Zacks Investment Research Upgrades Cypress Semiconductor (CY) to Hold

Cypress Semiconductor (NASDAQ:CY) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Monday.

According to Zacks, “Cypress is benefiting from its solid momentum across the industrial, automotive and enterprise markets. Further, accelerating design wins especially from new products and growing adoption of Cypress’ USB devices are major positives. Additionally, the company’s decision of divesting the NAND business will help it to focus more on the automotive, industrial and IoT markets, which will drive its business growth. Moreover, proper execution of Cypress’ 3.0 strategy, which is focused on delivering embedded solutions for consumer, automotive and industrial customers of all sizes will continue to act as a tailwind. However, softness in the consumer end market and sluggish Microcontroller and Connectivity Division remains a matter of concern for the company. Further, the ongoing trade tension between U.S. and China is an overhang. Notably, the stock has underperformed the industry it belongs to over a year.”

Several other research analysts also recently weighed in on the stock. Craig Hallum restated a “buy” rating and issued a $18.00 target price (down from $20.00) on shares of Cypress Semiconductor in a research note on Friday, February 1st. ValuEngine downgraded shares of Cypress Semiconductor from a “hold” rating to a “sell” rating in a research note on Tuesday, January 22nd. BidaskClub downgraded shares of Cypress Semiconductor from a “buy” rating to a “hold” rating in a research note on Saturday, December 1st. MKM Partners upped their target price on shares of Cypress Semiconductor to $18.00 and gave the company a “buy” rating in a research note on Friday, March 15th. Finally, Bank of America restated a “buy” rating and issued a $18.00 target price on shares of Cypress Semiconductor in a research note on Thursday, March 14th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and nine have assigned a buy rating to the company. The stock currently has an average rating of “Buy” and an average price target of $17.32.

CY opened at $15.27 on Monday. The company has a quick ratio of 1.17, a current ratio of 1.64 and a debt-to-equity ratio of 0.41. Cypress Semiconductor has a 52-week low of $11.75 and a 52-week high of $18.59. The company has a market cap of $5.52 billion, a price-to-earnings ratio of 13.16, a price-to-earnings-growth ratio of 1.80 and a beta of 1.93.

Cypress Semiconductor (NASDAQ:CY) last released its quarterly earnings data on Thursday, January 31st. The semiconductor company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.03. Cypress Semiconductor had a net margin of 14.28% and a return on equity of 22.01%. The company had revenue of $604.47 million during the quarter, compared to the consensus estimate of $598.72 million. On average, research analysts predict that Cypress Semiconductor will post 0.85 earnings per share for the current fiscal year.

In related news, EVP Trent Thad sold 17,000 shares of the company’s stock in a transaction on Friday, March 15th. The shares were sold at an average price of $15.35, for a total value of $260,950.00. Following the sale, the executive vice president now directly owns 340,117 shares of the company’s stock, valued at $5,220,795.95. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Hassane El-Khoury sold 4,300 shares of the company’s stock in a transaction on Wednesday, January 9th. The shares were sold at an average price of $13.00, for a total transaction of $55,900.00. The disclosure for this sale can be found here. Insiders sold 39,898 shares of company stock worth $585,532 over the last ninety days. 0.43% of the stock is currently owned by corporate insiders.

Several large investors have recently modified their holdings of CY. Loeb Partners Corp acquired a new stake in shares of Cypress Semiconductor in the 4th quarter worth about $25,000. Essex Savings Bank acquired a new stake in shares of Cypress Semiconductor in the 4th quarter worth about $25,000. Resources Investment Advisors Inc. increased its holdings in shares of Cypress Semiconductor by 52.1% in the 4th 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 period. PRW Wealth Management LLC acquired a new stake in shares of Cypress Semiconductor in the 4th quarter worth about $25,000. Finally, Dubuque Bank & Trust Co. acquired a new stake in shares of Cypress Semiconductor in the 4th quarter worth about $36,000. 81.53% of the stock is currently owned by institutional investors.

About Cypress Semiconductor

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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