JP Morgan took its Cree [CREE] rating to the equivalent of Neutral, and the price target to 108.0, in a research note dated 2021-01-05. That figure represents around a 0.94% premium from where the company’s shares closed on Monday. Other analysts also revised their coverage, with JP Morgan’s analysts upgrading the shares from “a Neutral” rating to “an Overweight” rating in a research note to investors issued in mid November. Meanwhile, JP Morgan had raised its rating on CREE to “an Overweight” from the earlier “Neutral”, in a research note produced for clients November 19, 2020. In addition, there was a downgrade from ROTH Capital on August 19, 2020. The rater changed CREE from ”a Buy” to “a Neutral”.
Is Cree Inc. [NASDAQ:CREE] a Good Buy Right Now?
It should be noted that CREE technical indicators for short, intermediate as well as long term progress have placed an overall average of 100% as Buy. The average signal changed from 100% Buy in the last week and compares with 100% Buy in the past month. Data from Cree Inc.’s Trend Spotter indicated that the signals were Weakening. The stock current average is 1.88 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 1.6 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 1.38 million shares.
CREE Price Performance
On Wall Street, Cree Inc. [NASDAQ:CREE] finished Monday’s session up 1.03% at $106.99. The stock went up to $116.49 at the same session while its lowest single day price was $105.72. In the last five days, it saw a rise of about 3.77%, Cree Inc. shares gained by almost 1.03% since the beginning of the year. However, the share price has dropped to as low as -2.00% below its one year high. On 01/04/21, the company shares recorded $116.49, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $105.72. The company’s shares have inclined by 134.68% in the past year. The 50-day SMA achieved is $84.09 while the 200-day SMA is $63.59. Volume gained to 2.72 million from 1.54 million in the previous session.
CREE Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 102.98 level, and in case of violation of this particular level, it will cause more drop to 98.96 level. On the upper level, 120.50 is still the key resistance. The stock may increase to the subsequent resistance at 113.75. The Relative Strength Index (RSI) pinned on the 14-day chart is 68.15, implying a neutral technical stance while the MACD stands at 6.22, meaning price will increase in the next trading period. Percent R indicator moved to 36.19%, implying low price movement. Stochastic %K at 76.42% suggest selling the stock.
What is the short interest in Cree Inc.?
Short interest in the Cree Inc. stock has plunged, decreasing by -1.03 million shares to total 13.5 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 12.47 million, data from Yahoo Finance shows. The increase of 7.63% suggests the stock saw some increased bearish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 13.86% of the overall float for the stock.
Cree Inc.’s Biggest Shareholders: Who Owns Cree Inc. [CREE]?
Filings by Capital Research & Management Co showed that the firm now holds a total of 13,435,964 shares or roughly 12.18% of the outstanding CREE shares. This means their shares have increased by 330,746 from the 13,435,964 the investor reportedly held in its prior 13-F filing. With the conclusion of the purchase, The Vanguard Group, Inc. updated stake is worth $881,698,047. Details in the latest 13F filings reveal that BlackRock Fund Advisors disposed off their -2.23% stake valued at $786,420,027 while ClearBridge Investments LLC cut theirs at $756,510,247. During the last quarter, BlackRock Fund Advisors liquidated -198,221 of its shares in Cree Inc. while ClearBridge Investments LLC sold -340,721 shares. The PRIMECAP Management Co.’s holdings currently number 6,047,489 shares at $647020848.11. According to the firm’s last 13F report, Capital Research & Management Co shares in the company at filing stood at 5,646,653 shares, roughly $510,400,965.
CREE Earnings Forecast For The Current Quarter
Cree Inc. [CREE] is expected to report weak earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $121.6M and an earnings per share of -$0.25 for Dec 2020. Looking further ahead, the company is expected to report revenue of $128.54M at an EPS of -$0.2 for Mar 2021. The estimates represent downside of 10.30% and 61.50% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
CREE Earnings Estimates For The Current Year
For the financial year, Cree Inc. [NASDAQ:CREE] is expected to bring in revenue of $633.92M. The returns are nearly $-269.98 million lower than the company’s actual revenue recorded in the fiscal year 2020. In terms of EPS for the 2021, estimate put it at -0.78, lower than that of FY20 by -$0.33. Estimates put this year’s earnings growth at -73.30%, 61.50% for the next, and at an annual -20.64% over the next 5-year period. As for sales, forecasts are for a decrease of -29.90% in the current fiscal year and a further 10.30% over the following year.