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How Is Cypress Stock Performing Compared to Its Peers?

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Cypress outperforms the market 

In this series, we’ve seen that Cypress Semiconductor’s (CY) business transition has positioned it to tap the growth opportunity arising from industrial IoT (Internet of Things), automotive, and USB Type-C uses. Moreover, the speculation of Apple (AAPL) adopting Cypress’s USB Type-C technology spurred optimism among investors and analysts.

In the last 12 months, Cypress’s stock price rose 26%, outperforming the S&P 500 Index (SPY), which rose 14%. However, the stock underperformed its rivals Xilinx (XLNX) and Marvell Technologies (MRVL), which reported stock price gains of 36% and 47%, respectively, during the period. Cypress’s rivals have better profit margins and cash flows compared to Cypress.

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Cypress’s stock price momentum in 2017

Since the start of 2017, Cypress’s stock price has risen 28%. It is currently hovering around $14.90, which is on the higher end of its 52-week range of $9.63–$14.98. The stock is performing better than its peers in 2017. Xilinx’s and Marvell’s stock prices have risen 12% and 15.7%, respectively, year-to-date. 

Cypress’s stock price started its growth momentum after the company released better-than-expected 4Q16 earnings and guidance on January 19, 2017.

In the last one-month period, Cypress’s stock price rose 10%, and Xilinx’s and Marvell’s stock prices fell 0.8% and 6%, respectively. This shows that investor optimism is building for Cypress. The next big growth cycle is likely to come if the company reports better-than-expected earnings and guidance on July 27, 2017.

Insider trades

The insiders cashed out on the above stock price momentum. In 2Q17, insiders sold $813,603 of Cypress stock, of which $709,075 of the company’s stock was sold by Cypress’s chairman of the board, Eric Benhamou, on June 19, 2017.

Next, we’ll look at the upside potential of the stock in the short term using technical analysis.

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