Credo Technology Group (NASDAQ:CRDO) Stock Price Down 3.5% - What's Next?

Key Points

• Credo Technology Group shares fell 3.5% to $222.61, with trading volume below its average. The stock remains highly volatile, with a beta of 3.23 and a market capitalization of $41.51 billion.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $268.39. Recent quarterly results exceeded expectations, including $1.16 in earnings per share and 157% year-over-year revenue growth.
• Insiders sold approximately $101 million of stock during the last quarter under pre-arranged trading plans, while institutional investors own 80.46% of the company.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price dropped 3.5% during trading on Monday . The company traded as low as $211.50 and last traded at $222.61. Approximately 4,222,353 shares changed hands during trading, a decline of 42% from the average daily volume of 7,313,103 shares. The stock had previously closed at $230.57.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on CRDO shares. Rosenblatt Securities reaffirmed a "neutral" rating and set a $215.00 price target on shares of Credo Technology Group in a research note on Monday. Weiss Ratings raised shares of Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. Rothschild & Co Redburn started coverage on Credo Technology Group in a research note on Friday, May 1st. They set a "buy" rating and a $206.00 price target on the stock. Wall Street Zen downgraded Credo Technology Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Susquehanna increased their target price on Credo Technology Group from $235.00 to $250.00 and gave the stock a "positive" rating in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $268.39.

Credo Technology Group Trading Down 3.5%

The company has a market capitalization of $41.51 billion, a PE ratio of 89.76, a PEG ratio of 1.05 and a beta of 3.23. The company's 50 day moving average price is $241.50 and its 200-day moving average price is $183.05.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its 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 return on equity of 32.30% and a net margin of 35.37%.The firm had revenue of $437.00 million for the quarter, compared to analysts' expectations of $431.80 million. During the same quarter last year, the firm earned $0.20 earnings per share. The firm's revenue for the quarter was up 157.0% compared to the same quarter last year. As a group, analysts predict that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current year.

Insider Transactions at Credo Technology Group

In other Credo Technology Group news, COO Yat Tung Lam sold 55,441 shares of Credo Technology Group stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the transaction, the chief operating officer directly owned 2,529,169 shares of the company's stock, valued at $538,763,580.38. The trade was a 2.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,473 shares of the stock in a transaction on Friday, July 31st. The stock was sold at an average price of $209.53, for a total transaction of $5,756,417.69. Following the completion of the sale, the chief technology officer directly owned 5,772,397 shares of the company's stock, valued at $1,209,490,343.41. The trade was a 0.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 435,076 shares of company stock worth $101,043,506. 11.84% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Credo Technology Group

A number of large investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System increased its position in shares of Credo Technology Group by 28,062.9% during the second quarter. California State Teachers Retirement System now owns 67,840,375 shares of the company's stock worth $18,449,190,000 after acquiring an additional 67,599,489 shares during the last quarter. Vanguard Group Inc. increased its holdings in Credo Technology Group by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 16,585,229 shares of the company's stock worth $2,386,449,000 after purchasing an additional 59,849 shares during the last quarter. State Street Corp raised its position in shares of Credo Technology Group by 23.4% in the 4th quarter. State Street Corp now owns 4,486,320 shares of the company's stock valued at $645,537,000 after purchasing an additional 849,654 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Credo Technology Group by 5.0% during the 4th quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company's stock valued at $555,117,000 after buying an additional 184,676 shares during the last quarter. Finally, Corient Private Wealth LLC boosted its stake in shares of Credo Technology Group by 239,024.5% during the 4th quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company's stock valued at $517,835,000 after buying an additional 3,597,318 shares during the last quarter. 80.46% of the stock is owned by institutional investors and hedge funds.

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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