Credo Technology Group (NASDAQ:CRDO) Shares Gap Down After Insider Selling

Key Points

• Credo Technology Group's stock price gapped down from $149.38 to $139.84 after insider selling by CTO Chi Fung Cheng and Director Lip Bu Tan, who sold significant shares, impacting investor sentiment.
• Despite recent insider sales, analysts remain optimistic, with TD Cowen raising the price target from $140 to $160, while the current consensus rating for the stock is "Buy" with a target price of $126.27.
• The company reported a quarterly revenue of $223.07 million, a substantial increase of 273.6% year-over-year, although its EPS of $0.34 fell short of the consensus estimate of $0.36.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price gapped down before the market opened on Thursday following insider selling activity. The stock had previously closed at $149.38, but opened at $139.84. Credo Technology Group shares last traded at $142.20, with a volume of 1,895,336 shares trading hands.

Specifically, CTO Chi Fung Cheng sold 55,000 shares of the company's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $164.98, for a total value of $9,073,900.00. Following the transaction, the chief technology officer directly owned 6,943,961 shares in the company, valued at approximately $1,145,614,685.78. This represents a 0.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Lip Bu Tan sold 20,000 shares of the company's stock in a transaction dated Thursday, September 18th. The shares were sold at an average price of $175.12, for a total transaction of $3,502,400.00. Following the completion of the transaction, the director owned 422,180 shares in the company, valued at $73,932,161.60. This trade represents a 4.52% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

CRDO has been the topic of a number of analyst reports. TD Cowen increased their price objective on shares of Credo Technology Group from $140.00 to $160.00 and gave the stock a "buy" rating in a research note on Thursday, September 4th. Noble Financial upgraded shares of Credo Technology Group to a "strong-buy" rating in a report on Tuesday, June 3rd. Wall Street Zen downgraded shares of Credo Technology Group from a "buy" rating to a "hold" rating in a research report on Saturday, September 20th. Stifel Nicolaus set a $155.00 price target on shares of Credo Technology Group in a research report on Thursday, September 4th. Finally, Cowen reaffirmed a "buy" rating on shares of Credo Technology Group in a report on Thursday, September 4th. Two analysts have rated the stock with a Strong Buy rating and thirteen have given a Buy rating to the company. Based on data from MarketBeat.com, Credo Technology Group currently has a consensus rating of "Buy" and a consensus target price of $126.27.

Credo Technology Group Price Performance

The business has a 50 day moving average price of $126.48 and a two-hundred day moving average price of $83.24. The stock has a market cap of $24.99 billion, a PE ratio of 214.80 and a beta of 2.59.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings data 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 during the quarter, compared to the consensus estimate of $190.63 million. During the same quarter in the previous year, the business posted $0.04 earnings per share. Credo Technology Group'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. On average, sell-side analysts forecast that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Credo Technology Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Credo Technology Group by 24.6% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 303,656 shares of the company's stock valued at $20,409,000 after purchasing an additional 59,937 shares during the period. GTS Securities LLC purchased a new stake in shares of Credo Technology Group in the 4th quarter valued at about $323,000. Forum Financial Management LP acquired a new position in Credo Technology Group in the 4th quarter valued at about $253,000. Mackenzie Financial Corp increased its position in Credo Technology Group by 395.3% during the 4th quarter. Mackenzie Financial Corp now owns 38,144 shares of the company's stock worth $2,564,000 after purchasing an additional 30,443 shares during the period. Finally, B. Riley Wealth Advisors Inc. acquired a new position in Credo Technology Group during the 4th quarter worth approximately $498,000. 80.46% of the stock is currently owned by hedge funds and other institutional investors.

About Credo Technology Group

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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