Pacific Crest Pounds Cirrus Logic, Inc., Skyworks Solutions Inc

Apple Inc. (NASDAQ:AAPL) suppliers Cirrus Logic, Inc. (NASDAQ:CRUS) and Skyworks Solutions Inc (NASDAQ:SWKS) are tanking on negative analyst attention

by Alex Eppstein

Published on Jul 5, 2016 at 12:24 PM

Apple Inc. (NASDAQ:AAPL) suppliers Cirrus Logic, Inc. (NASDAQ:CRUS) and Skyworks Solutions Inc (NASDAQ:SWKS) are getting wrecked today. Specifically, the semiconductor stocks are falling victim to Pacific Crest, which weighed in bearishly on the chipmakers. (Meanwhile, AAPL is dealing with its own analyst-induced headwinds.) Below, we'll take a closer look at CRUS and SWKS, from their technicals, to their options pits, and beyond.


CRUS 
was last seen 6.7% lower at $35.51, after Pacific Crest downwardly revised its rating to "sector weight" from "overweight." This is a rare dose of negativity for the stock, considering eight of nine analysts have handed out a "buy" or better opinion, with not a single "sell" recommendation on the books.

There's even more optimism among options traders. During the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 1.48 calls for each put -- a ratio that ranks in the top quartile of its annual range.

Cirrus Logic, Inc. has earned the benefit of the doubt, too. Year-to-date, the semiconductor stock has advanced a market-beating 20%. And while today's sell-off is no laughing matter, shareholders may be able to take comfort in CRUS' 100-day moving average, which appears to be containing the stock's descent.

Meanwhile, sector peer SWKS has tumbled 6.5% to trade at $58.53. The stock is being hit hard by Pacific Crest's downgrade to "sector weight" from "overweight." More broadly speaking, though, just 20% of analysts rate the shares a "hold" or worse -- so, today's negative note represents a bearish exception to the bullish rule.

Optimism dominates within the options pits, too. SWKS sports a 10-day ISE/CBOE/PHLX call/put volume ratio of 2.18, with long calls more than doubling puts. What's more, this ratio ranks in the high 86th percentile of its annual range.

However, Skyworks Solutions Inc has done little to merit this glass-half-full approach. Year-to-date, the semiconductor stock has shed nearly 24% of its value, and has been stair-stepping its way lower since early April -- pressured in recent weeks by its descending 50-day moving average. As a result, SWKS could be vulnerable to additional downgrades.

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