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2 Semiconductor Stocks Sinking with Apple

Apple stock is pulling back and weighing on the broader market

Dec 26, 2017 at 10:25 AM
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Apple (AAPL) stock is falling today amid reports of disappointing iPhone X demand. This in turn is putting pressure on stocks of companies that work with the tech giant, including semiconductor concerns Cirrus Logic, Inc. (NASDAQ:CRUS) and Broadcom (NASDAQ:AVGO). Below we'll take a closer look at shares of CRUS and AVGO amid this pullback.

CRUS Stock Slides Again

Starting with Cirrus Logic, the security was last seen trading 2.3% lower at $51.20, but that's nothing new. The shares have been trending lower since their early June peak above $70, with the 100-day moving average blocking their last breakout attempt in October and November.

Options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been betting on more downside, too. CRUS has accumulated a 10-day put/call volume ratio of 1.96 across these exchanges, ranking just 4 percentage points from a 12-month high. In other words, put buying has been unusually popular in recent weeks.

Despite the equity's trouble on the charts, most analysts have remained bullish. By the numbers, 60% of covering brokerage firms have issued "strong buy" or "buy" ratings. A round of downgrades could be in store for the stock, which would result in even more headwinds.

Broadcom Finds Trendline Support

It's been a much different story for Broadcom, though. Even though the shares have dropped 2.5% today to trade at $255.91, they remain up 44% in 2017, touching a record high of $285.68 on Nov. 27. Plus, AVGO stock is again finding support at the 100-day moving average.

Not surprisingly, almost everyone's apparently bullish on the equity. For instance, Broadcom has a 10-day call/put volume ratio of 4.94 at the ISE, CBOE and PHLX, which is an annual high. Plus, all 19 covering analysts have "strong buy" ratings in place.

 

 

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