Credo Technology Group (NASDAQ:CRDO) Stock Price Down 2.4% - Time to Sell?

Key Points

• Credo Technology Group shares fell 2.4% to $208.14, with trading volume below its daily average. The stock remains highly valued, with a market capitalization of $38.81 billion and a P/E ratio of 83.93.
• Analysts remain broadly optimistic, with an average “Buy” rating and a $266.17 price target; several firms recently raised their targets to between $250 and $350.
• The company reported strong quarterly results, including $1.16 EPS versus $1.02 expected and 157% year-over-year revenue growth to $437 million. However, insiders sold approximately $66 million of stock over the past 90 days.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares dropped 2.4% during trading on Monday . The stock traded as low as $197.01 and last traded at $208.14. Approximately 4,974,464 shares changed hands during mid-day trading, a decline of 35% from the average daily volume of 7,640,172 shares. The stock had previously closed at $213.15.

Analyst Ratings Changes

A number of brokerages have recently issued reports on CRDO. Jefferies Financial Group boosted their price objective on shares of Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Roth Capital raised their price objective on Credo Technology Group from $200.00 to $300.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. Stifel Nicolaus lifted their price objective on Credo Technology Group from $250.00 to $350.00 and gave the company a "buy" rating in a research report on Monday, June 22nd. The Goldman Sachs Group reiterated a "buy" rating and set a $250.00 price objective on shares of Credo Technology Group in a research note on Tuesday, June 2nd. Finally, TD Cowen increased their target price on shares of Credo Technology Group from $240.00 to $260.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Buy" and an average price target of $266.17.

Credo Technology Group Trading Down 2.4%

The firm's 50-day moving average price is $235.28 and its 200-day moving average price is $170.09. The stock has a market capitalization of $38.81 billion, a PE ratio of 83.93, a PEG ratio of 0.97 and a beta of 3.20.

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

Insider Buying and Selling at Credo Technology Group

In other news, CTO Chi Fung Cheng sold 3,790 shares of the company's stock in a transaction that occurred 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 completion of the sale, the chief technology officer owned 140,358 shares of the company's stock, valued at approximately $36,312,018.18. This represents a 2.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Fariba Danesh sold 1,100 shares of the stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $236.34, for a total value of $259,974.00. Following the sale, the director directly owned 7,017 shares in the company, valued at $1,658,397.78. This trade represents a 13.55% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 274,662 shares of company stock valued at $65,966,071 in the last ninety days. 11.84% of the stock is owned by insiders.

Institutional Investors Weigh In On Credo Technology Group

Institutional investors have recently added to or reduced their stakes in the business. Crewe Advisors LLC grew its holdings in shares of Credo Technology Group by 163.1% during the fourth quarter. Crewe Advisors LLC now owns 171 shares of the company's stock valued at $25,000 after buying an additional 106 shares during the last quarter. Reflection Asset Management purchased a new stake in Credo Technology Group during the 4th quarter valued at about $25,000. Acumen Wealth Advisors LLC acquired a new position in shares of Credo Technology Group in the fourth quarter valued at about $25,000. Flagship Harbor Advisors LLC purchased a new position in shares of Credo Technology Group in the fourth quarter worth about $32,000. Finally, AlphaCentric Advisors LLC acquired a new stake in shares of Credo Technology Group during the first quarter worth about $33,000. 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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