Credo Technology Group (NASDAQ:CRDO) Trading Down 4.2% - Time to Sell?

Key Points

• Credo Technology Group shares fell 4.2% on Monday, with heavier-than-normal trading volume of 11.46 million shares versus an average of 7.09 million. The stock traded between $223.54 and $226.10 after closing at $236.03 the prior session.
• Despite the drop, analysts remain broadly positive on CRDO, with a consensus rating of “Buy” and an average price target of $214.18. Recent firms including Jefferies, Goldman Sachs, and Rothschild & Co Redburn maintained or initiated bullish views.
• The company recently posted strong quarterly results, including EPS of $1.07 versus $0.78 expected and revenue of $407.01 million, up 201.5% year over year. However, the article also notes recent insider selling by the CEO and CTO, totaling hundreds of thousands of shares over the past three months.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded down 4.2% during trading on Monday . The company traded as low as $223.54 and last traded at $226.10. 11,462,694 shares changed hands during trading, an increase of 62% from the average session volume of 7,085,354 shares. The stock had previously closed at $236.03.

Wall Street Analyst Weigh In

Several research firms recently issued reports on CRDO. Jefferies Financial Group began coverage on shares of Credo Technology Group in a research report on Monday, April 13th. They issued a "buy" rating and a $175.00 target price on the stock. Rosenblatt Securities raised their target price on shares of Credo Technology Group from $125.00 to $175.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 15th. The Goldman Sachs Group raised their target price on shares of Credo Technology Group from $150.00 to $170.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Susquehanna decreased their target price on shares of Credo Technology Group from $230.00 to $170.00 and set a "positive" rating on the stock in a research report on Tuesday, March 3rd. Finally, Rothschild & Co Redburn initiated coverage on shares of Credo Technology Group in a research report on Friday, May 1st. They issued a "buy" rating and a $206.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $214.18.

Credo Technology Group Stock Down 4.2%

The company has a 50 day simple moving average of $158.17 and a 200-day simple moving average of $144.80. The stock has a market cap of $41.70 billion, a price-to-earnings ratio of 125.61 and a beta of 3.22.

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. The firm had revenue of $407.01 million for the quarter, compared to analysts' expectations of $385.94 million. Credo Technology Group had a return on equity of 29.63% and a net margin of 31.81%.Credo Technology Group's revenue for the quarter was up 201.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.25 earnings per share. On average, equities research analysts expect that Credo Technology Group Holding Ltd. will post 2.36 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO William Joseph Brennan sold 50,000 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $117.68, for a total value of $5,884,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,782,502 shares of the company's stock, valued at $209,764,835.36. This represents a 2.73% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $117.60, for a total value of $3,234,000.00. Following the completion of the transaction, the chief technology officer directly owned 6,272,370 shares of the company's stock, valued at $737,630,712. This trade represents a 0.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 386,608 shares of company stock valued at $50,371,351 over the last three months. Corporate insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

Several large investors have recently modified their holdings of the stock. Glenmede Trust Co. NA boosted its stake in shares of Credo Technology Group by 2.0% during the 1st quarter. Glenmede Trust Co. NA now owns 5,706 shares of the company's stock worth $536,000 after acquiring an additional 114 shares in the last quarter. Segall Bryant & Hamill LLC lifted its holdings in shares of Credo Technology Group by 12.7% in the first quarter. Segall Bryant & Hamill LLC now owns 111,621 shares of the company's stock valued at $10,478,000 after purchasing an additional 12,616 shares in the last quarter. Verus Capital Partners LLC purchased a new stake in shares of Credo Technology Group during the first quarter worth $506,000. Western Wealth Management LLC purchased a new stake in shares of Credo Technology Group during the first quarter worth $38,000. Finally, Edgestream Partners L.P. raised its holdings in shares of Credo Technology Group by 28.4% during the first quarter. Edgestream Partners L.P. now owns 22,168 shares of the company's stock worth $2,081,000 after acquiring an additional 4,904 shares in the last quarter. 80.46% of the stock is owned by 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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