Credo Technology Group (NASDAQ:CRDO) Stock Price Down 7.3% - Here's What Happened

Key Points

• Credo Technology Group shares fell 7.3% on Friday, trading as low as $218 after closing at $236.50 the prior session, on volume far below normal.
• Despite the pullback, analysts remain largely bullish: several firms recently raised price targets, and the consensus rating is a Buy with an average target of $266.17.
• The company’s latest earnings beat expectations, with EPS of $1.16 on revenue of $437 million, up 157% from a year ago; however, recent insider selling included share sales by the CEO and CTO.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price traded down 7.3% on Friday . The company traded as low as $218.00 and last traded at $219.3110. Approximately 589,949 shares changed hands during trading, a decline of 92% from the average session volume of 7,626,385 shares. The stock had previously closed at $236.50.

Analysts Set New Price Targets

A number of research firms have recently weighed in on CRDO. Stifel Nicolaus raised their target price on Credo Technology Group from $250.00 to $350.00 and gave the company a "buy" rating in a report on Monday, June 22nd. Rosenblatt Securities boosted their target price on shares of Credo Technology Group from $175.00 to $215.00 and gave the company a "neutral" rating in a research note on Tuesday, June 2nd. Jefferies Financial Group increased their price target on Credo Technology Group from $225.00 to $270.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. Zacks Research raised shares of Credo Technology Group from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 19th. Finally, Bank of America lifted their target price on Credo Technology Group from $252.00 to $340.00 and gave the company a "buy" rating in a report on Tuesday, June 23rd. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $266.17.

Credo Technology Group Stock Down 8.5%

The company has a market capitalization of $40.36 billion, a PE ratio of 88.12, a price-to-earnings-growth ratio of 1.04 and a beta of 3.20. The firm's 50-day moving average is $234.46 and its 200-day moving average is $169.58.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data 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. The company had revenue of $437.00 million for the quarter, compared to analysts' expectations 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 for the quarter was up 157.0% compared to the same quarter last year. During the same period last year, the firm posted $0.20 EPS. As a group, equities research analysts predict that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current year.

Insider Activity

In related news, CEO William Joseph Brennan sold 54,984 shares of Credo Technology Group stock in a transaction on Friday, June 5th. The shares were sold at an average price of $218.57, for a total value of $12,017,852.88. Following the transaction, the chief executive officer directly owned 367,327 shares of the company's stock, valued at $80,286,662.39. The trade was a 13.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $243.06, for a total transaction of $6,684,150.00. Following the completion of the transaction, the chief technology officer owned 5,882,370 shares in the company, valued at $1,429,768,852.20. The trade was a 0.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 302,162 shares of company stock valued at $70,897,646. 11.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Credo Technology Group

Hedge funds have recently made changes to their positions in the business. Crewe Advisors LLC lifted its holdings in Credo Technology Group by 163.1% in the fourth quarter. Crewe Advisors LLC now owns 171 shares of the company's stock worth $25,000 after buying an additional 106 shares during the period. Reflection Asset Management bought a new position in shares of Credo Technology Group during the fourth quarter valued at approximately $25,000. Acumen Wealth Advisors LLC purchased a new position in Credo Technology Group during the fourth quarter valued at $25,000. Flagship Harbor Advisors LLC purchased a new position in Credo Technology Group in the fourth quarter worth about $32,000. Finally, Smallwood Wealth Investment Management LLC purchased a new position in Credo Technology Group in the 4th quarter worth approximately $36,000. 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.

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