Credo Technology Group (NASDAQ:CRDO) Shares Down 9.5% - Here's Why

Key Points

• Credo Technology Group shares fell 9.5% on Tuesday, trading as low as $266.85 after closing at $302.52, with volume well below average.
• Despite the stock drop, analyst sentiment remains bullish: Stifel and Bank of America both raised price targets, Evercore initiated coverage with a strong-buy rating, and the stock has a consensus “Buy” rating.
• The company beat quarterly earnings expectations, posting $1.16 per share on revenue of $437 million, while revenue rose 157% from a year earlier. However, recent insider sales by the CEO and a director may have added to investor caution.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) fell 9.5% on Tuesday . The stock traded as low as $266.85 and last traded at $273.7650. Approximately 2,107,809 shares changed hands during mid-day trading, a decline of 72% from the average session volume of 7,503,747 shares. The stock had previously closed at $302.52.

Trending Headlines about Credo Technology Group

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Stifel raised its price target on Credo Technology Group from $250 to $350 and kept a buy rating, signaling confidence in more upside for the stock. Stifel price target raise via Benzinga
• Positive Sentiment: Bank of America lifted its target from $252 to $340 and reiterated a buy rating, adding to the bullish analyst momentum around CRDO. Bank of America price target raise via Benzinga
• Positive Sentiment: Evercore initiated coverage with a strong-buy rating and a $325 target, saying the market may be underestimating Credo’s opportunity in AI networking infrastructure and optical interconnects. Evercore initiation via The Fly
• Positive Sentiment: The stock was also added to Zacks’ Rank #1 (Strong Buy) growth list, which can attract more growth-oriented investors. Zacks growth stock list

Analyst Ratings Changes

Several equities analysts have weighed in on the company. The Goldman Sachs Group reissued a "buy" rating and set a $250.00 price target on shares of Credo Technology Group in a research report on Tuesday, June 2nd. Weiss Ratings upgraded shares of Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. TD Cowen boosted their target price on shares of Credo Technology Group from $240.00 to $260.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Stifel Nicolaus upped their price target on shares of Credo Technology Group from $250.00 to $350.00 and gave the stock a "buy" rating in a research report on Monday. Finally, Rosenblatt Securities increased their price target on shares of Credo Technology Group from $175.00 to $215.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 2nd. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, Credo Technology Group has an average rating of "Buy" and a consensus target price of $263.11.

Credo Technology Group Trading Down 10.2%

The stock's 50-day moving average is $203.74 and its 200-day moving average is $154.84. The stock has a market cap of $50.64 billion, a price-to-earnings ratio of 109.51, a P/E/G ratio of 1.43 and a beta of 3.22.

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

Insider Activity

In related news, Director Sylvia Acevedo sold 2,208 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $211.00, for a total value of $465,888.00. Following the completion of the sale, the director directly owned 16,337 shares in the company, valued at approximately $3,447,107. This represents a 11.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO William Joseph Brennan sold 54,984 shares of the firm's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $218.57, for a total value of $12,017,852.88. Following the completion of the transaction, the chief executive officer directly owned 367,327 shares in the company, valued at $80,286,662.39. This trade represents a 13.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 389,384 shares of company stock worth $70,041,518 in the last quarter. Insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Several large investors have recently bought and sold shares of the company. NewEdge Advisors LLC boosted its stake in shares of Credo Technology Group by 128.4% in the first quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock valued at $284,000 after purchasing an additional 3,972 shares during the period. Goldman Sachs Group Inc. lifted its holdings in Credo Technology Group by 63.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock worth $61,235,000 after buying an additional 589,151 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Credo Technology Group by 2.3% in the 1st 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 last quarter. CW Advisors LLC purchased a new position in Credo Technology Group in the 2nd quarter valued at about $288,000. Finally, EverSource Wealth Advisors LLC grew its stake in Credo Technology Group by 198.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock valued at $46,000 after purchasing an additional 333 shares in the last quarter. Institutional investors and hedge funds 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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