Credo Technology Group (NASDAQ:CRDO) Stock Price Down 3.9% on Insider Selling

Key Points

• Stock fell 3.9% to about $128 after insider selling — CTO Chi Fung Cheng sold 30,000 shares on Jan. 22 (and another 30,000 on Jan. 15), trimming his position by roughly 0.47%.
• Analysts remain largely bullish, with an average "Buy" rating and an average target of $216.54 (notable targets include Roth MKM $250 and Wolfe Research $240).
• Credo posted strong results, beating estimates with $0.67 EPS and revenue up 272% year‑over‑year to $268.03 million, though the stock carries a high P/E (~116.8) and $23.1B market cap.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded down 3.9% during trading on Monday following insider selling activity. The stock traded as low as $127.33 and last traded at $128.02. 4,863,706 shares changed hands during mid-day trading, a decline of 23% from the average session volume of 6,315,143 shares. The stock had previously closed at $133.16.

Specifically, CTO Chi Fung Cheng sold 30,000 shares of Credo Technology Group stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $136.33, for a total transaction of $4,089,900.00. Following the completion of the transaction, the chief technology officer owned 6,327,370 shares of the company's stock, valued at $862,610,352.10. The trade was a 0.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CTO Chi Fung Cheng sold 30,000 shares of Credo Technology Group stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $155.47, for a total transaction of $4,664,100.00. Following the transaction, the chief technology officer owned 6,357,370 shares of the company's stock, valued at approximately $988,380,313.90. The trade was a 0.47% decrease in their position. The disclosure for this sale is available in the SEC filing.

Analysts Set New Price Targets

A number of analysts recently commented on CRDO shares. Wall Street Zen raised Credo Technology Group from a "hold" rating to a "buy" rating in a research note on Sunday, September 28th. Roth Mkm raised their price target on shares of Credo Technology Group from $170.00 to $250.00 and gave the stock a "buy" rating in a research note on Tuesday, December 2nd. Wolfe Research set a $240.00 price target on Credo Technology Group in a report on Tuesday, December 2nd. Susquehanna raised their price objective on Credo Technology Group from $165.00 to $175.00 and gave the stock a "positive" rating in a report on Wednesday, October 22nd. Finally, Rosenblatt Securities started coverage on Credo Technology Group in a research report on Wednesday, January 21st. They issued a "neutral" rating and a $170.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $216.54.

Credo Technology Group Price Performance

The firm's 50-day moving average price is $151.21 and its 200-day moving average price is $141.32. The company has a market cap of $23.12 billion, a price-to-earnings ratio of 116.81 and a beta of 2.66.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings results on Monday, December 1st. The company reported $0.67 earnings per share for the quarter, topping analysts' consensus estimates of $0.49 by $0.18. Credo Technology Group had a net margin of 26.63% and a return on equity of 25.28%. The firm had revenue of $268.03 million during the quarter, compared to analysts' expectations of $234.99 million. During the same period in the prior year, the company earned $0.07 EPS. The firm's revenue was up 272.1% on a year-over-year basis. On average, sell-side analysts anticipate that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current year.

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds and other institutional investors have recently bought and sold shares of CRDO. JPMorgan Chase & Co. raised its stake 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 valued at $602,662,000 after purchasing an additional 1,739,844 shares during the period. Bank of America Corp DE grew its holdings in Credo Technology Group by 161.5% during the 3rd quarter. Bank of America Corp DE now owns 2,278,073 shares of the company's stock valued at $331,710,000 after purchasing an additional 1,406,752 shares in the last quarter. Rafferty Asset Management LLC acquired a new stake in Credo Technology Group during the 3rd quarter valued at $183,553,000. Alliancebernstein L.P. increased its stake in Credo Technology Group by 66.0% during the 2nd 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 during the period. Finally, Marshall Wace LLP lifted its holdings in Credo Technology Group by 2,537.7% in the 3rd quarter. Marshall Wace LLP now owns 1,150,000 shares of the company's stock worth $167,452,000 after buying an additional 1,106,401 shares in the last quarter. 80.46% of the stock is owned by institutional investors and hedge funds.

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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