Convergence Investment Partners LLC Reduces Stock Position in Credo Technology Group Holding Ltd. $CRDO

Key Points

• Convergence Investment Partners cut its stake in Credo by 37.6% in Q3, selling 10,461 shares and retaining 17,369 shares valued at about $2.53 million.
• Company insiders — including the CEO (50,000 shares, ~$7.66M) and CTO (55,000 shares, ~$9.61M) — have been selling heavily; insiders sold 820,585 shares (~$124.14M) over the last three months, though they still own 11.84% of the stock.
• Credo reported strong quarterly results (EPS $0.67 vs. $0.49 est.; revenue $268.0M vs. $235.0M est.) but trades at a high valuation (market cap $22.63B, P/E 109.9); analysts’ consensus rating is a Buy with a $216.54 target price.

Convergence Investment Partners LLC decreased its stake in Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Free Report) by 37.6% in the third quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 17,369 shares of the company's stock after selling 10,461 shares during the quarter. Convergence Investment Partners LLC's holdings in Credo Technology Group were worth $2,529,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Versant Capital Management Inc boosted its position in shares of Credo Technology Group by 18.0% during the third quarter. Versant Capital Management Inc now owns 663 shares of the company's stock valued at $97,000 after buying an additional 101 shares during the period. GAMMA Investing LLC lifted its stake in shares of Credo Technology Group by 6.7% during the 3rd quarter. GAMMA Investing LLC now owns 1,891 shares of the company's stock worth $275,000 after acquiring an additional 118 shares during the last quarter. Nisa Investment Advisors LLC boosted its holdings in Credo Technology Group by 3.5% during the 2nd quarter. Nisa Investment Advisors LLC now owns 3,684 shares of the company's stock valued at $341,000 after acquiring an additional 126 shares during the period. Blue Trust Inc. grew its position in Credo Technology Group by 3.9% in the 2nd quarter. Blue Trust Inc. now owns 4,108 shares of the company's stock valued at $380,000 after acquiring an additional 154 shares during the last quarter. Finally, Signaturefd LLC increased its stake in Credo Technology Group by 32.4% in the second quarter. Signaturefd LLC now owns 703 shares of the company's stock worth $65,000 after purchasing an additional 172 shares during the period. 80.46% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Credo Technology Group

In other news, CEO William Joseph Brennan sold 50,000 shares of the stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $153.16, for a total transaction of $7,658,000.00. Following the completion of the sale, the chief executive officer owned 1,892,502 shares in the company, valued at approximately $289,855,606.32. This represents a 2.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CTO Chi Fung Cheng sold 55,000 shares of the stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $174.70, for a total value of $9,608,500.00. Following the completion of the sale, the chief technology officer owned 6,613,961 shares of the company's stock, valued at approximately $1,155,458,986.70. This trade represents a 0.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 820,585 shares of company stock valued at $124,138,752. Corporate insiders own 11.84% of the company's stock.

Credo Technology Group Trading Down 3.2%

CRDO opened at $125.28 on Monday. The firm has a market cap of $22.63 billion, a price-to-earnings ratio of 109.90 and a beta of 2.65. Credo Technology Group Holding Ltd. has a 12 month low of $29.09 and a 12 month high of $213.80. The stock has a fifty day moving average price of $150.50 and a 200-day moving average price of $142.12.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its earnings results on Monday, December 1st. The company reported $0.67 EPS for the quarter, topping analysts' consensus estimates of $0.49 by $0.18. Credo Technology Group had a net margin of 26.63% and a return on equity of 25.28%. The business had revenue of $268.03 million during the quarter, compared to the consensus estimate of $234.99 million. During the same period in the previous year, the company posted $0.07 earnings per share. The firm's revenue was up 272.1% on a year-over-year basis. On average, equities research analysts forecast that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Analyst Ratings Changes

A number of research analysts have recently commented on CRDO shares. Weiss Ratings restated a "hold (c)" rating on shares of Credo Technology Group in a report on Monday, December 29th. Susquehanna raised their target price on shares of Credo Technology Group from $165.00 to $175.00 and gave the stock a "positive" rating in a research report on Wednesday, October 22nd. KGI Securities raised shares of Credo Technology Group from a "hold" rating to an "outperform" rating and set a $230.00 price target for the company in a research note on Tuesday, December 2nd. Wolfe Research set a $240.00 price objective on Credo Technology Group in a research note on Tuesday, December 2nd. Finally, Needham & Company LLC lifted their target price on Credo Technology Group from $190.00 to $220.00 and gave the company a "buy" rating in a research report on Tuesday, December 2nd. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $216.54.

Credo Technology Group 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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