Cirrus Logic Plunges 11.61% as Investors Trim Holdings

On April 11, 2025, Cirrus Logic's stock experienced a significant drop of 11.61% in pre-market trading, reflecting a notable decline in investor sentiment.

Recent developments have impacted Cirrus Logic's stock performance. Corebridge Financial Inc. and California Public Employees Retirement System both reduced their stakes in the company, which may have contributed to the market's negative reaction. These institutional investors' decisions to trim their holdings could signal concerns about the company's future prospects or market conditions.

Cirrus Logic's financial performance in the third quarter of fiscal year 2025 was robust, with revenue reaching $555.7 million, surpassing the company's guidance. The strong demand for products used in smartphones and laptops, including new-generation custom boosted amplifiers and smart codecs, drove this growth. The company's inclusion in the Intel Arrow Lake reference design and the expansion of its content across various devices further bolstered its market position.

Despite the positive financial results, the recent stock decline suggests that investors may be focusing on potential risks and uncertainties. The company's forward-looking statements, which include expectations for future revenue growth and operating profit, are subject to various risks and uncertainties. These factors, along with the reduction in institutional holdings, could be influencing the current market sentiment.