Cree Inc. (CREE) CEO, President and Chairman Charles Swoboda (Insider Trades)Â acquired 10,000 shares on Oct. 20. The price per share was $22.22 for a total transaction of $222,200.
Cree, a manufacturer of lighting products and semiconductor products for power and radio frequency (RF) applications, has a market cap of $2.21 billion.
The number and volume of insider buys and insider sells shared an inverse relationship from 2013 to 2015. The number and volume of insider buys increased each year starting in 2013, when there were no insider buys, to the following year, when there were two insider buys totaling 6,250 shares. In 2015, the number of insider buys doubled to four in comparison to the previous year, and the total volume of insider shares purchased more than doubled to 21,166.
Since 2013, Swoboda conducted two insider buys and two insider sells of Cree totaling 20,000 and 80,000 shares. Executive Vice President and Chief Financial Officer Michael McDevitt (Insider Trades) acquired 5,000 shares for a per share price of $22.20 on Oct. 21. For more information about insider trades with Cree, click here.
For the first fiscal quarter of 2017 ended on Sept. 25, the company reported net revenue of $321.329 million. Net revenue decreased in comparison to the previous year’s fiscal first quarter in which the company reported net revenue of $381.549 million. Gross profit also decreased from $107.192 million to $86.341 million when comparing the same periods of time. On the other hand, net income increased from the fiscal first quarter of 2016 to the fiscal first quarter of 2017. The company reported net loss of $24.489 million in the first fiscal quarter of 2016 and net income of $566,000 in the first fiscal quarter of 2017.
Swoboda commented that the company delivered “solid results,” as the company’s “Lighting, LED Products and Wolfspeed all achieved revenue and gross margins that were in line with [the company’s] targets. Swoboda continued by stating the company will continue to “transition to a more focused LED lighting company.” In the fiscal first quarter of 2017, the company reached an agreement to sell the Wolfspeed business to Infineon Technologies AG (IFX). The transaction is expected to close around the end of the calendar year.
According to GuruFocus.com Cree has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.
Joel Greenblatt (Trades, Portfolio) sold out all held shares of Cree while Chuck Royce (Trades, Portfolio) increased his stake in the company during the second quarter. Greenblatt sold 45,147 shares for an average price of $24.31 per share after acquiring the holding at an average price of $28.65 per share in the previous quarter. Royce increased his stake in Cree by 169,500 shares in the second quarter after increasing his stake in the previous two quarters. The total estimated loss of the holding since the third quarter of 2015 is 11%.
For more information about guru trades with Cree, click here.
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