Credo Technology Group (NASDAQ:CRDO) Shares Down 4.5% - Should You Sell?

Key Points

• Credo shares fell 4.5% to $234.82 amid trading volume below its daily average, but the stock remains well above its 200-day moving average of $180.78.
• Analysts maintain a broadly positive view, with a “Moderate Buy” consensus and an average price target of $268.39; several firms recently raised targets, including Bank of America to $340.
• The company reported strong quarterly results, with EPS of $1.16 and revenue of $437 million, while revenue surged 157% year over year. However, insiders sold roughly 435,000 shares worth $101 million during the last quarter under pre-arranged trading plans.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares fell 4.5% on Wednesday . The company traded as low as $229.18 and last traded at $234.82. Approximately 4,869,889 shares traded hands during trading, a decline of 34% from the average daily volume of 7,387,093 shares. The stock had previously closed at $245.97.

Analyst Ratings Changes

Several equities research analysts have commented on CRDO shares. Mizuho increased their price objective on shares of Credo Technology Group from $260.00 to $290.00 and gave the company an "outperform" rating in a research note on Tuesday, June 2nd. JPMorgan Chase & Co. upped their price objective on Credo Technology Group from $230.00 to $250.00 and gave the company an "overweight" rating in a research note on Tuesday, June 2nd. Wall Street Zen lowered shares of Credo Technology Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Bank of America boosted their price objective on Credo Technology Group from $252.00 to $340.00 and gave the company a "buy" rating in a research note on Tuesday, June 23rd. Finally, Rosenblatt Securities boosted their target price on shares of Credo Technology Group from $175.00 to $215.00 and gave the company a "neutral" rating in a report on Tuesday, June 2nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Credo Technology Group currently has an average rating of "Moderate Buy" and an average price target of $268.39.

Credo Technology Group Price Performance

The firm has a market capitalization of $43.79 billion, a PE ratio of 94.69, a P/E/G ratio of 1.19 and a beta of 3.23. The business's 50 day moving average is $242.63 and its two-hundred day moving average is $180.78.

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

Insider Activity

In other news, COO Yat Tung Lam sold 55,441 shares of the business's stock in a transaction dated Friday, July 31st. The stock was 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 owned 2,529,169 shares of the company's stock, valued at approximately $538,763,580.38. The trade was a 2.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,473 shares of the stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $209.53, for a total value of $5,756,417.69. Following the sale, the chief technology officer directly owned 5,772,397 shares of the company's stock, valued at approximately $1,209,490,343.41. This trade represents a 0.47% decrease in their position. 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. In the last quarter, insiders sold 435,076 shares of company stock valued at $101,043,506. Insiders own 11.84% of the company's stock.

Hedge Funds Weigh In On Credo Technology Group

Institutional investors have recently bought and sold shares of the stock. Reflection Asset Management bought a new stake in Credo Technology Group in the fourth quarter worth $25,000. Acumen Wealth Advisors LLC bought a new position in shares of Credo Technology Group during the fourth quarter valued at $25,000. Orion Capital Management LLC purchased a new position in shares of Credo Technology Group in the 2nd quarter worth about $27,000. AlphaCentric Advisors LLC purchased a new position in shares of Credo Technology Group in the 1st quarter worth about $33,000. Finally, Van ECK Associates Corp bought a new position in Credo Technology Group in the 4th quarter worth about $37,000. 80.46% of the stock is owned by institutional investors.

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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