Credo Technology Group (NASDAQ:CRDO) Stock Price Down 1.1% After Insider Selling

Key Points

• Credo Technology Group's stock price fell 1.1% following significant insider selling, with 70,016 shares being sold by the CEO and a director, leading to a decline in their positions.
• Equities analysts show a generally positive outlook for Credo, with multiple firms upgrading their ratings and setting price targets as high as $165.00.
• The company's recent earnings report revealed a revenue increase of 273.6% year-over-year, although it missed the consensus EPS estimate by $0.02.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price was down 1.1% on Tuesday following insider selling activity. The stock traded as low as $155.21 and last traded at $162.26. Approximately 4,814,415 shares changed hands during mid-day trading, a decline of 9% from the average daily volume of 5,286,522 shares. The stock had previously closed at $164.10.

Specifically, Director Lip Bu Tan sold 20,000 shares of Credo Technology Group stock in a transaction on Thursday, September 18th. The shares were sold at an average price of $175.12, for a total value of $3,502,400.00. Following the completion of the transaction, the director directly owned 422,180 shares of the company's stock, valued at $73,932,161.60. This trade represents a 4.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO William Joseph Brennan sold 50,000 shares of the firm's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $164.11, for a total transaction of $8,205,500.00. Following the completion of the sale, the chief executive officer owned 1,992,502 shares of the company's stock, valued at $326,989,503.22. This trade represents a 2.45% decrease in their position. The disclosure for this sale can be found here. In other news, CEO William Joseph Brennan sold 18,016 shares of the firm's stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $164.11, for a total value of $2,956,605.76. Following the completion of the sale, the chief executive officer owned 369,173 shares in the company, valued at approximately $60,584,981.03. This trade represents a 4.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on CRDO shares. Noble Financial upgraded shares of Credo Technology Group to a "strong-buy" rating in a report on Tuesday, June 3rd. William Blair assumed coverage on shares of Credo Technology Group in a report on Thursday, September 18th. They issued an "outperform" rating for the company. Barclays lifted their price objective on shares of Credo Technology Group from $85.00 to $165.00 and gave the stock an "overweight" rating in a research report on Thursday, September 4th. Cowen restated a "buy" rating on shares of Credo Technology Group in a research note on Thursday, September 4th. Finally, TD Cowen lifted their price objective on shares of Credo Technology Group from $140.00 to $160.00 and gave the company a "buy" rating in a research note on Thursday, September 4th. Two investment analysts have rated the stock with a Strong Buy rating and thirteen have given a Buy rating to the stock. According to data from MarketBeat.com, Credo Technology Group presently has an average rating of "Buy" and an average price target of $126.27.

Credo Technology Group Stock Down 1.1%

The company's 50-day moving average price is $124.32 and its 200-day moving average price is $82.22. The firm has a market cap of $28.07 billion, a price-to-earnings ratio of 242.18 and a beta of 2.59.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results on Wednesday, September 3rd. The company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.36 by ($0.02). Credo Technology Group had a net margin of 20.85% and a return on equity of 19.02%. The firm had revenue of $223.07 million during the quarter, compared to analyst estimates of $190.63 million. During the same period last year, the business earned $0.04 EPS. The firm's 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 predict that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds have recently modified their holdings of CRDO. JPMorgan Chase & Co. grew its position in shares of Credo Technology Group by 36.5% during the second quarter. JPMorgan Chase & Co. now owns 6,508,934 shares of the company's stock worth $602,662,000 after acquiring an additional 1,739,844 shares during the last quarter. Nuveen LLC purchased a new position in shares of Credo Technology Group during the first quarter worth approximately $52,636,000. Alliancebernstein L.P. grew its position in Credo Technology Group by 66.0% in the 2nd quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company's stock valued at $283,778,000 after buying an additional 1,218,504 shares during the last quarter. 1832 Asset Management L.P. purchased a new position in Credo Technology Group in the 2nd quarter valued at $82,479,000. Finally, Swedbank AB grew its position in Credo Technology Group by 29.5% in the 1st quarter. Swedbank AB now owns 3,219,125 shares of the company's stock valued at $129,280,000 after buying an additional 733,811 shares during the last quarter. 80.46% of the stock is currently owned by hedge funds and other 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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