Zacks Investment Research downgraded shares of Cree Inc. (NASDAQ:CREE) from a hold rating to a sell rating in a report issued on Monday.
According to Zacks, “Cree, Inc. is a market-leading innovator and manufacturer of semiconductors that enhance the value of solid-state lighting, power and communications products by significantly increasing their energy performance and efficiency. Key to Cree’s market advantage is its world-class materials expertise in silicon carbide and gallium nitride for chips and packaged devices that can handle more power in a smaller space while producing less heat than other available technologies, materials and products. Cree drives its increased performance technology into multiple applications, including exciting alternatives in brighter and more-tunable light for general illumination, backlighting for more-vivid displays, optimized power management for high-current switch-mode power supplies and variable-speed motors, and more-effective wireless infrastructure for data and voice communications. Cree customers range from innovative lighting-fixtures makers to defense-related federal agencies. “
A number of other analysts also recently commented on CREE. Deutsche Bank AG increased their price objective on shares of Cree from $23.00 to $26.00 and gave the company a hold rating in a report on Friday, July 15th. Canaccord Genuity reissued a hold rating and issued a $24.00 price target (up previously from $19.00) on shares of Cree in a research note on Sunday, July 17th. Needham & Company LLC reissued a hold rating on shares of Cree in a research note on Sunday, July 17th. Cowen and Company reissued a hold rating on shares of Cree in a research note on Sunday, July 17th. Finally, Goldman Sachs Group Inc. dropped their price target on shares of Cree from $20.00 to $18.00 and set a sell rating for the company in a research note on Wednesday, August 17th. Three research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and four have given a buy rating to the company’s stock. The stock has an average rating of Hold and a consensus target price of $32.67.
Cree (NASDAQ:CREE) opened at 24.64 on Monday. The company has a 50-day moving average price of $24.71 and a 200 day moving average price of $25.21. Cree has a 52-week low of $22.10 and a 52-week high of $32.92. The stock’s market cap is $2.48 billion.
Cree (NASDAQ:CREE) last released its quarterly earnings data on Tuesday, August 16th. The LED producer reported $0.19 EPS for the quarter, missing the Zacks’ consensus estimate of $0.20 by $0.01. The business earned $388.40 million during the quarter, compared to analyst estimates of $385.83 million. Cree had a negative net margin of 1.25% and a positive return on equity of 1.81%. The firm’s revenue was up 1.6% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.19) EPS. On average, analysts expect that Cree will post $0.56 earnings per share for the current year.
In other news, Director John B. Replogle acquired 5,000 shares of Cree stock in a transaction dated Thursday, August 18th. The shares were acquired at an average cost of $23.33 per share, for a total transaction of $116,650.00. Following the acquisition, the director now owns 35,123 shares of the company’s stock, valued at $819,419.59. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 1.30% of the stock is currently owned by insiders.
Several large investors have recently made changes to their positions in the stock. Pacer Advisors Inc. purchased a new position in Cree during the second quarter worth $143,000. LS Investment Advisors LLC raised its position in Cree by 68.6% in the second quarter. LS Investment Advisors LLC now owns 6,029 shares of the LED producer’s stock worth $147,000 after buying an additional 2,454 shares in the last quarter. Clean Yield Group raised its position in Cree by 12.1% in the second quarter. Clean Yield Group now owns 6,500 shares of the LED producer’s stock worth $159,000 after buying an additional 700 shares in the last quarter. Seven Eight Capital LLC raised its position in Cree by 17.6% in the second quarter. Seven Eight Capital LLC now owns 6,683 shares of the LED producer’s stock worth $163,000 after buying an additional 1,000 shares in the last quarter. Finally, Advisory Services Network LLC raised its position in Cree by 6.6% in the third quarter. Advisory Services Network LLC now owns 6,426 shares of the LED producer’s stock worth $165,000 after buying an additional 400 shares in the last quarter. Institutional investors and hedge funds own 83.26% of the company’s stock.
Cree Company Profile
Cree, Inc is a manufacturer of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. The Company’s products are focused for applications, such as indoor and outdoor lighting, video displays, transportation, electronic signs and signals, power supplies, inverters and wireless systems.