Credo Technology Group (NASDAQ:CRDO) Shares Down 9.9% - Time to Sell?

Key Points

• Credo Technology Group shares fell 9.9% on Friday, closing well below the prior day’s finish amid lighter-than-normal trading volume.
• Despite the drop, Wall Street remains upbeat: several analysts recently raised price targets, and the stock still carries a consensus Buy rating with a $266.17 target.
• The company’s latest earnings beat expectations, with $1.16 EPS and $437 million in revenue, both ahead of estimates and sharply above year-ago levels.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price traded down 9.9% on Friday . The company traded as low as $209.55 and last traded at $213.15. Approximately 5,893,708 shares changed hands during trading, a decline of 23% from the average daily volume of 7,655,609 shares. The stock had previously closed at $236.50.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on CRDO. TD Cowen boosted their price target on shares of Credo Technology Group from $240.00 to $260.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Barclays lifted their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a research note on Monday. JPMorgan Chase & Co. boosted their target price on shares of Credo Technology Group from $230.00 to $250.00 and gave the company an "overweight" rating in a report on Tuesday, June 2nd. Roth Capital increased their price target on Credo Technology Group from $200.00 to $300.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Finally, Bank of America lifted their price objective on Credo Technology Group from $252.00 to $340.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, Credo Technology Group has a consensus rating of "Buy" and a consensus price target of $266.17.

Credo Technology Group Price Performance

The firm has a fifty day simple moving average of $234.46 and a 200-day simple moving average of $169.58. The firm has a market cap of $39.75 billion, a P/E ratio of 85.95, a price-to-earnings-growth ratio of 1.04 and a beta of 3.20.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Monday, June 1st. The company reported $1.16 EPS for the quarter, beating analysts' consensus estimates of $1.02 by $0.14. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The firm had revenue of $437.00 million during the quarter, compared to analysts' expectations of $431.80 million. During the same quarter last year, the firm posted $0.20 earnings per share. The company's revenue for the quarter 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 year.

Insider Buying and Selling at Credo Technology Group

In other Credo Technology Group news, CTO Chi Fung Cheng sold 3,790 shares of the firm's stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $258.71, for a total value of $980,510.90. Following the transaction, the chief technology officer directly owned 140,358 shares of the company's stock, valued at approximately $36,312,018.18. This trade represents a 2.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Fariba Danesh sold 1,100 shares of Credo Technology Group stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $236.34, for a total transaction of $259,974.00. Following the transaction, the director owned 7,017 shares of the company's stock, valued at $1,658,397.78. This represents a 13.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 302,162 shares of company stock worth $70,897,646. 11.84% of the stock is owned by company insiders.

Hedge Funds Weigh In On Credo Technology Group

Large investors have recently added to or reduced their stakes in the business. Corient Private Wealth LLC raised its stake in shares of Credo Technology Group by 239,024.5% in the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company's stock worth $517,835,000 after purchasing an additional 3,597,318 shares during the last quarter. Amundi boosted its position in shares of Credo Technology Group by 28,478.2% during the fourth quarter. Amundi now owns 1,559,796 shares of the company's stock valued at $224,439,000 after buying an additional 1,554,338 shares during the last quarter. Janus Henderson Group PLC boosted its position in shares of Credo Technology Group by 841.9% during the fourth quarter. Janus Henderson Group PLC now owns 1,591,348 shares of the company's stock valued at $228,979,000 after buying an additional 1,422,391 shares during the last quarter. Bank of America Corp DE grew its holdings in Credo Technology Group by 161.5% during the third quarter. Bank of America Corp DE now owns 2,278,073 shares of the company's stock worth $331,710,000 after buying an additional 1,406,752 shares in the last quarter. Finally, Alliancebernstein L.P. grew its holdings in Credo Technology Group by 66.0% during the second quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company's stock worth $283,778,000 after buying an additional 1,218,504 shares in the last quarter. 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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