MMR

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

Jul 5, 2016 at 12:24 PM
facebook X logo linkedin


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.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
 (ad)