Credo Technology Group (NASDAQ:CRDO) Trading Down 4.9% - Time to Sell?

Key Points

• Credo Technology Group shares fell 4.9% on Friday, closing at $206.89 after trading as low as $202.68, with volume more than doubling its daily average.
• Despite the pullback, analysts remain broadly positive: the stock carries a Moderate Buy consensus rating and an average price target of $248.41, with several firms recently raising targets.
• The company’s latest quarterly results were strong, with EPS of $1.16 beating estimates and revenue rising 157% year over year to $437 million; however, recent insider selling has been notable.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) dropped 4.9% during trading on Friday . The stock traded as low as $202.68 and last traded at $206.89. Approximately 15,561,107 shares changed hands during trading, an increase of 113% from the average daily volume of 7,310,080 shares. The stock had previously closed at $217.50.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on CRDO. Rosenblatt Securities boosted their price objective on shares of Credo Technology Group from $175.00 to $215.00 and gave the stock a "neutral" rating in a research note on Tuesday. The Goldman Sachs Group reiterated a "buy" rating and issued a $250.00 target price on shares of Credo Technology Group in a research note on Tuesday. Craig Hallum reiterated a "buy" rating and issued a $200.00 target price on shares of Credo Technology Group in a report on Tuesday, March 3rd. TD Cowen boosted their target price on shares of Credo Technology Group from $240.00 to $260.00 and gave the stock a "buy" rating in a research report on Tuesday. Finally, Rothschild & Co Redburn began coverage on Credo Technology Group in a research report on Friday, May 1st. They issued a "buy" rating and a $206.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $248.41.

Credo Technology Group Trading Down 4.9%

The stock has a market capitalization of $38.16 billion, a P/E ratio of 83.42, a P/E/G ratio of 1.44 and a beta of 3.22. The business's fifty day simple moving average is $167.59 and its two-hundred day simple moving average is $146.77.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Monday, June 1st. The company reported $1.16 EPS for the quarter, topping analysts' consensus estimates of $1.02 by $0.14. Credo Technology Group had a return on equity of 36.99% and a net margin of 35.37%.The company had revenue of $437.00 million during the quarter, compared to the consensus estimate of $431.80 million. During the same quarter last year, the company earned $0.20 EPS. The company's quarterly revenue was up 157.0% on a year-over-year basis. On average, equities research analysts anticipate that Credo Technology Group Holding Ltd. will post 3.78 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO William Joseph Brennan sold 50,000 shares of Credo Technology Group stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $117.68, for a total transaction of $5,884,000.00. Following the transaction, the chief executive officer directly owned 1,782,502 shares of the company's stock, valued at $209,764,835.36. This trade represents a 2.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CTO Chi Fung Cheng sold 27,500 shares of the company's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $117.60, for a total transaction of $3,234,000.00. Following the completion of the sale, the chief technology officer owned 6,272,370 shares of the company's stock, valued at approximately $737,630,712. This represents a 0.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 386,608 shares of company stock worth $50,371,351 over the last quarter. 11.84% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. NewEdge Advisors LLC increased its holdings in Credo Technology Group by 128.4% during the 1st quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock worth $284,000 after purchasing an additional 3,972 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in Credo Technology Group by 63.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock worth $61,235,000 after purchasing an additional 589,151 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Credo Technology Group by 2.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company's stock valued at $12,480,000 after purchasing an additional 7,107 shares in the last quarter. CW Advisors LLC acquired a new stake in Credo Technology Group in the 2nd quarter valued at $288,000. Finally, EverSource Wealth Advisors LLC increased its stake in Credo Technology Group by 198.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock valued at $46,000 after buying an additional 333 shares during the last quarter. Institutional investors own 80.46% of the company's stock.

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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