Credo Technology Group (NASDAQ:CRDO) Trading Down 2.3% - What's Next?

Key Points

• Shares fell 2.3% to $180.06 on Monday with volume of ~3.62M shares (about 49% below the average); the stock carries a market cap of $33.21 billion and a P/E of ~100, reflecting a high valuation.
• Credo topped expectations for the quarter—EPS $1.07 vs. $0.78 est. and revenue $407.0M vs. $385.9M (revenue up 201.5% YoY)—and the sell‑side consensus is a Moderate Buy with an average target of $207.71 and multiple $200+ price targets.
• Company insiders sold 359,108 shares (~$45.45M) over the past three months (CFO and CTO transactions under pre‑arranged Rule 10b5‑1 plans); insiders still own 11.84% of the stock while institutional investors hold ~80.46%.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares traded down 2.3% during trading on Monday . The company traded as low as $178.88 and last traded at $180.06. 3,621,850 shares were traded during trading, a decline of 49% from the average session volume of 7,144,360 shares. The stock had previously closed at $184.38.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Roth Mkm reduced their price objective on Credo Technology Group from $250.00 to $200.00 and set a "buy" rating on the stock in a research note on Tuesday, February 10th. Weiss Ratings cut Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, April 24th. Rothschild & Co Redburn began coverage on Credo Technology Group in a research note on Friday. They set a "buy" rating and a $206.00 price objective on the stock. Craig Hallum reissued a "buy" rating and set a $200.00 target price on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Finally, Stifel Nicolaus set a $200.00 target price on shares of Credo Technology Group in a research report on Tuesday, March 3rd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $207.71.

Credo Technology Group Price Performance

The stock has a market capitalization of $33.21 billion, a price-to-earnings ratio of 100.03 and a beta of 3.17. The firm's fifty day moving average is $125.98 and its 200-day moving average is $139.49.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Monday, March 2nd. The company reported $1.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.78 by $0.29. Credo Technology Group had a return on equity of 29.63% and a net margin of 31.81%.The firm had revenue of $407.01 million for the quarter, compared to analysts' expectations of $385.94 million. During the same quarter in the prior year, the firm posted $0.25 earnings per share. Credo Technology Group's revenue for the quarter was up 201.5% compared to the same quarter last year. On average, sell-side analysts expect that Credo Technology Group Holding Ltd. will post 2.36 EPS for the current year.

Insider Activity

In other Credo Technology Group news, CFO Daniel W. Fleming sold 7,580 shares of the stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $152.63, for a total transaction of $1,156,935.40. Following the sale, the chief financial officer directly owned 433,678 shares of the company's stock, valued at approximately $66,192,273.14. This represents a 1.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction on Monday, April 27th. The stock was sold at an average price of $179.33, for a total transaction of $4,931,575.00. Following the sale, the chief technology officer directly owned 6,052,370 shares in the company, valued at $1,085,371,512.10. This trade represents a 0.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 359,108 shares of company stock valued at $45,449,126 over the last three months. Company insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

A number of large investors have recently modified their holdings of CRDO. Atlantic Union Bankshares Corp acquired a new stake in shares of Credo Technology Group in the 3rd quarter worth about $25,000. Crewe Advisors LLC increased its position in Credo Technology Group by 163.1% in the 4th quarter. Crewe Advisors LLC now owns 171 shares of the company's stock valued at $25,000 after acquiring an additional 106 shares during the period. Reflection Asset Management acquired a new stake in Credo Technology Group in the 4th quarter valued at approximately $25,000. Acumen Wealth Advisors LLC acquired a new stake in Credo Technology Group in the 4th quarter valued at approximately $25,000. Finally, First Horizon Corp acquired a new stake in Credo Technology Group in the 3rd quarter valued at approximately $26,000. 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.

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.