Credo Technology Group (NASDAQ:CRDO) Stock Price Down 5.5% on Insider Selling

Key Points

• Shares fell 5.5% after disclosed insider selling — CTO Chi Fung Cheng sold 30,000 shares for about $4.66M and Director Sylvia Acevedo sold 2,200 shares for about $350K, while trading volume was ~2.11M shares versus a 5.9M daily average.
• Despite the pullback, Credo reported a blowout quarter (EPS $0.67 vs. $0.49 expected; revenue $268M vs. $235M, up 272% YoY) and the stock carries an average analyst Buy rating with a $216.54 average price target.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) was down 5.5% on Wednesday following insider selling activity. The stock traded as low as $143.32 and last traded at $144.7190. Approximately 2,112,828 shares were traded during trading, a decline of 64% from the average daily volume of 5,901,332 shares. The stock had previously closed at $153.22.

Specifically, CTO Chi Fung Cheng sold 30,000 shares of Credo Technology Group stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $155.47, for a total value of $4,664,100.00. Following the completion of the sale, the chief technology officer directly owned 6,357,370 shares in the company, valued at $988,380,313.90. The trade was a 0.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Sylvia Acevedo sold 2,200 shares of the business's stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $159.18, for a total transaction of $350,196.00. Following the sale, the director owned 18,545 shares of the company's stock, valued at approximately $2,951,993.10. This represents a 10.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Zacks Research upgraded Credo Technology Group from a "hold" rating to a "strong-buy" rating in a research note on Thursday, December 4th. Rosenblatt Securities initiated coverage on Credo Technology Group in a report on Wednesday. They issued a "neutral" rating and a $170.00 target price on the stock. Stifel Nicolaus set a $160.00 target price on Credo Technology Group in a research report on Wednesday, October 1st. Mizuho upped their price target on shares of Credo Technology Group from $165.00 to $225.00 and gave the company an "outperform" rating in a research report on Tuesday, December 2nd. Finally, Roth Capital increased their price objective 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. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $216.54.

Credo Technology Group Stock Performance

The stock has a fifty day moving average of $152.39 and a 200 day moving average of $140.24. The company has a market capitalization of $26.02 billion, a PE ratio of 126.57 and a beta of 2.66.

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

Institutional Trading of Credo Technology Group

Hedge funds have recently modified their holdings of the company. NewEdge Advisors LLC grew its holdings in shares of Credo Technology Group by 128.4% in the first quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock valued at $284,000 after purchasing an additional 3,972 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Credo Technology Group by 63.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock worth $61,235,000 after buying an additional 589,151 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Credo Technology Group by 2.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company's stock worth $12,480,000 after buying an additional 7,107 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its holdings in shares of Credo Technology Group by 907.9% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 75,419 shares of the company's stock worth $7,060,000 after buying an additional 67,936 shares during the last quarter. Finally, Farther Finance Advisors LLC raised its position in shares of Credo Technology Group by 850.6% during the 2nd quarter. Farther Finance Advisors LLC now owns 4,135 shares of the company's stock valued at $383,000 after buying an additional 3,700 shares in the last quarter. 80.46% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.