Capital Research Global Investors Sells 578,220 Shares of Credo Technology Group Holding Ltd. $CRDO

Key Points

• Capital Research Global Investors cut its Credo Technology Group stake by 26.2% in the fourth quarter, selling 578,220 shares and leaving it with 1.63 million shares valued at about $234.7 million.
• Insider selling has been active, including CFO Daniel W. Fleming and insider James Laufman, with insiders selling 386,608 shares worth $50.4 million over the last 90 days.
• Analysts remain constructive after Credo’s earnings beat, with the company reporting $1.16 EPS on $437 million in revenue and multiple firms raising price targets; the stock carries a consensus Moderate Buy rating and an average target of $248.41.

Capital Research Global Investors lessened its position in shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Free Report) by 26.2% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,631,019 shares of the company's stock after selling 578,220 shares during the period. Capital Research Global Investors owned 0.90% of Credo Technology Group worth $234,687,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of CRDO. Atlantic Union Bankshares Corp bought a new position in Credo Technology Group during the third quarter worth $25,000. Crewe Advisors LLC raised its stake in Credo Technology Group by 163.1% during the fourth quarter. Crewe Advisors LLC now owns 171 shares of the company's stock worth $25,000 after buying an additional 106 shares during the last quarter. Flagship Harbor Advisors LLC bought a new stake in Credo Technology Group in the fourth quarter valued at $32,000. Smallwood Wealth Investment Management LLC bought a new stake in Credo Technology Group in the fourth quarter valued at $36,000. Finally, Smartleaf Asset Management LLC increased its stake in Credo Technology Group by 133.6% in the third quarter. Smartleaf Asset Management LLC now owns 257 shares of the company's stock valued at $38,000 after purchasing an additional 147 shares in the last quarter. Institutional investors own 80.46% of the company's stock.

Insider Buying and Selling at Credo Technology Group

In other news, CFO Daniel W. Fleming sold 7,580 shares of the business's stock in a transaction dated 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 completion of the sale, the chief financial officer directly owned 433,678 shares of the company's stock, valued at $66,192,273.14. The trade was a 1.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James Laufman sold 10,000 shares of the business's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $164.41, for a total transaction of $1,644,100.00. Following the sale, the insider directly owned 198,609 shares of the company's stock, valued at approximately $32,653,305.69. The trade was a 4.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 386,608 shares of company stock valued at $50,371,351. Insiders own 11.84% of the company's stock.

Analyst Upgrades and Downgrades

CRDO has been the subject of several research analyst reports. Stifel Nicolaus set a $250.00 price target on shares of Credo Technology Group in a research note on Wednesday, May 27th. Rothschild & Co Redburn initiated coverage on shares of Credo Technology Group in a research note on Friday, May 1st. They issued a "buy" rating and a $206.00 price target for the company. Needham & Company LLC lifted their price target on shares of Credo Technology Group from $220.00 to $275.00 and gave the company a "buy" rating in a research note on Monday, June 1st. Jefferies Financial Group lifted their price target on shares of Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $250.00 price target on shares of Credo Technology Group in a research note on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $248.41.

Credo Technology Group Price Performance

NASDAQ:CRDO opened at $206.89 on Monday. The firm has a 50-day moving average of $169.65 and a 200-day moving average of $147.21. The company has a market cap of $38.16 billion, a PE ratio of 83.42, a PEG ratio of 1.34 and a beta of 3.22. Credo Technology Group Holding Ltd. has a one year low of $66.75 and a one year high of $245.95.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its earnings results on Monday, June 1st. The company reported $1.16 EPS for the quarter, topping the consensus estimate of $1.02 by $0.14. The company had revenue of $437.00 million during the quarter, compared to the consensus estimate of $431.80 million. Credo Technology Group had a net margin of 35.37% and a return on equity of 36.99%. The firm's revenue for the quarter was up 157.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.20 earnings per share. On average, equities research analysts expect that Credo Technology Group Holding Ltd. will post 3.93 earnings per share for the current fiscal year.

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.

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