CRUS Should I Buy
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Cirrus Logic Inc (CRUS) is not a strong buy for a beginner, long-term investor at this moment. While the company has shown solid financial growth in the latest quarter, the technical indicators suggest a bearish trend, and there is no clear signal from Intellectia Proprietary Trading Signals. Additionally, insider selling and a mixed sentiment from analysts further support a cautious approach. For now, holding the stock or waiting for a better entry point is recommended.
The MACD is negatively expanding, indicating a bearish momentum. RSI at 27.339 is in the oversold zone, suggesting potential for a rebound but no clear signal yet. Moving averages are converging, showing indecision in the market. The stock is trading below the pivot level of 140.363, with key support at 131.866 and resistance at 135.111. Overall, the technicals indicate a bearish trend.
Hedge funds are significantly increasing their positions in CRUS, with a 4772.36% increase in buying over the last quarter.
Strong financial performance in Q3 2026, with revenue up 4.48% YoY, net income up 20.95% YoY, and EPS up 26.07% YoY.
Apple, a major customer, has launched new products, potentially driving demand for Cirrus Logic's components.
Insiders are selling shares, with a 310.26% increase in selling activity over the last month.
Mixed analyst ratings, with one downgrade to Hold and a price target reduction to $
Gross margin dropped by 0.95% YoY, indicating slight pressure on profitability.
Bearish technical indicators and a -2.56% regular market price drop.
In Q3 2026, Cirrus Logic reported revenue of $580.62M, up 4.48% YoY. Net income increased to $140.31M, up 20.95% YoY, and EPS rose to $2.66, up 26.07% YoY. However, gross margin dropped slightly to 53.07%, down 0.95% YoY, which may indicate some cost pressures.
Analyst sentiment is mixed. Barclays raised its price target to $120 but maintained an Equal Weight rating, citing dependence on unit sales. Stifel raised its price target to $163 and maintained a Buy rating, highlighting strong fiscal Q3 results and a positive revenue outlook. Loop Capital downgraded the stock to Hold with a price target of $130, citing concerns over growth potential.
