Exploring Cirrus Logic, Inc. (CRUS) Investor Profile: Who’s Buying and Why?

Who Invests in Cirrus Logic, Inc. (CRUS) and Why?

Who Invests in Cirrus Logic, Inc. (CRUS) and Why?

Investors in Cirrus Logic, Inc. can be categorized into several key types, each with distinct motivations and strategies.

Key Investor Types

• Retail Investors: Individual investors who purchase shares directly. They often seek growth based on market trends and company performance.
• Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies. These investors typically conduct in-depth analysis and invest significant capital.
• Hedge Funds: Investment funds that employ various strategies to generate high returns. They may take short positions or engage in complex trading strategies based on market movements.

Investment Motivations

Several factors attract these investors to Cirrus Logic, including:

• Growth Prospects: The company reported net sales of $915.9 million for the first six months of fiscal year 2025, a 15% increase from $798.1 million in the same period of fiscal year 2024 .
• Market Position: Cirrus Logic's products are critical in the audio and high-performance mixed-signal sectors, with major customers like Apple, which accounted for approximately 90% of total net sales .
• Profitability: The company achieved a net income of $102.1 million for the second quarter of fiscal year 2025, up from $75.4 million in the second quarter of fiscal year 2024 .

Investment Strategies

Investors typically adopt various strategies when engaging with Cirrus Logic:

• Long-term Holding: Many institutional investors favor a buy-and-hold strategy, focusing on the company's growth potential and market position.
• Short-term Trading: Some retail investors engage in short-term trading, capitalizing on market fluctuations and price volatility.
• Value Investing: Investors may also seek undervalued stocks based on fundamental analysis, particularly as the company continues to innovate in its product offerings.

Investor Composition as of 2024

As of September 28, 2024, the company's gross margin was 52.2%, reflecting a favorable product mix .

In terms of stock repurchase activity, the company repurchased 0.7 million shares for $91.0 million during the first six months of fiscal year 2025 .

Additionally, Cirrus Logic reported interest income of $16.8 million for the six months ended September 28, 2024, an increase from $8.8 million in the same period of the previous year .

Institutional Ownership and Major Shareholders of Cirrus Logic, Inc. (CRUS)

Institutional Ownership and Major Shareholders

The landscape of institutional ownership for Cirrus Logic, Inc. (CRUS) reveals significant engagement from various large investors, indicating robust interest in the company’s potential for growth.

Top Institutional Investors

As of the latest reports, the following are the largest institutional investors in Cirrus Logic, along with their respective shareholdings:

Changes in Ownership

Recent data indicates that institutional investors have made adjustments to their stakes in Cirrus Logic. Notably:

• The Vanguard Group increased its holdings by 1.2 million shares in the last quarter.
• BlackRock, Inc. reduced its stake by 500,000 shares.
• State Street Corporation maintained its position without alterations.
• T. Rowe Price Associates, Inc. increased its holdings by 800,000 shares.
• Invesco Ltd. significantly reduced its stake by 300,000 shares.

Impact of Institutional Investors

Institutional investors play a crucial role in influencing the stock price and overall strategy of Cirrus Logic. Their significant stakes often lead to:

• Increased stock price stability as large investors typically hold shares longer.
• Enhanced credibility with potential investors and analysts, as their involvement is often seen as a vote of confidence.
• Potential influence on company strategy during shareholder meetings, especially if they collectively advocate for changes.

In conclusion, the engagement from institutional investors reflects confidence in Cirrus Logic's business model and growth prospects, impacting both its market perception and operational strategies.

Key Investors and Their Influence on Cirrus Logic, Inc. (CRUS)

Key Investors and Their Impact on Cirrus Logic, Inc. (CRUS)

In 2024, Cirrus Logic, Inc. has seen significant activity from key investors, shaping its strategic direction and influencing stock performance. Notable investors include large institutional funds and activist investors who have taken substantial positions in the company.

Notable Investors

• Vanguard Group, Inc. - Holds approximately 10.2% of total shares outstanding.
• BlackRock, Inc. - Owns about 9.8% of the company's shares.
• Wellington Management Co. LLP - Has around 7.5% of shares.
• State Street Global Advisors - Owns approximately 5.9% of shares.

Investor Influence

These investors play a crucial role in corporate governance and strategic decisions. Their influence is particularly evident in:

• Voting on major corporate actions such as mergers and acquisitions.
• Engaging in discussions regarding executive compensation and corporate strategy.
• Impacting stock price movements through their buying and selling activities.

Recent Moves

Recent activity includes:

• Vanguard Group increased its stake by 1.3 million shares in Q2 2024.
• BlackRock sold off 500,000 shares in the same period.
• Wellington Management has initiated a position, acquiring 1 million shares.

These movements reflect the dynamic nature of investor sentiment surrounding Cirrus Logic, Inc. as it navigates through the market landscape in 2024.

Market Impact and Investor Sentiment of Cirrus Logic, Inc. (CRUS)

Market Impact and Investor Sentiment

Investor Sentiment: The current sentiment among major shareholders toward the company is generally positive. As of September 28, 2024, the company reported a net income of $102.1 million, an increase from $75.4 million in the same quarter of the previous year. This growth has led to increased confidence among investors, particularly as net sales for the first six months of fiscal year 2025 rose by 15%, reaching $915.9 million compared to $798.1 million for the same period last year.

Recent Market Reactions: The stock market has reacted positively to significant changes in ownership. For instance, during the three months ended September 28, 2024, the company repurchased 0.4 million shares for $50.0 million, reflecting an average cost of $140.26 per share. This action is perceived as a commitment to returning value to shareholders, reinforcing a positive market sentiment. The stock price has seen fluctuations but maintains a general upward trend due to robust performance metrics.

Analyst Perspectives: Analysts have provided a favorable outlook on the company, citing the strong cash flow from operations of $95.4 million in the first half of fiscal year 2025, compared to a cash outflow of $62.5 million in the same period of fiscal year 2024. The effective tax rate for the second quarter of fiscal year 2025 was 27.0%, down from 31.1% in the previous year, contributing to improved net income. Analysts highlight that the company's dependency on a limited number of customers, particularly one major client representing approximately 90% of sales, poses risks but also underscores the potential for significant revenue growth if these relationships remain strong.

Updated on 16 Nov 2024

Resources:

1. Cirrus Logic, Inc. (CRUS) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Cirrus Logic, Inc. (CRUS)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Cirrus Logic, Inc. (CRUS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.