Credo Technology Group (NASDAQ:CRDO) Trading Down 7.7% on Insider Selling

Key Points

• Credo Technology Group shares fell 7.7% to about $177.51 after CTO Chi Fung Cheng sold 27,500 shares for approximately $6.1 million under a pre-arranged Rule 10b5-1 plan.
• Wall Street remains broadly positive, with the stock carrying a consensus “Buy” rating and an average price target of $266.17; recent targets range as high as $350.
• The company reported strong quarterly results, including $1.16 in EPS and $437 million in revenue, up 157% year over year, while institutional investors own 80.46% of outstanding shares.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price was down 7.7% on Wednesday following insider selling activity. The company traded as low as $177.00 and last traded at $177.5050. 6,867,182 shares were traded during trading, a decline of 10% from the average session volume of 7,634,056 shares. The stock had previously closed at $192.28.

Specifically, CTO Chi Fung Cheng sold 27,500 shares of the firm's stock in a transaction on Tuesday, July 21st. The stock was sold at an average price of $222.34, for a total transaction of $6,114,350.00. Following the sale, the chief technology officer owned 5,827,370 shares in the company, valued at $1,295,657,445.80. This trade represents a 0.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the company. Rosenblatt Securities upped their target price on 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 raised 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. Needham & Company LLC raised their price target on Credo Technology Group from $220.00 to $275.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Stifel Nicolaus lifted their price target on Credo Technology Group from $250.00 to $350.00 and gave the company a "buy" rating in a report on Monday, June 22nd. Finally, Barclays upped their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an "overweight" rating in a research note on Monday, July 20th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Credo Technology Group has an average rating of "Buy" and a consensus price target of $266.17.

Credo Technology Group Trading Down 7.7%

The company's 50 day moving average price is $236.79 and its 200-day moving average price is $170.98. The company has a market capitalization of $33.10 billion, a PE ratio of 71.57, a PEG ratio of 0.95 and a beta of 3.20.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results on Monday, June 1st. The company reported $1.16 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.14. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The business had revenue of $437.00 million for the quarter, compared to analyst estimates of $431.80 million. During the same period last year, the company posted $0.20 EPS. The business's quarterly revenue was up 157.0% on a year-over-year basis. As a group, analysts predict that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current year.

Institutional Investors Weigh In On Credo Technology Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in shares of Credo Technology Group by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 16,585,229 shares of the company's stock worth $2,386,449,000 after purchasing an additional 59,849 shares during the period. State Street Corp raised its holdings in Credo Technology Group by 23.4% in the fourth quarter. State Street Corp now owns 4,486,320 shares of the company's stock valued at $645,537,000 after buying an additional 849,654 shares during the period. Geode Capital Management LLC lifted its position in Credo Technology Group by 5.0% during the fourth quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company's stock valued at $555,117,000 after buying an additional 184,676 shares in the last quarter. Corient Private Wealth LLC lifted its position in Credo Technology Group by 239,024.5% during the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company's stock valued at $517,835,000 after buying an additional 3,597,318 shares in the last quarter. Finally, Alliancebernstein L.P. grew its stake in Credo Technology Group by 66.0% during the second quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company's stock worth $283,778,000 after buying an additional 1,218,504 shares during the period. 80.46% of the stock is currently owned by institutional investors and hedge funds.

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.