Credo Technology Group (NASDAQ:CRDO) Shares Down 2.1% - Here's What Happened

Key Points

• Shares fell 2.1% to $185.54 on Thursday (intraday low $179.11) on 5.79M shares traded, about 21% below its average session volume; the company has a market cap of $34.22 billion and a PE of 103.08.
• Wall Street sentiment is broadly positive with an average rating of "Moderate Buy" and an average price target of $207.81 (notable targets: Needham $220, Jefferies $175); analyst mix includes 1 Strong Buy, 14 Buy and 3 Hold ratings.
• Recent quarter beat expectations: Credo reported EPS of $1.07 vs. $0.78 est and revenue of $407.0M vs. $385.9M, marking revenue growth of 201.5% year‑over‑year and a net margin of 31.81%.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded down 2.1% on Thursday . The stock traded as low as $179.11 and last traded at $185.54. 5,788,111 shares traded hands during mid-day trading, a decline of 21% from the average session volume of 7,313,232 shares. The stock had previously closed at $189.49.

Wall Street Analysts Forecast Growth

CRDO has been the topic of a number of research reports. Needham & Company LLC reiterated a "buy" rating and issued a $220.00 price target on shares of Credo Technology Group in a report on Wednesday, April 15th. Zacks Research downgraded shares of Credo Technology Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Rosenblatt Securities lifted their price target on shares of Credo Technology Group from $125.00 to $175.00 and gave the company a "neutral" rating in a report on Wednesday, April 15th. Stifel Nicolaus set a $200.00 price target on shares of Credo Technology Group in a report on Tuesday, March 3rd. Finally, Jefferies Financial Group began coverage on Credo Technology Group in a research note on Monday, April 13th. They set a "buy" rating and a $175.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Credo Technology Group has an average rating of "Moderate Buy" and an average price target of $207.81.

Credo Technology Group Stock Down 2.1%

The company has a market cap of $34.22 billion, a PE ratio of 103.08 and a beta of 2.72. The stock's 50 day moving average is $119.41 and its 200-day moving average is $138.00.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings results on Monday, March 2nd. The company reported $1.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.78 by $0.29. The company had revenue of $407.01 million for the quarter, compared to the consensus estimate of $385.94 million. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. Credo Technology Group's revenue was up 201.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.25 earnings per share. On average, analysts anticipate that Credo Technology Group Holding Ltd. will post 2.36 EPS for the current fiscal year.

Insider Transactions at Credo Technology Group

In related news, CEO William Joseph Brennan sold 50,000 shares of the stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $117.68, for a total value of $5,884,000.00. Following the completion of the transaction, the chief executive officer owned 1,782,502 shares of the company's stock, valued at approximately $209,764,835.36. This trade represents a 2.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $127.37, for a total value of $3,502,675.00. Following the transaction, the chief technology officer directly owned 6,299,870 shares in the company, valued at approximately $802,414,441.90. This represents a 0.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 401,499 shares of company stock valued at $47,775,895. 11.84% of the stock is owned by insiders.

Institutional Investors Weigh In On Credo Technology Group

Institutional investors have recently made changes to their positions in the company. NewEdge Advisors LLC grew its stake in shares of Credo Technology Group by 128.4% during the first quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock valued at $284,000 after buying an additional 3,972 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Credo Technology Group by 63.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock valued at $61,235,000 after buying an additional 589,151 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Credo Technology Group by 2.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company's stock valued at $12,480,000 after buying an additional 7,107 shares during the last quarter. CW Advisors LLC bought a new position in shares of Credo Technology Group during the second quarter valued at approximately $288,000. Finally, EverSource Wealth Advisors LLC grew its stake in shares of Credo Technology Group by 198.2% during the second quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock valued at $46,000 after buying an additional 333 shares during the last quarter. Institutional investors own 80.46% of the company's stock.

Credo Technology Group Company Profile

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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