Credo Technology Group (NASDAQ:CRDO) Shares Down 3% After Insider Selling

Key Points

• Credo Technology Group's share price dropped by 3% following an insider selling shares, with trading volumes increasing significantly.
• CTO Chi Fung Cheng sold 55,000 shares for over $9 million, reducing his ownership by 0.79%, while Director Lip Bu Tan sold 20,000 shares, decreasing his position by 4.52%.
• Wall Street analysts maintain a positive outlook, with several firms boosting price targets, and the stock currently has an average rating of "Buy" with a consensus target of $126.27.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price fell 3% during trading on Thursday after an insider sold shares in the company. The stock traded as low as $138.00 and last traded at $144.94. 6,622,356 shares traded hands during mid-day trading, an increase of 25% from the average session volume of 5,307,437 shares. The stock had previously closed at $149.38.

Specifically, CTO Chi Fung Cheng sold 55,000 shares of Credo Technology Group stock in a transaction that occurred on Monday, September 22nd. The shares were sold at an average price of $164.98, for a total value of $9,073,900.00. Following the completion of the sale, the chief technology officer directly owned 6,943,961 shares in the company, valued at $1,145,614,685.78. The trade was a 0.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Lip Bu Tan sold 20,000 shares of Credo Technology Group stock in a transaction that occurred on Thursday, September 18th. The shares were sold at an average price of $175.12, for a total transaction of $3,502,400.00. Following the completion of the transaction, the director directly owned 422,180 shares in the company, valued at approximately $73,932,161.60. This represents a 4.52% decrease in their position. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

A number of research firms have recently commented on CRDO. Mizuho lifted their price target on shares of Credo Technology Group from $135.00 to $155.00 and gave the company an "outperform" rating in a research report on Thursday, September 4th. William Blair began coverage on shares of Credo Technology Group in a research report on Thursday, September 18th. They set an "outperform" rating on the stock. Barclays boosted their target price on shares of Credo Technology Group from $85.00 to $165.00 and gave the stock an "overweight" rating in a research report on Thursday, September 4th. TD Cowen boosted their target price on shares of Credo Technology Group from $140.00 to $160.00 and gave the stock a "buy" rating in a research report on Thursday, September 4th. Finally, Cowen reissued a "buy" rating on shares of Credo Technology Group in a report on Thursday, September 4th. Two analysts have rated the stock with a Strong Buy rating and thirteen have assigned a Buy rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $126.27.

Credo Technology Group Stock Performance

The company's 50 day moving average price is $126.48 and its 200 day moving average price is $83.24. The company has a market cap of $25.07 billion, a price-to-earnings ratio of 216.33 and a beta of 2.59.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results on Wednesday, September 3rd. The company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.02). The firm had revenue of $223.07 million during the quarter, compared to analyst estimates of $190.63 million. Credo Technology Group had a net margin of 20.85% and a return on equity of 19.02%. The firm's revenue for the quarter was up 273.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.04 EPS. Credo Technology Group has set its Q2 2026 guidance at EPS. As a group, analysts predict that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in CRDO. JPMorgan Chase & Co. lifted its position in Credo Technology Group by 36.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 6,508,934 shares of the company's stock valued at $602,662,000 after purchasing an additional 1,739,844 shares during the period. Nuveen LLC bought a new position in shares of Credo Technology Group during the 1st quarter worth approximately $52,636,000. Alliancebernstein L.P. raised its holdings in shares of Credo Technology Group by 66.0% in the second quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company's stock valued at $283,778,000 after purchasing an additional 1,218,504 shares during the last quarter. 1832 Asset Management L.P. acquired a new stake in shares of Credo Technology Group in the second quarter valued at approximately $82,479,000. Finally, Swedbank AB raised its holdings in shares of Credo Technology Group by 29.5% in the first quarter. Swedbank AB now owns 3,219,125 shares of the company's stock valued at $129,280,000 after purchasing an additional 733,811 shares during the last quarter. Institutional investors and hedge funds own 80.46% of the company's stock.

About Credo Technology Group

Credo Technology Group Holding Ltd provides various high-speed connectivity Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Taiwan, Mainland China, Hong Kong, and internationally. Its products include HiWire active electrical cables, optical digital signal processors, low-power line card PHY, serializer/deserializer (SerDes) chiplets, and SerDes IP, as well as integrated circuits, active electrical cables.

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