Credo Technology Group (NASDAQ:CRDO) Shares Down 6.9% - Here's What Happened

Key Points

• Credo Technology Group's shares fell 6.9% during mid-day trading, with the stock trading as low as $134.80 before closing at $137.20, significantly below its previous close of $147.42.
• Despite the drop, analysts remain optimistic, with two analysts rating the stock as "Strong Buy" and a consensus price target of $128.55, although the stock currently has a P/E ratio of 204.78.
• Insider transactions show a trend of selling, with Director Lip Bu Tan selling 20,000 shares for approximately $3.5 million, indicating potential concerns among insiders despite overall institutional ownership at 80.46%.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price dropped 6.9% during mid-day trading on Tuesday . The stock traded as low as $134.80 and last traded at $137.20. Approximately 8,371,136 shares traded hands during trading, an increase of 57% from the average daily volume of 5,321,555 shares. The stock had previously closed at $147.42.

Wall Street Analysts Forecast Growth

CRDO has been the topic of several analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Credo Technology Group in a report on Saturday, September 27th. William Blair started coverage on shares of Credo Technology Group in a research note on Thursday, September 18th. They set an "outperform" rating on the stock. Needham & Company LLC lifted their target price on shares of Credo Technology Group from $85.00 to $150.00 and gave the company a "buy" rating in a research note on Thursday, September 4th. Zacks Research raised Credo Technology Group from a "hold" rating to a "strong-buy" rating in a report on Monday, September 8th. Finally, Roth Capital reiterated a "buy" rating and issued a $170.00 price objective on shares of Credo Technology Group in a research report on Tuesday, September 30th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, Credo Technology Group has an average rating of "Buy" and a consensus price target of $128.55.

Credo Technology Group Trading Down 6.9%

The stock has a market capitalization of $23.74 billion, a P/E ratio of 204.78 and a beta of 2.60. The company has a fifty day simple moving average of $133.99 and a two-hundred day simple moving average of $89.37.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its quarterly 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). Credo Technology Group had a return on equity of 19.02% and a net margin of 20.85%.The business had revenue of $223.07 million for the quarter, compared to analyst estimates of $190.63 million. During the same quarter in the prior year, the firm earned $0.04 EPS. The firm's quarterly revenue was up 273.6% compared to the same quarter last year. Credo Technology Group has set its Q2 2026 guidance at EPS. As a group, analysts forecast that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Credo Technology Group news, Director Lip Bu Tan sold 20,000 shares of the stock in a transaction dated Thursday, September 18th. The stock was sold at an average price of $175.12, for a total value of $3,502,400.00. Following the transaction, the director owned 422,180 shares of the company's stock, valued at approximately $73,932,161.60. This represents a 4.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider James Laufman sold 10,000 shares of Credo Technology Group stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $140.00, for a total transaction of $1,400,000.00. Following the transaction, the insider directly owned 232,284 shares in the company, valued at $32,519,760. The trade was a 4.13% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 823,915 shares of company stock valued at $106,393,195 in the last ninety days. 11.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Credo Technology Group

Large investors have recently modified their holdings of the business. Operose Advisors LLC grew its position in shares of Credo Technology Group by 69.2% in the 1st quarter. Operose Advisors LLC now owns 616 shares of the company's stock valued at $25,000 after purchasing an additional 252 shares during the period. Northwestern Mutual Wealth Management Co. bought a new position in Credo Technology Group in the first quarter valued at approximately $25,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Credo Technology Group in the first quarter valued at approximately $27,000. Pinpoint Asset Management Singapore Pte. Ltd. bought a new stake in shares of Credo Technology Group during the second quarter worth $27,000. Finally, Harbour Investments Inc. acquired a new stake in shares of Credo Technology Group during the first quarter worth $29,000. 80.46% of the stock is currently owned by institutional investors.

Credo Technology Group Company Profile

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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