Cree Inc. (CREE) Stock Rating Lowered by Zacks Investment Research
Cree Inc. (NASDAQ:CREE) was downgraded by Zacks Investment Research 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. “
Several other research firms also recently commented on CREE. Deutsche Bank AG increased their price objective on Cree from $23.00 to $26.00 and gave the company a “hold” rating in a report on Friday, July 15th. Needham & Company LLC reissued a “hold” rating on shares of Cree in a report on Sunday, July 17th. Cowen and Company reissued a “hold” rating on shares of Cree in a report on Sunday, July 17th. Canaccord Genuity reissued a “hold” rating and issued a $24.00 price objective (up previously from $19.00) on shares of Cree in a report on Sunday, July 17th. Finally, Northland Securities downgraded Cree from an “outperform” rating to a “market perform” rating in a report on Wednesday, August 17th. Three analysts have rated the stock with a sell rating, twelve have given a hold rating and four have given a buy rating to the stock. Cree currently has a consensus rating of “Hold” and an average price target of $32.67.
Shares of Cree (NASDAQ:CREE) opened at 24.98 on Monday. The firm has a 50-day moving average of $24.64 and a 200 day moving average of $25.21. The company’s market cap is $2.51 billion. Cree has a one year low of $22.10 and a one year high of $32.92.
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 consensus estimate of $0.20 by $0.01. The company 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 company’s quarterly revenue was up 1.6% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.19) EPS. Equities research analysts anticipate that Cree will post $0.56 EPS for the current year.
In other Cree news, Director John B. Replogle bought 5,000 shares of the firm’s stock in a transaction on Thursday, August 18th. The shares were purchased at an average price of $23.33 per share, for a total transaction of $116,650.00. Following the completion of the transaction, the director now directly owns 35,123 shares in the company, valued at approximately $819,419.59. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 1.30% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Group LTD boosted its position in Cree by 30.4% in the first quarter. BlackRock Group LTD now owns 77,733 shares of the LED producer’s stock worth $2,262,000 after buying an additional 18,102 shares in the last quarter. Nuveen Asset Management LLC raised its stake in shares of Cree by 95.3% in the first quarter. Nuveen Asset Management LLC now owns 80,946 shares of the LED producer’s stock worth $2,356,000 after buying an additional 39,500 shares during the last quarter. Creative Planning raised its stake in shares of Cree by 44.4% in the second quarter. Creative Planning now owns 10,529 shares of the LED producer’s stock worth $257,000 after buying an additional 3,235 shares during the last quarter. HBK Investments L P purchased a new stake in shares of Cree during the first quarter worth approximately $324,000. Finally, Invictus RG raised its stake in shares of Cree by 1,242.2% in the first quarter. Invictus RG now owns 11,006 shares of the LED producer’s stock worth $320,000 after buying an additional 10,186 shares during the last quarter. Hedge funds and other institutional investors own 83.26% of the company’s stock.
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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