Cree (NASDAQ:CREE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Friday.

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 brokerages also recently commented on CREE. ValuEngine upgraded shares of Cree from a “sell” rating to a “hold” rating in a report on Friday, September 1st. Deutsche Bank set a $45.00 price target on shares of Cree and gave the company a “buy” rating in a report on Tuesday. Bank of America cut their price target on shares of Cree from $28.00 to $26.00 and set a “neutral” rating on the stock in a report on Wednesday, August 23rd. Canaccord Genuity reiterated a “hold” rating and set a $23.00 price target on shares of Cree in a report on Wednesday, August 23rd. Finally, Roth Capital set a $29.00 price target on shares of Cree and gave the company a “buy” rating in a report on Tuesday, August 22nd. Seven equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and three have issued a buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $27.50.

Shares of Cree (CREE) traded up $1.09 during trading hours on Friday, reaching $39.13. 2,848,757 shares of the company traded hands, compared to its average volume of 1,381,156. Cree has a one year low of $20.50 and a one year high of $39.43. The company has a debt-to-equity ratio of 0.06, a quick ratio of 3.61 and a current ratio of 4.82.

Cree (NASDAQ:CREE) last issued its quarterly earnings results on Tuesday, October 17th. The LED producer reported $0.04 EPS for the quarter, meeting the consensus estimate of $0.04. The company had revenue of $360.00 million for the quarter, compared to the consensus estimate of $360.01 million. Cree had a negative net margin of 8.42% and a negative return on equity of 0.44%. The firm’s revenue was down 3.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.09 EPS. equities analysts forecast that Cree will post -0.27 EPS for the current year.

Institutional investors have recently added to or reduced their stakes in the business. Zacks Investment Management purchased a new stake in Cree in the 2nd quarter valued at about $1,069,000. Alliancebernstein L.P. boosted its position in Cree by 108.4% in the 2nd quarter. Alliancebernstein L.P. now owns 155,105 shares of the LED producer’s stock valued at $3,823,000 after buying an additional 80,681 shares during the period. BlackRock Inc. boosted its position in Cree by 26.8% in the 2nd quarter. BlackRock Inc. now owns 10,245,032 shares of the LED producer’s stock valued at $252,541,000 after buying an additional 2,164,847 shares during the period. Rhumbline Advisers boosted its position in Cree by 9.2% in the 2nd quarter. Rhumbline Advisers now owns 206,385 shares of the LED producer’s stock valued at $5,087,000 after buying an additional 17,342 shares during the period. Finally, Arizona State Retirement System boosted its position in Cree by 1.2% in the 2nd quarter. Arizona State Retirement System now owns 41,000 shares of the LED producer’s stock valued at $1,011,000 after buying an additional 500 shares during the period. 98.96% of the stock is owned by institutional investors.

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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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