On August 05, 2026, Cirrus Logic Inc CRUS shares fell by 3.1% to a current price of $129.42. Over the past 52 weeks, the stock has traded between a high of $180.42 and a low of $92.02, showcasing significant volatility. The recent price decline highlights a broader trend, as the stock has decreased by 11.5% over the past month.
- GF Valueâ„¢ verdict: The current price is $129.42, compared to a GF Valueâ„¢ of $117.10, indicating that the stock is 10.5% overvalued.
- GF Scoreâ„¢ of 80/100 suggests a strong overall assessment of the company's performance.
- Notable signal: Insiders have sold $5.9M in shares over the last three months, indicating a lack of buying interest from management.
Is CRUS Overvalued or Undervalued?
According to the GF Valueâ„¢, Cirrus Logic Inc is currently overvalued, trading at $129.42 compared to a fair value estimate of $117.10. This results in a 10.5% overvaluation, which presents a margin of safety that is absent for potential investors. The GF Valuation label indicates that the stock is deemed "Modestly Overvalued," implying that risks may outweigh rewards at this price level. GF Valueâ„¢ is a proprietary estimate of a stock's intrinsic value based on historical trading multiples, past growth, and future performance projections, providing a benchmark for assessing current market pricing.
The overvaluation signals caution for potential investors, as a significant price correction could occur if market conditions shift or if the company fails to meet expected growth targets. Investors need to evaluate whether the future performance of CRUS justifies its current market price, particularly in the context of the semiconductor industry's inherent volatility.
How Does CRUS's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 16.5x | 18.9x |
| Forward P/E | 14.0x | N/A |
The current P/E ratio of 16.5x is 13% below its 5-year median of 18.9x, indicating that CRUS is trading at a lower valuation compared to its historical averages. This P/E analysis aligns with the GF Valueâ„¢ verdict of modest overvaluation, suggesting that while the stock's earnings multiple is lower than historical norms, it still does not provide a compelling case for investment at the current price level.
What Does CRUS's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ measures a company's performance across various dimensions, including financial strength, profitability, growth, valuation, and momentum. Cirrus Logic Inc has a robust GF Scoreâ„¢ of 80/100, indicating solid fundamentals with notable strengths in financial strength and profitability. However, the growth rank is comparatively weaker at 3/10, suggesting limited growth prospects relative to peers.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 80/100 |
| Financial Strength | 10/10 |
| Profitability | 9/10 |
| Growth | 3/10 |
| Valuation | 6/10 |
| Momentum | 10/10 |
The strong ratings in financial strength (10/10) and profitability (9/10) suggest that Cirrus Logic is well-positioned in terms of its balance sheet and operational efficiency. However, the weak growth score of 3/10 indicates potential challenges in scaling and expanding revenue, which may affect future performance. The momentum rank of 10/10 highlights that the stock has shown strong recent performance, but this must be weighed against the potential risks of overvaluation.
What Are Gurus and Insiders Doing with CRUS?
Currently, seven gurus hold positions in Cirrus Logic Inc, with three adding to their stakes while five have trimmed their holdings in recent quarters. This mixed signal from the guru community suggests a divided sentiment among professional investors regarding the stock's future prospects.
Furthermore, insider activity has shown a concerning trend, as insiders sold $5.9M in shares over the last three months without any notable buying activity. This lack of confidence from company insiders may signal potential issues ahead, raising questions about the company's future performance and reinforcing the notion of caution for retail investors.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, Cirrus Logic Inc is currently overvalued at $129.42 with a fair value estimate of $117.10. The stock's performance metrics and insider selling further support this caution. Investors may want to consider these factors seriously before making any decisions regarding CRUS. For further details, you can visit the Cirrus Logic Inc CRUS stock page for a more comprehensive analysis.
Frequently Asked Questions
What is CRUS's GF Scoreâ„¢?
CRUS has a GF Scoreâ„¢ of 80/100, indicating a strong overall performance in terms of fundamentals.
Is CRUS overvalued or undervalued?
CRUS is currently overvalued, trading at a price of $129.42 compared to a GF Valueâ„¢ of $117.10.
What is CRUS's P/E ratio?
The P/E ratio for CRUS is 16.5x, which is below its 5-year median of 18.9x, indicating a lower valuation relative to historical norms.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
