JP Morgan raised the price target for the Cree Inc. (NASDAQ:CREE) stock from “a Neutral” to “an Underweight”. The rating was released on April 29, 2021. The research report from BofA Securities has initiated the stock to Buy, with a price target set at $140. The stock was upgraded by Cowen, who disclosed in a research note on February 22, 2021, from Market Perform to Outperform and set the price objective to $150. In their research brief published February 17, 2021, Citigroup analysts upgraded the Cree Inc. stock from Neutral to Buy with a price target of $160.
Historical Earnings Surprises and Revenue Forecasts
Profit is the most critical financial performance measure. Every investor in a business is looking forward to the earnings report as stock price to increase when earnings exceed market expectations and progressively decrease when earnings do not meet expectations. The firm reported an earnings per share (EPS) of -$0.22 during the last quarter as opposed to a consensus estimate of -$0.23, which indicates the company beat its estimate by $0.01, which implies that the company surprised the market by 4.30%. It appears that the average earnings per share estimate for the current quarter (ending in Jun 2021) is -$0.24. This is an average of 13 analysts’ earnings, where the high earnings per share estimate is -$0.22 and the low earnings per share estimate is -$0.28. According to 11 analyst estimates, an average revenue estimate of $145.16M is projected for the current quarter with a high revenue estimate of $146M and a low estimate of $144.2M.
The latest trade, Performances and Moving Averages give us the following Picture
The share price of Cree Inc. (NASDAQ:CREE) dipped -2.36% to close Monday’s market session at $97.07, lower as compared to yesterday’s close. The stock price fluctuated between $96.72 and $100.55 throughout the trading session with the volume trading being 2046801 shares, which represented a significant variation when compared to the three months average volume of 1.75 million shares. The firm’s stock price fluctuated -18.44% within the last five trades and -15.76% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price increased 53.57% in the last 6 months and -14.96% was subtracted to its value over the previous 3 months. CREE stock is trading at a margin of -12.71%, -11.68% and 8.68% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.
As of the close of trading, CREE deals in the Technology domain. The stock is trading -25.27 percent below its 52-week high and 151.15 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is 80.68. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.
What Does Cree Inc.’s Profitability and Valuation Ratios Tell Us About the Stock?
With regard to the profitability of the company, the operating margin is currently at -40.10 percent and the profit margin is -71.10 percent, and the company has reported a gross margin of 29.30 percent. The profit margin, also known as the revenue ratio or gross profit ratio, is an efficiency figure used to estimate the business’s profitability by comparing net income and sales. The higher the number, the more profits are generated for the company and vice versa.
The stock’s market cap achieved a total value of $10.68 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 18.24 that mirrors the cost to be found for sales by the market. The firm managed a Price-to-Book ratio of 4.88, which equates the market value of a stock with its book value.
Is Insider Trading a Real Thing?
LE DUY LOAN T, the Director at Cree Inc. (CREE) has bought 1,000 shares of firm on Feb 26 at a price of $105.77 against the total amount of $0.11 million. In another inside trade, HOSEIN CLYDE, Director of Cree Inc. (NASDAQ:CREE) sold 13,816 shares of the firm on Feb 19 for a total worth of $1.73 million at a price of $125.48. An inside trade which took place on Feb 01, Director of Cree Inc. REPLOGLE JOHN B sold 1,722 shares of firm against total price of $0.18 million at the cost of $103.60 per share.