Zacks Investment Research Downgrades Cree Inc. (CREE) to Sell
Cree Inc. (NASDAQ:CREE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors 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. “
Several other equities analysts also recently weighed in on the stock. Roth Capital initiated coverage on shares of Cree in a report on Thursday, August 25th. They set a “buy” rating and a $34.00 target price for the company. Northland Securities downgraded shares of Cree from an “outperform” rating to a “market perform” rating in a report on Wednesday, August 17th. Williams Capital initiated coverage on shares of Cree in a report on Friday, September 30th. They set a “hold” rating and a $23.00 target price for the company. Canaccord Genuity restated a “hold” rating on shares of Cree in a report on Friday, September 23rd. Finally, Goldman Sachs Group Inc. dropped their target price on shares of Cree from $20.00 to $18.00 and set a “sell” rating for the company in a report on Wednesday, August 17th. Three analysts have rated the stock with a sell rating, twelve have issued a hold rating and four have given a buy rating to the company. Cree has a consensus rating of “Hold” and an average price target of $32.67.
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Shares of Cree (NASDAQ:CREE) traded up 0.71% during trading on Monday, hitting $25.47. 403,907 shares of the stock traded hands. The company’s 50 day moving average is $24.57 and its 200 day moving average is $25.30. The firm’s market cap is $2.56 billion. Cree has a 52-week low of $22.10 and a 52-week high of $32.92.
Cree (NASDAQ:CREE) last posted its earnings results on Tuesday, August 16th. The LED producer reported $0.19 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.20 by $0.01. Cree had a negative net margin of 1.25% and a positive return on equity of 1.81%. The business had revenue of $388.40 million for the quarter, compared to analysts’ expectations of $385.83 million. During the same quarter last year, the business posted ($0.19) earnings per share. The business’s revenue was up 1.6% compared to the same quarter last year. On average, equities research analysts predict that Cree will post $0.56 EPS for the current year.
In related news, Director John B. Replogle purchased 5,000 shares of the company’s stock in a transaction that occurred on Thursday, August 18th. The stock was acquired at an average price of $23.33 per share, for a total transaction of $116,650.00. Following the completion of the purchase, the director now owns 35,123 shares in the company, valued at $819,419.59. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 1.30% of the company’s stock.
Several hedge funds have recently modified their holdings of the company. Russell Frank Co raised its stake in shares of Cree by 80.5% in the fourth quarter. Russell Frank Co now owns 68,802 shares of the LED producer’s stock worth $1,893,000 after buying an additional 30,694 shares during the period. Frontier Capital Management Co. LLC raised its stake in shares of Cree by 9.6% in the fourth quarter. Frontier Capital Management Co. LLC now owns 694,783 shares of the LED producer’s stock worth $18,530,000 after buying an additional 60,679 shares during the period. Retirement Systems of Alabama raised its stake in shares of Cree by 1.7% in the fourth quarter. Retirement Systems of Alabama now owns 374,909 shares of the LED producer’s stock worth $9,999,000 after buying an additional 6,413 shares during the period. California State Teachers Retirement System raised its stake in shares of Cree by 1.6% in the fourth quarter. California State Teachers Retirement System now owns 197,050 shares of the LED producer’s stock worth $5,255,000 after buying an additional 3,160 shares during the period. Finally, First Mercantile Trust Co. raised its stake in shares of Cree by 5.5% in the fourth quarter. First Mercantile Trust Co. now owns 12,156 shares of the LED producer’s stock worth $324,000 after buying an additional 629 shares during the period. 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.
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