Credo Technology Group (NASDAQ:CRDO) Shares Down 5% - Should You Sell?

Key Points

• Shares fell about 5% to $188.29 on Thursday, with ~5.46 million shares traded — roughly 23% below the stock's average daily volume of 7.10 million.
• Credo beat quarterly expectations, reporting $1.07 EPS vs. $0.78 est. and $407.01M revenue (up 201.5% YoY) with a 31.8% net margin, but the stock carries a rich valuation (market cap ~$34.7B, P/E ~104.6).
• Analysts' consensus is a “Moderate Buy” with an average target of $207.71, while insiders have sold ~386,608 shares (~$50.4M) over the last three months under pre‑arranged 10b5‑1 plans.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) were down 5% on Thursday . The company traded as low as $185.70 and last traded at $188.29. Approximately 5,460,464 shares were traded during trading, a decline of 23% from the average daily volume of 7,101,233 shares. The stock had previously closed at $198.29.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on CRDO shares. Barclays restated an "overweight" rating and set a $260.00 target price on shares of Credo Technology Group in a research note on Thursday, January 15th. Jefferies Financial Group assumed coverage on shares of Credo Technology Group in a research note on Monday, April 13th. They issued a "buy" rating and a $175.00 price objective for the company. Needham & Company LLC restated a "buy" rating and set a $220.00 price objective on shares of Credo Technology Group in a research report on Wednesday, April 15th. Susquehanna dropped their target price on shares of Credo Technology Group from $230.00 to $170.00 and set a "positive" rating for the company in a report on Tuesday, March 3rd. Finally, Rosenblatt Securities increased their price target on Credo Technology Group from $125.00 to $175.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 15th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Credo Technology Group has an average rating of "Moderate Buy" and an average target price of $207.71.

Credo Technology Group Price Performance

The stock's 50-day moving average is $128.86 and its two-hundred day moving average is $140.36. The stock has a market cap of $34.73 billion, a P/E ratio of 104.61 and a beta of 3.17.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its quarterly earnings data on Monday, March 2nd. The company reported $1.07 earnings per share for the quarter, beating analysts' consensus estimates of $0.78 by $0.29. The firm had revenue of $407.01 million during the quarter, compared to analyst estimates of $385.94 million. Credo Technology Group had a return on equity of 29.63% and a net margin of 31.81%.The business's quarterly revenue was up 201.5% compared to the same quarter last year. During the same quarter last year, the business posted $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 Buying and Selling at Credo Technology Group

In related news, CFO Daniel W. Fleming sold 7,580 shares of the company's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $152.63, for a total transaction of $1,156,935.40. Following the sale, the chief financial officer owned 433,678 shares of the company's stock, valued at $66,192,273.14. This represents a 1.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $178.99, for a total transaction of $4,922,225.00. Following the completion of the sale, the chief technology officer owned 6,024,870 shares in the company, valued at approximately $1,078,391,481.30. This trade represents a 0.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 386,608 shares of company stock worth $50,371,351. Company insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Institutional investors have recently bought and sold shares of the stock. Atlantic Union Bankshares Corp purchased a new position in shares of Credo Technology Group during the 3rd quarter worth about $25,000. Crewe Advisors LLC lifted its stake in Credo Technology Group by 163.1% in the fourth quarter. Crewe Advisors LLC now owns 171 shares of the company's stock worth $25,000 after purchasing an additional 106 shares during the last quarter. Reflection Asset Management bought a new stake in Credo Technology Group in the fourth quarter worth about $25,000. Acumen Wealth Advisors LLC purchased a new position in shares of Credo Technology Group during the fourth quarter valued at approximately $25,000. Finally, First Horizon Corp purchased a new stake in shares of Credo Technology Group in the third quarter worth approximately $26,000. 80.46% of the stock is currently owned by institutional investors.

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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