Cree (CREE) Downgraded by Zacks Investment Research

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Zacks Investment Research lowered shares of Cree (NASDAQ:CREE) from a buy rating to a hold rating in a research report released on Tuesday.

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 research analysts have also issued reports on CREE. BidaskClub lowered Cree from a strong-buy rating to a buy rating in a report on Friday, June 22nd. Piper Jaffray Companies reissued a hold rating and issued a $45.00 target price on shares of Cree in a report on Wednesday, April 25th. ValuEngine lowered Cree from a buy rating to a hold rating in a report on Tuesday, May 1st. Williams Capital reissued a hold rating and issued a $38.00 target price (up previously from $36.00) on shares of Cree in a report on Wednesday, March 7th. Finally, Goldman Sachs Group raised Cree from a sell rating to a neutral rating and boosted their target price for the company from $39.00 to $41.76 in a report on Wednesday, March 7th. Three investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and six have issued a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $37.83.

Shares of Cree opened at $41.57 on Tuesday, according to MarketBeat. The company has a quick ratio of 2.46, a current ratio of 3.74 and a debt-to-equity ratio of 0.15. Cree has a twelve month low of $20.50 and a twelve month high of $50.67.

Cree (NASDAQ:CREE) last issued its quarterly earnings data on Tuesday, April 24th. The LED producer reported $0.04 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.01 by $0.03. The company had revenue of $355.96 million during the quarter, compared to analysts’ expectations of $347.38 million. Cree had a negative return on equity of 1.10% and a negative net margin of 17.50%. The firm’s revenue for the quarter was up 4.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.01 earnings per share. research analysts predict that Cree will post -0.24 EPS for the current year.

In related news, insider Michael E. Mcdevitt sold 7,000 shares of the company’s stock in a transaction on Thursday, April 26th. The stock was sold at an average price of $39.36, for a total transaction of $275,520.00. Following the transaction, the insider now owns 169,924 shares of the company’s stock, valued at $6,688,208.64. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 1.10% of the company’s stock.

A number of hedge funds have recently made changes to their positions in the stock. Profund Advisors LLC grew its holdings in Cree by 3.4% during the first quarter. Profund Advisors LLC now owns 37,088 shares of the LED producer’s stock worth $1,495,000 after acquiring an additional 1,203 shares during the period. Envestnet Asset Management Inc. grew its holdings in Cree by 6.9% during the fourth quarter. Envestnet Asset Management Inc. now owns 25,658 shares of the LED producer’s stock worth $953,000 after acquiring an additional 1,666 shares during the period. Summit Trail Advisors LLC grew its holdings in Cree by 20.7% during the first quarter. Summit Trail Advisors LLC now owns 13,179 shares of the LED producer’s stock worth $337,000 after acquiring an additional 2,259 shares during the period. First Trust Advisors LP grew its holdings in Cree by 2.3% during the fourth quarter. First Trust Advisors LP now owns 114,412 shares of the LED producer’s stock worth $4,249,000 after acquiring an additional 2,617 shares during the period. Finally, Icon Wealth Partners LLC acquired a new position in Cree during the fourth quarter worth $110,000. 98.94% of the stock is currently owned by hedge funds and other institutional investors.

Cree Company Profile

Cree, Inc provides lighting-class light emitting diode (LED), lighting, and semiconductor products for power and radio-frequency (RF) applications in the United States, China, Europe, South Korea, Japan, Malaysia, Taiwan, and internationally. Its Lighting Products segment offers LED lighting systems and bulbs for use in settings, such as office and retail space, restaurants and hospitality, schools and universities, manufacturing, healthcare, airports, municipal, residential, street lighting and parking structures, and other applications.

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