Credo Technology Group (NASDAQ:CRDO) Trading Down 8.3% - What's Next?

Key Points

• Credo Technology Group shares fell 8.3% on Thursday, trading as low as $201.93 after closing at $226.74 the day before, though volume was only slightly above average.
• Wall Street remains broadly bullish on the stock: several analysts recently raised price targets, and the consensus rating is a Buy with an average target price of $263.11.
• Recent fundamentals were strong as the company beat quarterly earnings and revenue expectations, with revenue up 157% year over year; however, insiders have also been selling shares in recent weeks.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) were down 8.3% during mid-day trading on Thursday . The stock traded as low as $201.93 and last traded at $207.97. 7,965,857 shares traded hands during trading, an increase of 3% from the average session volume of 7,763,922 shares. The stock had previously closed at $226.74.

Analyst Ratings Changes

Several analysts have recently weighed in on the company. Needham & Company LLC upped their price objective on Credo Technology Group from $220.00 to $275.00 and gave the company a "buy" rating in a report on Monday, June 1st. Rothschild & Co Redburn assumed coverage on Credo Technology Group in a report on Friday, May 1st. They set a "buy" rating and a $206.00 target price on the stock. JPMorgan Chase & Co. boosted their price target on shares of Credo Technology Group from $230.00 to $250.00 and gave the stock an "overweight" rating in a research report 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, Mizuho upped their price target on shares of Credo Technology Group from $260.00 to $290.00 and gave the company an "outperform" rating in a report on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, Credo Technology Group currently has an average rating of "Buy" and an average target price of $263.11.

Credo Technology Group Trading Down 8.3%

The business has a 50-day moving average price of $231.43 and a 200 day moving average price of $166.44. The company has a market cap of $38.78 billion, a price-to-earnings ratio of 83.86, a P/E/G ratio of 1.08 and a beta of 3.20.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings data 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. The business had revenue of $437.00 million during the quarter, compared to analyst estimates of $431.80 million. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The company's revenue was up 157.0% compared to the same quarter last year. During the same period last year, the company posted $0.20 EPS. On average, analysts anticipate that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current year.

Insider Buying and Selling

In other Credo Technology Group news, CEO William Joseph Brennan sold 54,984 shares of the company's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $218.57, for a total transaction of $12,017,852.88. Following the completion of the sale, the chief executive officer directly owned 367,327 shares of the company's stock, valued at approximately $80,286,662.39. This represents a 13.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Chi Fung Cheng sold 27,500 shares of the firm's stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $269.84, for a total transaction of $7,420,600.00. Following the completion of the transaction, the chief technology officer owned 5,909,870 shares of the company's stock, valued at approximately $1,594,719,320.80. The trade was a 0.46% 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. In the last quarter, insiders have sold 329,662 shares of company stock valued at $76,068,196. 11.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Credo Technology Group

Large investors have recently made changes to their positions in the company. Mirae Asset Global Investments Co. Ltd. grew its holdings in shares of Credo Technology Group by 9.4% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 271,067 shares of the company's stock valued at $39,004,000 after acquiring an additional 23,332 shares in the last quarter. M&T Bank Corp raised its holdings in shares of Credo Technology Group by 428.8% during the fourth quarter. M&T Bank Corp now owns 13,427 shares of the company's stock worth $1,932,000 after acquiring an additional 10,888 shares in the last quarter. FengHe Fund Management Pte. Ltd. boosted its position in Credo Technology Group by 5.7% during the fourth quarter. FengHe Fund Management Pte. Ltd. now owns 162,269 shares of the company's stock valued at $23,349,000 after purchasing an additional 8,769 shares during the last quarter. Second Line Capital LLC acquired a new stake in Credo Technology Group during the third quarter valued at $4,283,000. Finally, Nordea Investment Management AB purchased a new position in Credo Technology Group in the fourth quarter valued at about $2,084,000. Institutional investors and hedge funds 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.

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.