Needham & Company LLC Reaffirms “Buy” Rating for Cypress Semiconductor (CY)
“At its 2019 Analyst Day, we believe Cypress demonstrated its laser-like focus on IoT and Auto – two markets that represent the fastest growing trends in the semiconductor industry, if not all of technology. By investing in connect (wireline/wireless) and compute (MCU, touch, flash), we believe Cypress is uniquely positioned to capitalize on these growing trends while also establishing a defensible position in these markets. Moreover, we are encouraged that the company has increased its long-term target, specifically raising its gross margin target to >50% (vs. 50%), which demonstrates the underlying mix shift to higher-margin & stickier products. Based on this new model, we could see long-term earnings of $1.50-$1.75, making the stock inexpensive at current valuations.”,” Needham & Company LLC’s analyst wrote.
Other equities research analysts also recently issued reports about the company. Zacks Investment Research downgraded Cypress Semiconductor from a hold rating to a sell rating in a research report on Wednesday, January 16th. Craig Hallum reissued a buy rating and set a $18.00 target price (down from $20.00) on shares of Cypress Semiconductor in a research report on Friday, February 1st. ValuEngine downgraded Cypress Semiconductor from a hold rating to a sell rating in a research report on Tuesday, January 22nd. Finally, BidaskClub downgraded Cypress Semiconductor from a buy rating to a hold rating in a research report on Saturday, December 1st. Three analysts have rated the stock with a sell rating, two have given a hold rating and nine have issued a buy rating to the company’s stock. Cypress Semiconductor currently has an average rating of Hold and an average target price of $17.32.
Cypress Semiconductor (NASDAQ:CY) last posted its quarterly earnings data on Thursday, January 31st. The semiconductor company reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.03. Cypress Semiconductor had a return on equity of 22.01% and a net margin of 14.28%. The company had revenue of $604.47 million during the quarter, compared to analysts’ expectations of $598.72 million. Equities analysts predict that Cypress Semiconductor will post 0.85 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 18th. Shareholders of record on Thursday, March 28th will be issued a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a yield of 2.86%. The ex-dividend date is Wednesday, March 27th. Cypress Semiconductor’s payout ratio is 37.93%.
In other Cypress Semiconductor news, EVP Sudhir Gopalswamy sold 12,598 shares of Cypress Semiconductor stock in a transaction that occurred on Friday, January 25th. The stock was sold at an average price of $14.00, for a total transaction of $176,372.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Hassane El-Khoury sold 4,300 shares of Cypress Semiconductor stock in a transaction that occurred on Wednesday, January 9th. The shares were sold at an average price of $13.00, for a total value of $55,900.00. The disclosure for this sale can be found here. Insiders have sold 19,898 shares of company stock worth $279,012 over the last ninety days. Company insiders own 0.43% of the company’s stock.
Large investors have recently bought and sold shares of the company. Resources Investment Advisors Inc. increased its stake in Cypress Semiconductor by 52.1% during the fourth quarter. Resources Investment Advisors Inc. now owns 2,003 shares of the semiconductor company’s stock worth $25,000 after acquiring an additional 686 shares during the last quarter. Wright Investors Service Inc. raised its position in shares of Cypress Semiconductor by 6.8% during the 4th quarter. Wright Investors Service Inc. now owns 13,036 shares of the semiconductor company’s stock valued at $166,000 after acquiring an additional 828 shares during the last quarter. PNC Financial Services Group Inc. raised its position in shares of Cypress Semiconductor by 7.6% during the 4th quarter. PNC Financial Services Group Inc. now owns 15,982 shares of the semiconductor company’s stock valued at $203,000 after acquiring an additional 1,135 shares during the last quarter. Private Advisor Group LLC raised its position in shares of Cypress Semiconductor by 7.6% during the 4th quarter. Private Advisor Group LLC now owns 16,426 shares of the semiconductor company’s stock valued at $209,000 after acquiring an additional 1,158 shares during the last quarter. Finally, ETF Managers Group LLC raised its position in shares of Cypress Semiconductor by 19.0% during the 4th quarter. ETF Managers Group LLC now owns 7,899 shares of the semiconductor company’s stock valued at $100,000 after acquiring an additional 1,259 shares during the last quarter. Institutional investors own 82.04% of the company’s stock.
Cypress Semiconductor Company Profile
Cypress Semiconductor Corporation designs, develops, manufactures, markets, and sells embedded system solutions worldwide. It operates in two segments, Microcontroller and Connectivity Division, and Memory Products Division. The Microcontroller and Connectivity Division provides microcontroller (MCU), analog, and wireless and wired connectivity solutions, including Traveo automotive MCUs; programmable system-on-chip and general-purpose MCUs; ARM Cortex-M4, -M3, and -M0+ MCUs; R4 CPUs; analog power management integrated circuits and energy harvesting solutions; CapSense capacitive-sensing controllers; TrueTouch touchscreens; Wi-Fi, Bluetooth, Bluetooth low energy, and ZigBee solutions; WICED development platform; and USB controllers comprising solutions for the USB-C and USB power delivery standards, as well as wireless Internet of things connectivity solutions.
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