Just two weeks away from its next earnings report, Cree (Nasdaq: CREE) took a bad hit Monday on Wall Street in a day of heavy trading.

Shares in LED maker and semiconductor manufacturer Cree dropped 7.45 percent percent after analyst firm Canaccord Genuity cut the stock to “Hold” from “Buy” and slashed its share target price by $6.

Investors traded some 4 million shares in volume that more than doubled the daily average of 1.56 million shares.

The target price was reduced to $32 from $38.

In a research note reported by StreetInsider, Canaccord said it doubled there would be growth in gross margin with Cree profits likely to be more focused going forward in LED lighting systems rather than from its so-called SC3 manufacturing process for LEDs away from “legacy components.”

“We believe that our thesis of GM expansion from the transition of legacy components to SC3 has largely played out and is reflected in the stock,” the firm said. “We believe Cree’s next phase of growth will be driven by its lighting systems business, not components, which may limit further GM expansion.”

At 1 p.m. Monday, Cree shares traded down 6.11 percent at $32.26, a drop of $2.10.

By the close, Cree finished worse at $31.80, down $2.56.

Still, Cree shares are a long way from their 52-week low of $22.25 back in July.

Its 52-week high is $35.12.

Cree is scheduled to report earnings on Jan. 22.