Cirrus Logic (CRUS) Stock Plunges on Apple Fears
NEW YORK (TheStreet) -- Cirrus Logic (CRUS) - Get Report stock is sliding by 9.16% to $29.26 in late afternoon trading on Tuesday, after Credit Suisse released a negative note about the chip maker's largest customer, Apple (AAPL).
Apple contributed to roughly 63% of Cirrus Logic's revenue in the second quarter, according to a regulatory filing, MarketWatch reports.
This morning, Credit Suisse lowered its fiscal 2016 iPhone forecast to 222 million from 242 million, and noted that the iPhone maker cut up to 10% of its hardware component orders.
Shares of Apple are down by 3.43% to $116.43 in afternoon trading.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio, commented on Apple this afternoon in a post on RealMoney.com. Here is a snippet of what Cramer had to say:
I have said quite frequently that analysts will make calls on weak supply chain data or negative channel checks and they have caused people to dump the stock only to have to buy it back higher when the stories turn out to not be true or the narrative changes and orders come roaring back strong.
I find this particular channel check hard to swallow because we have just heard from three key Apple smartphone suppliers: Cirrus Logic, Qorvo (QRVO) and Skyworks (SWKS) and they each indicated that business is very strong. No company is allowed to talk about Apple specifically. Apple forbids suppliers from mentioning Apple's name lest they lose the business. Yet, you know from the body language that these firms are talking about Apple when they cite robust orders.
-Jim Cramer "This Apple Channel Check Is Hard to Swallow" Originally Published on 11/10/2015 on Real Money.
Want more like this from Jim Cramer BEFORE your stock moves? Learn more about Real Money now!
Separately, TheStreet Ratings team rates CIRRUS LOGIC INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate CIRRUS LOGIC INC (CRUS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, attractive valuation levels and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: CRUS
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.