Time to Sell Cree, Inc. After Today’s Option Traders Bearish Bets?

 Time to Sell Cree, Inc. After Today's Option Traders Bearish Bets?

In today’s session Cree, Inc. (CREE) recorded an unusually high (101) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious CREE decrease. With 101 contracts traded and 484 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: CREE161118P00024000 closed last at: $0.84 or 6.3% up. About 277,935 shares traded hands. Cree, Inc. (NASDAQ:CREE) has declined 22.29% since March 2, 2016 and is downtrending. It has underperformed by 30.55% the S&P500.

Analysts await Cree, Inc. (NASDAQ:CREE) to report earnings on October, 18. They expect $0.07 EPS, down 41.67% or $0.05 from last year’s $0.12 per share. CREE’s profit will be $6.96M for 90.54 P/E if the $0.07 EPS becomes a reality. After $0.06 actual EPS reported by Cree, Inc. for the previous quarter, Wall Street now forecasts 16.67% EPS growth.

Cree, Inc. (NASDAQ:CREE) Ratings Coverage

Out of 12 analysts covering Cree Inc. (NASDAQ:CREE), 3 rate it a “Buy”, 2 “Sell”, while 7 “Hold”. This means 25% are positive. Cree Inc. has been the topic of 18 analyst reports since August 12, 2015 according to StockzIntelligence Inc. Piper Jaffray upgraded the shares of CREE in a report on Monday, February 22 to “Overweight” rating. On Thursday, February 4 the stock rating was upgraded by Northland Capital to “Outperform”. The firm earned “Sell” rating on Friday, November 6 by Goldman Sachs. Canaccord Genuity maintained the shares of CREE in a report on Wednesday, January 20 with “Hold” rating. Pacific Crest initiated the shares of CREE in a report on Friday, May 13 with “Sector Perform” rating. The firm has “Hold” rating given on Friday, September 23 by Canaccord Genuity. The stock of Cree, Inc. (NASDAQ:CREE) has “Buy” rating given on Thursday, August 25 by TH Capital. As per Friday, July 15, the company rating was maintained by Deutsche Bank. The firm has “Hold” rating by Williams Capital Group given on Friday, September 30. Northland Capital downgraded the stock to “Market Perform” rating in Wednesday, August 17 report.

According to Zacks Investment Research, “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.”

Insitutional Activity: The institutional sentiment decreased to 0.98 in Q2 2016. Its down 0.23, from 1.21 in 2016Q1. The ratio dived, as 40 funds sold all Cree, Inc. shares owned while 81 reduced positions. 29 funds bought stakes while 89 increased positions. They now own 83.30 million shares or 3.78% less from 86.57 million shares in 2016Q1.
Greenwich Wealth Ltd Liability Company accumulated 52,000 shares or 2.77% of the stock. Parametric Port Associates Limited Company accumulated 74,610 shares or 0% of the stock. Oregon Employees Retirement Fund holds 34,452 shares or 0.02% of its portfolio. Mark Sheptoff Planning Limited Liability Corp holds 0% or 200 shares in its portfolio. Teacher Retirement Of Texas has 14,223 shares for 0% of their US portfolio. Seven Eight Cap Ltd Com accumulated 6,683 shares or 0.06% of the stock. Moreover, Cambridge Research Advisors has 0.01% invested in Cree, Inc. (NASDAQ:CREE) for 11,942 shares. The California-based Checchi Capital Advisers Limited Liability Company has invested 0% in Cree, Inc. (NASDAQ:CREE). The Pennsylvania-based Glenmede Trust Comm Na has invested 0% in Cree, Inc. (NASDAQ:CREE). California Pub Employees Retirement System last reported 0.03% of its portfolio in the stock. Tower Rech Limited Liability Co (Trc) accumulated 0.01% or 2,410 shares. Cornerstone Cap Ltd Limited Liability Company last reported 0.13% of its portfolio in the stock. Creative Planning accumulated 0% or 10,529 shares. Hall Laurie J Trustee, a Massachusetts-based fund reported 6,473 shares. Huntington Retail Bank, a Ohio-based fund reported 1,411 shares.

Insider Transactions: Since August 17, 2016, the stock had 1 buying transaction, and 0 insider sales for $116,650 net activity. 5,000 shares were bought by REPLOGLE JOHN B, worth $116,650.

Cree, Inc. is a manufacturer of lighting-class light emitting diode products, lighting products and semiconductor products for power and radio-frequency (RF) applications. The company has a market cap of $2.52 billion. 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. It currently has negative earnings. The Firm has three divisions: Lighting Products, LED Products, and Power and RF Products.

CREE Company Profile

Cree, Inc., incorporated on July 14, 1987, is a maker 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. The Firm has three divisions: Lighting Products, LED Products, and Power and RF Products. The Company’s Lighting Products segment offers LED lighting systems and bulbs. The Company’s LED Products segment offers LED components, LED chips and silicon carbide (SiC) materials. The Company’s Power and RF Products segment offers power devices and RF devices.

Another recent and important Cree, Inc. (NASDAQ:CREE) news was published by Fool.com which published an article titled: “Why Cree, Inc. Fell 16% in August” on September 08, 2016.

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