Credo Technology Group (NASDAQ:CRDO) Shares Down 8.1% - Time to Sell?

Key Points

• Shares fell 8.1% on Tuesday to $165.92 (intraday low $164.80) from a prior close of $180.50, with 6.30M shares traded—about 14% below the average session volume.
• Analysts remain largely positive with a consensus rating of "Moderate Buy" and an average price target of $207.81, with individual targets ranging roughly $170–$260.
• Credo posted a strong quarter (EPS $1.07 vs $0.78 est.; revenue $407.0M, up 201.5% YoY), but insiders sold about 428,999 shares (~$52.95M) in the last three months.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares traded down 8.1% during trading on Tuesday . The company traded as low as $164.80 and last traded at $165.92. 6,297,645 shares traded hands during trading, a decline of 14% from the average session volume of 7,286,230 shares. The stock had previously closed at $180.50.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Stifel Nicolaus set a $200.00 price target on Credo Technology Group in a report on Tuesday, March 3rd. Barclays reaffirmed an "overweight" rating and issued a $260.00 price target on shares of Credo Technology Group in a research note on Thursday, January 15th. Rosenblatt Securities upped their price target on shares of Credo Technology Group from $125.00 to $175.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 15th. Susquehanna reduced their price target on shares of Credo Technology Group from $230.00 to $170.00 and set a "positive" rating for the company in a research note on Tuesday, March 3rd. Finally, Weiss Ratings lowered shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $207.81.

Credo Technology Group Price Performance

The business has a fifty day moving average of $123.33 and a 200-day moving average of $138.80. The stock has a market capitalization of $30.60 billion, a price-to-earnings ratio of 92.18 and a beta of 2.72.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its earnings results on Monday, March 2nd. The company reported $1.07 earnings per share (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 firm had revenue of $407.01 million for the quarter, compared to analyst estimates of $385.94 million. During the same period in the previous year, the company earned $0.25 earnings per share. Credo Technology Group's revenue was up 201.5% compared to the same quarter last year. As a group, research analysts anticipate that Credo Technology Group Holding Ltd. will post 2.36 EPS for the current year.

Insider Transactions at Credo Technology Group

In related news, CTO Chi Fung Cheng sold 27,500 shares of the firm's stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $127.37, for a total value of $3,502,675.00. Following the completion of the transaction, the chief technology officer owned 6,299,870 shares of the company's stock, valued at approximately $802,414,441.90. This trade represents a 0.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO William Joseph Brennan sold 50,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $117.68, for a total transaction of $5,884,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,782,502 shares of the company's stock, valued at $209,764,835.36. This represents a 2.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 428,999 shares of company stock worth $52,946,445 in the last three months. 11.84% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CRDO. Savant Capital LLC grew its holdings in shares of Credo Technology Group by 0.7% during the third quarter. Savant Capital LLC now owns 9,914 shares of the company's stock worth $1,444,000 after purchasing an additional 68 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in Credo Technology Group by 16.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 552 shares of the company's stock worth $80,000 after buying an additional 77 shares during the last quarter. Illinois Municipal Retirement Fund boosted its holdings in Credo Technology Group by 0.6% during the third quarter. Illinois Municipal Retirement Fund now owns 15,783 shares of the company's stock worth $2,298,000 after buying an additional 91 shares during the last quarter. QRG Capital Management Inc. boosted its holdings in Credo Technology Group by 1.7% during the first quarter. QRG Capital Management Inc. now owns 5,402 shares of the company's stock worth $507,000 after buying an additional 91 shares during the last quarter. Finally, Mark Sheptoff Financial Planning LLC boosted its holdings in Credo Technology Group by 2.0% during the fourth quarter. Mark Sheptoff Financial Planning LLC now owns 5,150 shares of the company's stock worth $741,000 after buying an additional 100 shares during the last quarter. Institutional investors and hedge funds own 80.46% of the company's stock.

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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