Credo Technology Group (NASDAQ:CRDO) Shares Down 3.8% on Insider Selling

Key Points

• Credo Technology Group's stock price fell by 3.8% amid insider selling, dipping to as low as $141.50 during trading.
• COO Yat Tung Lam sold 80,000 shares, reducing ownership by 8%, while CTO Chi Fung Cheng sold 55,000 shares, representing a 0.79% decrease in their holdings.
• Several analysts raised their price targets for the stock, with estimates ranging from $150 to $165, reflecting a generally positive outlook despite the recent decline.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price dropped 3.8% during mid-day trading on Friday following insider selling activity. The stock traded as low as $141.50 and last traded at $143.87. Approximately 6,132,045 shares traded hands during mid-day trading, an increase of 16% from the average daily volume of 5,299,385 shares. The stock had previously closed at $149.63.

Specifically, COO Yat Tung Lam sold 80,000 shares of Credo Technology Group stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $143.53, for a total value of $11,482,400.00. Following the transaction, the chief operating officer owned 920,000 shares in the company, valued at approximately $132,047,600. The trade was a 8.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CTO Chi Fung Cheng sold 55,000 shares of the stock in a transaction on Monday, September 29th. The shares were sold at an average price of $148.87, for a total value of $8,187,850.00. Following the sale, the chief technology officer owned 6,888,961 shares of the company's stock, valued at $1,025,559,624.07. This trade represents a 0.79% decrease in their position. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Susquehanna boosted their target price on Credo Technology Group from $115.00 to $165.00 and gave the stock a "positive" rating in a research report on Thursday, September 4th. Needham & Company LLC boosted their price objective on Credo Technology Group from $85.00 to $150.00 and gave the stock a "buy" rating in a report on Thursday, September 4th. Mizuho upped their price objective on shares of Credo Technology Group from $135.00 to $155.00 and gave the company an "outperform" rating in a research note on Thursday, September 4th. William Blair started coverage on shares of Credo Technology Group in a report on Thursday, September 18th. They issued an "outperform" rating for the company. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Credo Technology Group in a report on Saturday, September 27th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Credo Technology Group currently has a consensus rating of "Buy" and an average price target of $128.55.

Credo Technology Group Stock Down 3.8%

The stock has a market capitalization of $24.89 billion, a PE ratio of 214.73 and a beta of 2.60. The stock's 50-day moving average is $132.35 and its 200 day moving average is $87.39.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. GAMMA Investing LLC lifted its stake in shares of Credo Technology Group by 6.7% in the 3rd quarter. GAMMA Investing LLC now owns 1,891 shares of the company's stock valued at $275,000 after purchasing an additional 118 shares during the last quarter. China Universal Asset Management Co. Ltd. bought a new position in Credo Technology Group during the second quarter valued at about $1,296,000. Orion Porfolio Solutions LLC acquired a new stake in shares of Credo Technology Group in the second quarter worth about $663,000. Thrivent Financial for Lutherans boosted its stake in shares of Credo Technology Group by 5.4% during the 2nd quarter. Thrivent Financial for Lutherans now owns 35,225 shares of the company's stock worth $3,261,000 after acquiring an additional 1,812 shares in the last quarter. Finally, Thompson Davis & CO. Inc. acquired a new position in shares of Credo Technology Group during the 2nd quarter valued at about $380,000. Institutional investors 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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