Engaging In Insider Activity, Carl Jackson Alberty At Cirrus Logic Exercises Options

In a new SEC filing on May 22, it was revealed that Alberty, VP at Cirrus Logic CRUS, executed a significant exercise of company stock options.

What Happened: A notable Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission revealed that Alberty, VP at Cirrus Logic, exercised stock options for 837 shares of CRUS, resulting in a transaction value of $33,863.

The Thursday morning update indicates Cirrus Logic shares up by 0.36%, currently priced at $115.03. At this value, Alberty's 837 shares are worth $33,863.

Discovering Cirrus Logic: A Closer Look

Cirrus Logic Inc is a provider of integrated circuits for audio and voice signal processing applications. The firm's products are organized into two streams: portable audio products, and non-portable audio and other products. These products include analog and mixed-signal components targeting mobile devices, smart homes, and applications in the automotive, energy, and industrial markets. Roughly half of the firm's revenue is generated in China, with the rest coming from the United States, Europe, South Korea, and countries across the world.

Cirrus Logic: A Financial Overview

Decline in Revenue: Over the 3 months period, Cirrus Logic faced challenges, resulting in a decline of approximately -39.93% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: With a high gross margin of 51.8%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Cirrus Logic's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.83.

Debt Management: Cirrus Logic's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.09.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The P/E ratio of 23.39 is lower than the industry average, implying a discounted valuation for Cirrus Logic's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 3.59 is lower than the industry average, implying a discounted valuation for Cirrus Logic's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 16.26, Cirrus Logic presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Understanding the Significance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Cirrus Logic's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.