Credo Technology Group (NASDAQ:CRDO) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Credo Technology Group to “Hold” from “Buy,” although the broader analyst consensus remains “Buy,” with a consensus price target of $266.17.
• Credo reported strong quarterly results, posting $1.16 in EPS versus the $1.02 estimate and $437 million in revenue, up 157% year over year and above consensus expectations.
• The stock opened at $206.99, well below its 52-week high of $308.67, while insiders sold approximately $72.8 million of shares over the past 90 days; institutional investors own 80.46% of the company.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other brokerages have also recently issued reports on CRDO. Roth Capital upped their target price on Credo Technology Group from $200.00 to $300.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Evercore began coverage on shares of Credo Technology Group in a research note on Monday, June 22nd. They issued an "outperform" rating and a $325.00 price objective for the company. The Goldman Sachs Group reaffirmed a "buy" rating and set a $250.00 price objective on shares of Credo Technology Group in a report on Tuesday, June 2nd. TD Cowen raised their target price on shares of Credo Technology Group from $240.00 to $260.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. Finally, Bank of America lifted their target price on shares of Credo Technology Group from $252.00 to $340.00 and gave the stock a "buy" rating in a report on Tuesday, June 23rd. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Credo Technology Group has an average rating of "Buy" and a consensus price target of $266.17.

Credo Technology Group Price Performance

NASDAQ CRDO opened at $206.99 on Friday. Credo Technology Group has a fifty-two week low of $86.49 and a fifty-two week high of $308.67. The stock's 50-day moving average is $236.60 and its two-hundred day moving average is $171.84. The firm has a market cap of $38.60 billion, a P/E ratio of 83.46, a price-to-earnings-growth ratio of 0.92 and a beta of 3.20.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings results on Monday, June 1st. The company reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.14. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The company had revenue of $437.00 million during the quarter, compared to the consensus estimate of $431.80 million. During the same quarter in the prior year, the company posted $0.20 EPS. The firm's revenue was up 157.0% on a year-over-year basis. On average, equities analysts expect that Credo Technology Group will post 4.84 EPS for the current year.

Insider Transactions at Credo Technology Group

In related news, CEO William Joseph Brennan sold 54,984 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $218.57, for a total value of $12,017,852.88. Following the completion of the sale, the chief executive officer owned 367,327 shares in the company, valued at approximately $80,286,662.39. This trade represents a 13.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $243.06, for a total value of $6,684,150.00. Following the sale, the chief technology officer directly owned 5,882,370 shares in the company, valued at approximately $1,429,768,852.20. This trade represents a 0.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 302,162 shares of company stock worth $72,810,546. 11.84% of the stock is currently owned by company insiders.

Institutional Trading of Credo Technology Group

A number of hedge funds have recently modified their holdings of the company. Accel Wealth Management acquired a new stake in shares of Credo Technology Group during the 2nd quarter worth approximately $383,000. Nolet Wealth Management LLC acquired a new position in shares of Credo Technology Group in the second quarter valued at $214,000. Generali Investments Management Co LLC acquired a new position in shares of Credo Technology Group in the second quarter valued at $695,000. Redhawk Wealth Advisors Inc. bought a new position in Credo Technology Group in the second quarter worth $243,000. Finally, Wealthcare Advisory Partners LLC lifted its position in Credo Technology Group by 3.0% in the second quarter. Wealthcare Advisory Partners LLC now owns 3,458 shares of the company's stock worth $940,000 after purchasing an additional 101 shares during the period. Institutional investors own 80.46% of the company's stock.

About Credo Technology Group

Credo Technology Group, Inc NASDAQ: CRDO is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo's product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.

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