Why Cirrus Logic Stock Plunged Today

Shares of Cirrus Logic (NASDAQ: CRUS) have plunged today, down by 12% as of 1:10 p.m. EDT, as the broader market has tanked and set off a 15-minute circuit breaker that halts trading. The drop came shortly after a Street analyst recommended that investors buy Cirrus Logic.

Cowen upgraded Cirrus Logic earlier this week to outperform while maintaining a price target of $88. Analyst Matthew Ramsay believes the company will enjoy expanded content in forthcoming Apple (NASDAQ: AAPL) iPhones. The Cupertino tech giant is Cirrus Logic's primary customer, representing 83% of revenue last quarter. Apple is expected to include 5G in its flagship iPhones this year, and Ramsay believes that Cirrus Logic will be a key beneficiary from the sales cycle.

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Source Fool.com