Cypress Semiconductor Corporation (NASDAQ:CY) announced that its CEO, T.J. Rodgers, will step down this week and that a search—both internal and external—would be launched to replace him. In the interim, daily operational activities will be taken over by an Office of the CEO comprised of four current Cypress EVPs: Hassane El-Khoury (EVP, Programmable Systems Division), Dana Nazarian (EVP, Memory Products Division), Joe Rauschmayer (EVP, Manufacturing) and Thad Trent (CFO). Rodgers will remain on the Cypress Board and become a project leader working on key technical projects.
Rodgers said, “This March, Valeta and I celebrated my 68th birthday in Mexico. Upon reflection, while I am still passionately interested in Element 14, silicon, I have always planned not to be spending most of my time in the last decade of my career immersed in the details of the operations, including those of the 7,000-person company that Cypress has become. And, to be completely candid, the board and even the executive staff have urged me to bring new blood into operations. Thus, the first-quarter 2016 report, my 120th as Cypress’s CEO, will be my last. More importantly to me, I will now be able to work full time on the technology that has fascinated me since my mother first kindled my interest in electronics when I was a fifth-grader.”
Rodgers continued, “I have always reserved about 30 percent of my time to work on technology and one key project. This activity adds value to the company and remains of high interest to me at this stage of my career. In the future Cypress management will be able to assign a key project to me and count on it getting done right.” (Original Source)
Shares of Cypress Semiconductor closed yesterday at $9.05, up $0.16 or 1.80%. CY has a 1-year high of $14.19 and a 1-year low of $6.30. The stock’s 50-day moving average is $8.49 and its 200-day moving average is $8.82.
On the ratings front, Cypress has been the subject of a number of recent research reports. In a report issued on March 11, Oppenheimer analyst Shawn Simmons reiterated a Buy rating on CY, with a price target of $12, which implies an upside of 32.6% from current levels. Separately, on March 8, Credit Suisse’s John Pitzer reiterated a Hold rating on the stock and has a price target of $8.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Shawn Simmons and John Pitzer have a total average return of -9.4% and 12.5% respectively. Simmons has a success rate of 42.9% and is ranked #3344 out of 3839 analysts, while Pitzer has a success rate of 63.6% and is ranked #143.
Overall, 3 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $9.40 which is 3.9% above where the stock closed yesterday.
Cypress Semiconductor Corp. manufactures, designs, develops and markets digital and mixed signal integrated circuits. Its offerings include the flagship Programmable System-on-Chip families and derivatives such as CapSense touch sensing and TrueTouch solutions for touchscreens. The company operates through four reportable segments: Memory Products Division, Data Communications Division, Programmable Systems Division and Emerging Technologies Division.