Cree, Inc. (CREE) saw a big move in the last trading session, as the company’s shares fell by nearly 10% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as CREE is now trading below the volatile price range of $29.09 to $31.04 in the past one-month time frame.
On Jun 24, Cree, Inc. announced a major business restructuring plan in reaction to disappointing LED market trends, which have eroded average LED selling prices and resulted in the continued under-utilization of the company’s LED factory.
The company, which develops, manufactures, and sells lighting-class LED, lighting, and semiconductor products for power and RF applications, has seen a flat track record when it comes to current year estimate revisions, as there has been no revision on either side over the past few weeks. The consensus for earnings estimate hasn’t been in a trend either. This recent price action is discouraging, so make sure to keep a close watch on this firm in the near future, and especially on earnings estimates following the recent slump.
CREE currently holds a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
Investors interested in the Semiconductor space may consider a better-ranked stock like Ambarella, Inc. (AMBA), carrying a Zacks Rank #1 (Strong Buy).
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