $146.24 million. Cirrus Logic Inc. also saw revenues increase to $279.29 million. In addition, CRUS has free cash flow of $280.16 million as of 03-2020 The company’s EBITDA came in at $22.84 million which compares well with its peers.

CRUS booked profit margins of 12.40%, its Return on Equity (ROE) is 13.30%, and its Return on Assets is 10.10%. All told, it is clear that, CRUS needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CRUS has a short ratio of 2.13 and outstanding shares of 58.53M.

Company Outlook

CRUS has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.72 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.64. Cirrus Logic Inc. CRUS also noted assets of $1.59 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CRUS has historically followed its peers on positive news.

All told, Cirrus Logic Inc. CRUS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CRUS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Cirrus Logic Inc. CRUS is now commanding a market cap of 4.22B and a float of 57.96M. CRUS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CRUS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CRUS, either long or short, and we have not been compensated for this article.

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