Credo Technology Group (NASDAQ:CRDO) Shares Down 2.3% - Here's What Happened

Key Points

• Credo Technology Group shares fell 2.3% to about $259.90 in mid-day trading, with volume down 55% from its average. The stock has a market capitalization of approximately $48.47 billion and a high beta of 3.23.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $266.17; several firms recently raised their targets, including Bank of America to $340.
• Credo reported strong quarterly results, with EPS of $1.16 beating estimates and revenue rising 157% year over year to $437 million. However, insiders sold roughly 435,076 shares worth $101 million over the past 90 days.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price dropped 2.3% during mid-day trading on Friday . The company traded as low as $253.75 and last traded at $259.90. Approximately 3,362,157 shares traded hands during mid-day trading, a decline of 55% from the average daily volume of 7,407,430 shares. The stock had previously closed at $265.99.

Analyst Upgrades and Downgrades

CRDO has been the topic of a number of recent research reports. Rosenblatt Securities raised their price target on shares of Credo Technology Group from $175.00 to $215.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 2nd. Jefferies Financial Group increased their target price on shares of Credo Technology Group from $225.00 to $270.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Bank of America raised 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. Susquehanna lifted their price target on shares of Credo Technology Group from $235.00 to $250.00 and gave the company a "positive" rating in a research report on Tuesday, July 21st. Finally, TD Cowen boosted their price target on Credo Technology Group from $240.00 to $260.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $266.17.

Credo Technology Group Trading Down 2.3%

The firm's 50-day moving average price is $240.13 and its 200 day moving average price is $177.96. The company has a market capitalization of $48.47 billion, a price-to-earnings ratio of 104.80, a PEG ratio of 1.23 and a beta of 3.23.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted 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 net margin of 35.37% and a return on equity of 32.30%. The business had revenue of $437.00 million for the quarter, compared to analyst estimates of $431.80 million. During the same quarter last year, the business posted $0.20 EPS. The firm's revenue for the quarter was up 157.0% on a year-over-year basis. As a group, equities research analysts anticipate that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO William Joseph Brennan sold 54,984 shares of the company's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $218.57, for a total transaction of $12,017,852.88. Following the completion of the sale, the chief executive officer directly owned 367,327 shares in the company, valued at $80,286,662.39. This represents a 13.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, COO Yat Tung Lam sold 55,441 shares of the firm's stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $213.02, for a total value of $11,810,041.82. Following the completion of the sale, the chief operating officer directly owned 2,529,169 shares in the company, valued at $538,763,580.38. This trade represents a 2.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 435,076 shares of company stock worth $101,043,506 over the last 90 days. Corporate insiders own 11.84% of the company's stock.

Hedge Funds Weigh In On Credo Technology Group

Institutional investors have recently added to or reduced their stakes in the stock. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of Credo Technology Group by 9.4% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 271,067 shares of the company's stock valued at $39,004,000 after purchasing an additional 23,332 shares during the period. FengHe Fund Management Pte. Ltd. grew its stake in Credo Technology Group by 5.7% during the fourth quarter. FengHe Fund Management Pte. Ltd. now owns 162,269 shares of the company's stock worth $23,349,000 after purchasing an additional 8,769 shares during the period. M&T Bank Corp increased its holdings in Credo Technology Group by 428.8% in the fourth quarter. M&T Bank Corp now owns 13,427 shares of the company's stock worth $1,932,000 after purchasing an additional 10,888 shares in the last quarter. California State Teachers Retirement System increased its holdings in Credo Technology Group by 2.2% in the first quarter. California State Teachers Retirement System now owns 240,886 shares of the company's stock worth $22,612,000 after purchasing an additional 5,113 shares in the last quarter. Finally, Teacher Retirement System of Texas lifted its stake in Credo Technology Group by 486.2% in the fourth quarter. Teacher Retirement System of Texas now owns 239,721 shares of the company's stock valued at $34,493,000 after buying an additional 198,826 shares during the period. 80.46% of the stock is currently owned by institutional investors and hedge funds.

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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