Credo Technology Group (NASDAQ:CRDO) Shares Down 6.7% - Here's What Happened

Key Points

• Credo Technology Group shares fell 6.7% on Friday, trading as low as $171.02 after closing at $184.54 the prior day. Trading volume was also lighter than usual, down 22% from the average session.
• Despite the stock pullback, Wall Street sentiment remains mostly positive: analysts have a consensus rating of “Moderate Buy” and an average price target of $207.71. Goldman Sachs recently raised its target to $170 and kept a buy rating, while Jefferies initiated coverage with a buy rating and a $175 target.
• The company’s latest earnings showed strong fundamental growth, with EPS of $1.07 beating estimates and revenue of $407.01 million rising 201.5% year over year. However, insiders have continued to sell shares, including recent transactions by the CTO and CFO.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price traded down 6.7% during mid-day trading on Friday . The stock traded as low as $171.02 and last traded at $172.17. 5,486,721 shares traded hands during mid-day trading, a decline of 22% from the average session volume of 7,032,438 shares. The stock had previously closed at $184.54.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. The Goldman Sachs Group raised their target price on shares of Credo Technology Group from $150.00 to $170.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. Zacks Research cut shares of Credo Technology Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Stifel Nicolaus set a $200.00 target price on shares of Credo Technology Group in a report on Tuesday, March 3rd. Weiss Ratings cut shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, April 24th. Finally, Jefferies Financial Group assumed coverage on shares of Credo Technology Group in a report on Monday, April 13th. They issued a "buy" rating and a $175.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $207.71.

Credo Technology Group Price Performance

The business has a 50 day moving average of $138.39 and a 200 day moving average of $142.31. The company has a market cap of $31.76 billion, a PE ratio of 95.65 and a beta of 3.17.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings results on Monday, March 2nd. The company reported $1.07 EPS for the quarter, topping analysts' consensus estimates of $0.78 by $0.29. Credo Technology Group had a return on equity of 29.63% and a net margin of 31.81%.The company had revenue of $407.01 million during the quarter, compared to analyst estimates of $385.94 million. During the same quarter last year, the firm posted $0.25 earnings per share. The firm's revenue was up 201.5% on a year-over-year basis. Sell-side analysts forecast that Credo Technology Group Holding Ltd. will post 2.36 EPS for the current fiscal year.

Insiders Place Their Bets

In other Credo Technology Group news, CTO Chi Fung Cheng sold 27,500 shares of the firm's stock in a transaction on 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 transaction, the chief technology officer owned 6,024,870 shares of the company's stock, valued at approximately $1,078,391,481.30. This trade represents a 0.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 7,580 shares of the firm's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $152.63, for a total value of $1,156,935.40. Following the transaction, the chief financial officer directly owned 433,678 shares of the company's stock, valued at $66,192,273.14. This represents a 1.72% 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. Over the last three months, insiders sold 386,608 shares of company stock worth $50,371,351. Insiders own 11.84% of the company's stock.

Hedge Funds Weigh In On Credo Technology Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in CRDO. NewEdge Advisors LLC lifted its position in Credo Technology Group by 128.4% during the first quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock valued at $284,000 after buying an additional 3,972 shares during the period. Goldman Sachs Group Inc. lifted its position in Credo Technology Group by 63.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock valued at $61,235,000 after buying an additional 589,151 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Credo Technology Group by 2.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company's stock valued at $12,480,000 after buying an additional 7,107 shares during the period. CW Advisors LLC purchased a new position in Credo Technology Group during the second quarter valued at $288,000. Finally, EverSource Wealth Advisors LLC lifted its position in Credo Technology Group by 198.2% during the second quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock valued at $46,000 after buying an additional 333 shares during the period. Hedge funds and other institutional investors own 80.46% of the company's stock.

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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