Cree (CREE) Is Strong On High Volume Today
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cree as such a stock due to the following factors:
- CREE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.6 million.
- CREE has traded 147,751 shares today.
- CREE is trading at 2.03 times the normal volume for the stock at this time of day.
- CREE is trading at a new high 3.03% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on CREE:
Cree, Inc. provides lighting-class light emitting diode (LED), lighting, and semiconductor products for power and radio-frequency (RF) applications in the United States, China, Europe, South Korea, Japan, Malaysia, Taiwan, and internationally. Currently there are 2 analysts that rate Cree a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for Cree has been 1.6 million shares per day over the past 30 days. Cree has a market cap of $2.8 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.41 and a short float of 26.2% with 12.04 days to cover. Shares are down 23.1% year-to-date as of the close of trading on Friday.
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Analysis:
rates Cree as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- CREE's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.32, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 252.55% to $46.83 million when compared to the same quarter last year. In addition, CREE INC has also vastly surpassed the industry average cash flow growth rate of -31.03%.
- Despite the weak revenue results, CREE has outperformed against the industry average of 11.0%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 312.2% when compared to the same quarter one year ago, falling from $11.13 million to -$23.62 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, CREE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Cree Ratings Report.
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