SG Americas Securities LLC Decreases Holdings in Credo Technology Group Holding Ltd. $CRDO

Key Points

• SG Americas Securities LLC cut its CRDO stake by 38.1% in the first quarter, selling 96,374 shares and leaving it with 156,481 shares worth about $14.7 million.
• Credo Technology Group reported strong quarterly results, with EPS of $1.16 beating estimates and revenue rising 157% year over year to $437 million.
• Analyst sentiment remains upbeat: firms including Evercore, Needham, Roth Mkm, and Mizuho raised targets or ratings, with consensus on the stock at Buy and an average price target of $263.11.

SG Americas Securities LLC trimmed its holdings in Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Free Report) by 38.1% in the first quarter, according to the company in its most recent filing with the SEC. The fund owned 156,481 shares of the company's stock after selling 96,374 shares during the quarter. SG Americas Securities LLC owned 0.08% of Credo Technology Group worth $14,689,000 at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of CRDO. Vanguard Group Inc. lifted its position in Credo Technology Group by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 16,585,229 shares of the company's stock valued at $2,386,449,000 after purchasing an additional 59,849 shares during the last quarter. State Street Corp grew its holdings in shares of Credo Technology Group by 23.4% in the fourth quarter. State Street Corp now owns 4,486,320 shares of the company's stock worth $645,537,000 after purchasing an additional 849,654 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Credo Technology Group by 5.0% in the fourth quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company's stock worth $555,117,000 after purchasing an additional 184,676 shares during the last quarter. Corient Private Wealth LLC increased its stake in shares of Credo Technology Group by 239,024.5% in the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company's stock worth $517,835,000 after buying an additional 3,597,318 shares during the period. Finally, Alliancebernstein L.P. increased its stake in shares of Credo Technology Group by 66.0% in 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. Hedge funds and other institutional investors own 80.46% of the company's stock.

Credo Technology Group Trading Down 0.4%

Shares of CRDO opened at $268.03 on Friday. The firm's 50-day moving average price is $211.63 and its 200-day moving average price is $156.69. The firm has a market capitalization of $49.98 billion, a price-to-earnings ratio of 108.08, a PEG ratio of 1.23 and a beta of 3.22. Credo Technology Group Holding Ltd. has a 1-year low of $84.25 and a 1-year high of $308.67.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings results on Monday, June 1st. The company reported $1.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 32.30%. Credo Technology Group's revenue was up 157.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.20 earnings per share. On average, research analysts forecast that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current fiscal year.

Key Stories Impacting Credo Technology Group

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Evercore ISI initiated coverage on Credo Technology Group with an Outperform rating and a $325 price target, arguing the company is well positioned to benefit from expanding optical AI connectivity demand in data centers.
• Positive Sentiment: Zacks added CRDO to its Rank #1 (Strong Buy) growth stocks list, reinforcing the view that the company’s earnings and revenue momentum remain strong.
• Positive Sentiment: Recent investor commentary highlighted Credo’s strong fundamentals, including its 1.6T connectivity ramp and rapid AI data-center growth, following quarterly revenue growth of 157% year over year.
• Neutral Sentiment: 24/7 Wall St. published a price prediction piece on Credo, saying the stock has already rallied sharply this year and may now be trading near fair value.
• Negative Sentiment: Chief Technology Officer Chi Fung Cheng sold 27,500 shares worth about $7.45 million under a pre-arranged trading plan, which can weigh on sentiment even though it was not an open-market discretionary sale.
• Negative Sentiment: Seeking Alpha published a bearish downgrade on CRDO, adding a note of caution after the stock’s strong run.

Analysts Set New Price Targets

Several equities research analysts have weighed in on CRDO shares. Needham & Company LLC increased 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 report on Monday, June 1st. Roth Mkm boosted their price objective on shares of Credo Technology Group from $200.00 to $300.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Mizuho upped their price objective on shares of Credo Technology Group from $260.00 to $290.00 and gave the company an "outperform" rating in a research note on Tuesday, June 2nd. Zacks Research upgraded shares of Credo Technology Group from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 19th. Finally, Evercore began coverage on Credo Technology Group in a research note on Monday. They issued an "outperform" rating and a $325.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $263.11.

Insider Transactions at Credo Technology Group

In other Credo Technology Group news, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction on Friday, April 10th. The stock was sold at an average price of $118.25, for a total value of $3,251,875.00. Following the completion of the transaction, the chief technology officer owned 6,134,870 shares in the company, valued at approximately $725,448,377.50. This represents a 0.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Joseph Brennan sold 54,984 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $218.57, for a total value of $12,017,852.88. Following the completion of the transaction, the chief executive officer owned 367,327 shares of the company's stock, valued at approximately $80,286,662.39. This trade represents a 13.02% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 416,884 shares of company stock valued at $77,492,368. Corporate insiders own 11.84% of the company's stock.

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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