Cree, Inc. (CREE)’s Vital Spot Is 30.52% Away

EVP, GM LED Emerson David Todd sold 22,500 shares in Cree, Inc. (NASDAQ:CREE) for $136,597 in transaction occurred on 2018/08/29. After making this transaction, the EVP, GM LED owns a direct stake of 1,031,400 shares, worth $6,279,364, as per the last closing price. On 2018/04/26 Mcdevitt Michael E, EXECUTIVE VICE PRESIDENT & CFO at CREE, dumped 7,000 shares at an average price of $39.36 per share. The selling total is valued at $7,542,620.

Separately, it had been reported that some other CREE insiders also took part of the insider trading activity. Director, Replogle John B had invested in 10,000 shares for $64,043 through a trade on 2017/04/27. Following this activity, the insider holds 221,100 shares worth $2,944,057 as of recent close. Wall Street’s most bullish Cree, Inc. (NASDAQ:CREE) analysts are predicting the share price to blow past $60 per share during the next 12 months. The current median share price forecast by them is $46, suggesting that the stock could increase 0.07% in that time frame. The average price target of $47.91 calls for a nearly 4.22% increase in the stock price.

Cree, Inc. (NASDAQ:CREE) reaches $4.91B market cap as shares jumped 1.43% in recent session. It closed at $45.97, after slipping as low as $44.49 through the day. The shares were pushed to an intraday high Thursday at $47.5. Trading activity significantly improved as the volume at ready counter increased to 4,098,423 shares versus 1,621,720 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,486,483 shares. The stock is now 49.35% above against its bear-market low of $30.78 on February 06, 2018. It has retreated -12.64% since it’s 52-week high of $51.78 reached in August. Now the market price is up 32.17% on the year and up 23.77% YTD.

CREE’s 50 day simple moving average (SMA 50) price is $39.67 and its 200-day simple moving average (SMA 200) price is $42.94. The company’s stock currently has a total float of 101.76M shares. Its weekly volatility is hovering around 4.14% and felt 4.08% volatility in price over a month. On the upside, the share price will test short term resistance at around $47.48. On a downside, the stock is likely to find some support, which begins at $44.47. The failure to get near-term support could push it to $42.98.

It had seen a negative analyst call from JP Morgan, which downgraded the stock from Neutral to Underweight on November 30. Analysts at Goldman, shed their negative views on November 09 by lifting it fromNeutral to Buy. The stock won favor of JP Morgan analysts who expressed their confidence in it using an upgrade from Underweight to Neutral on October 09. ROTH Capital analysts came out with bullish views on September 11 when the call was made. They think the stock is now Buy compared to to their prior call for Neutral.

Moreover, it trades for 36.54 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.14x price/book and 3.18x price/sales. Compared to others, Cree, Inc. is in a different league with regards to profitability, having net margins of -17.6%. To put some perspective around this, the industry’s average net margin is 21.22%. CREE’s ROE is -12.6%, which is also considerably worse than the industry’s ROE of 9.21%. It’s also very liquid in the near term, with a current ratio of 4.2. The stock has a debt/capital of 0.21.

Shares of Cree, Inc. (CREE) have gained 20.7% since the company’s Jun-18 earnings report. Over the past 12 fiscal quarters, Cree, Inc. (NASDAQ:CREE) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 3 quarters (25%), whereas at 0 occasion EPS met analyst expectations. CREE last reported earnings on October 16, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.22 per share, -99.73% change on the same period last year. That was better than consensus for $0.12. Revenue for the recent quarter stood at $408.27 million, up 13% on last year and above the $407.32 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $392.5 million to $405 million, which should be compared with $0 generated last year.