Cree (CREE) Shares Gap Down Following Weak Earnings

Cree, Inc. (NASDAQ:CREE) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $34.16, but opened at $35.02. Cree shares last traded at $35.02, with a volume of 3045169 shares traded.

The LED producer reported ($0.01) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.01 by ($0.02). Cree had a negative return on equity of 0.44% and a negative net margin of 8.42%. The company had revenue of $367.87 million for the quarter, compared to analysts’ expectations of $349.62 million. During the same quarter last year, the company earned $0.30 EPS. Cree’s revenue for the quarter was down 8.3% compared to the same quarter last year.

CREE has been the topic of several recent research reports. Deutsche Bank set a $45.00 price target on Cree and gave the stock a “buy” rating in a report on Tuesday, December 12th. Tigress Financial downgraded Cree from a “strong-buy” rating to a “neutral” rating in a report on Tuesday. Zacks Investment Research downgraded Cree from a “hold” rating to a “sell” rating in a report on Friday, December 15th. Bank of America upped their price target on Cree from $31.00 to $32.00 and gave the stock a “neutral” rating in a report on Wednesday, October 18th. Finally, JMP Securities set a $41.00 price objective on Cree and gave the company a “buy” rating in a report on Wednesday, October 18th. Eight research analysts have rated the stock with a sell rating, ten have issued a hold rating and two have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average price target of $28.18.

Several institutional investors and hedge funds have recently added to or reduced their stakes in CREE. Riverhead Capital Management LLC increased its holdings in shares of Cree by 75.0% in the 2nd quarter. Riverhead Capital Management LLC now owns 5,426 shares of the LED producer’s stock valued at $134,000 after acquiring an additional 2,326 shares during the last quarter. Advisor Group Inc. increased its holdings in shares of Cree by 11.5% in the 2nd quarter. Advisor Group Inc. now owns 8,175 shares of the LED producer’s stock valued at $197,000 after acquiring an additional 846 shares during the last quarter. Garner Asset Management Corp purchased a new position in shares of Cree in the 3rd quarter valued at about $204,000. ETRADE Capital Management LLC purchased a new position in shares of Cree in the 3rd quarter valued at about $208,000. Finally, Shelton Capital Management purchased a new position in Cree during the 3rd quarter worth approximately $213,000. Institutional investors and hedge funds own 98.76% of the company’s stock.

The stock has a market capitalization of $3,440.00, a P/E ratio of -28.70 and a beta of 1.26. The company has a quick ratio of 3.61, a current ratio of 4.82 and a debt-to-equity ratio of 0.06.

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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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