Cypress Semiconductor (CY) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research downgraded shares of Cypress Semiconductor (NASDAQ:CY) from a strong-buy rating to a sell rating in a research report released on Wednesday.

According to Zacks, “Cypress is currently suffering from intensifying competition in the semiconductor industry. This might put the company under pressure to lower its prices which will hurt its profitability.  Notably, shares of the company have underperformed the industry it belongs to over a year. However, Cypress remains optimistic on the proper execution of management’s strategy of delivering the complete package of connect, compute and store solutions. This is expected to aid the company’s performance across all the end markets. Further, the company’s exposure to IoT, automotive, and industrial markets remains positive. Nevertheless, the ongoing trade tensions between the United States and China pose a serious threat to the company’s growth in the near terms.”

Other analysts have also issued research reports about the stock. Barclays reaffirmed a hold rating and set a $18.00 target price on shares of Cypress Semiconductor in a report on Sunday, July 29th. TheStreet raised shares of Cypress Semiconductor from a c+ rating to a b rating in a report on Friday, July 27th. Needham & Company LLC reaffirmed a buy rating and set a $23.00 target price on shares of Cypress Semiconductor in a report on Friday, July 27th. Craig Hallum lifted their target price on shares of Cypress Semiconductor from $23.00 to $25.00 and gave the stock a buy rating in a report on Friday, July 27th. Finally, BidaskClub raised shares of Cypress Semiconductor from a hold rating to a buy rating in a report on Wednesday, July 11th. Three analysts have rated the stock with a sell rating, four have issued a hold rating and nine have given a buy rating to the company’s stock. The stock has an average rating of Hold and an average target price of $19.85.

CY stock traded up $0.12 during trading on Wednesday, hitting $14.50. The company had a trading volume of 96,196 shares, compared to its average volume of 6,405,519. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.37 and a quick ratio of 0.94. Cypress Semiconductor has a 12 month low of $14.16 and a 12 month high of $18.87. The stock has a market capitalization of $5.27 billion, a PE ratio of 24.19, a price-to-earnings-growth ratio of 0.85 and a beta of 1.98.

Cypress Semiconductor (NASDAQ:CY) last posted its quarterly earnings data on Thursday, July 26th. The semiconductor company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.25 by $0.08. Cypress Semiconductor had a net margin of 0.49% and a return on equity of 18.51%. The firm had revenue of $624.00 million during the quarter, compared to analysts’ expectations of $618.49 million. During the same quarter in the previous year, the company posted $0.21 EPS. Cypress Semiconductor’s revenue was up 5.1% on a year-over-year basis. equities analysts expect that Cypress Semiconductor will post 1.06 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 18th. Stockholders of record on Thursday, September 27th will be issued a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 3.03%. The ex-dividend date is Wednesday, September 26th. Cypress Semiconductor’s dividend payout ratio (DPR) is 73.33%.

In other news, EVP Sudhir Gopalswamy sold 3,000 shares of the business’s stock in a transaction on Monday, July 16th. The shares were sold at an average price of $16.50, for a total value of $49,500.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold a total of 11,017 shares of company stock valued at $177,676 in the last three months. 0.43% of the stock is owned by company insiders.

Several hedge funds have recently made changes to their positions in CY. Envestnet Asset Management Inc. boosted its stake in Cypress Semiconductor by 5.3% in the 1st quarter. Envestnet Asset Management Inc. now owns 64,404 shares of the semiconductor company’s stock worth $1,072,000 after purchasing an additional 3,219 shares during the period. Koch Industries Inc. boosted its stake in Cypress Semiconductor by 11.3% in the 1st quarter. Koch Industries Inc. now owns 34,135 shares of the semiconductor company’s stock worth $579,000 after purchasing an additional 3,463 shares during the period. OppenheimerFunds Inc. boosted its stake in Cypress Semiconductor by 9.4% in the 2nd quarter. OppenheimerFunds Inc. now owns 41,352 shares of the semiconductor company’s stock worth $644,000 after purchasing an additional 3,560 shares during the period. Louisiana State Employees Retirement System boosted its stake in Cypress Semiconductor by 3.9% in the 2nd quarter. Louisiana State Employees Retirement System now owns 96,800 shares of the semiconductor company’s stock worth $1,508,000 after purchasing an additional 3,600 shares during the period. Finally, MetLife Investment Advisors LLC boosted its stake in Cypress Semiconductor by 1.7% in the 2nd quarter. MetLife Investment Advisors LLC now owns 225,312 shares of the semiconductor company’s stock worth $3,510,000 after purchasing an additional 3,780 shares during the period. 82.15% of the stock is owned by institutional investors.

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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