Insider Selling: Credo Technology Group (NASDAQ:CRDO) CTO Sells $4,513,300.00 in Stock

Key Points

• Credo Technology Group CTO Chi Cheng sold 27,500 shares at an average price of $164.12, generating $4.51 million. The sale was conducted under a pre-arranged Rule 10b5-1 plan, and Cheng still owned approximately 5.55 million shares afterward.
• Cheng has made several additional stock sales since late July, while CRDO shares recently traded at $165.29—well below their 50-day average of $191.39 and 52-week high of $308.67.
• Credo recently exceeded quarterly earnings and revenue estimates, with revenue up 114.7% year over year. Analysts maintain a consensus “Moderate Buy” rating and an average price target of $262.67.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) CTO Chi Cheng sold 27,500 shares of the stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $164.12, for a total value of $4,513,300.00. Following the transaction, the chief technology officer owned 5,552,397 shares of the company's stock, valued at approximately $911,259,395.64. This represents a 0.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Chi Fung Cheng also recently made the following trade(s):

• On Tuesday, October 20th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $172.62, for a total transaction of $4,747,050.00.
• On Tuesday, October 13th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $192.99, for a total value of $5,307,225.00.
• On Monday, October 12th, Chi Cheng sold 3,790 shares of Credo Technology Group stock. The shares were sold at an average price of $201.84, for a total transaction of $764,973.60.
• On Tuesday, October 6th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $221.48, for a total transaction of $6,090,700.00.
• On Tuesday, September 29th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $193.93, for a total transaction of $5,333,075.00.
• On Wednesday, September 23rd, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $193.12, for a total transaction of $5,310,800.00.
• On Thursday, September 17th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $166.38, for a total transaction of $4,575,450.00.
• On Friday, September 4th, Chi Cheng sold 3,790 shares of Credo Technology Group stock. The stock was sold at an average price of $170.00, for a total value of $644,300.00.
• On Friday, July 31st, Chi Cheng sold 27,473 shares of Credo Technology Group stock. The shares were sold at an average price of $209.53, for a total value of $5,756,417.69.

Credo Technology Group Stock Performance

CRDO stock traded down $8.40 during mid-day trading on Thursday, reaching $165.29. The company had a trading volume of 6,774,896 shares, compared to its average volume of 7,603,385. The company has a market capitalization of $31.07 billion, a price-to-earnings ratio of 58.82, a price-to-earnings-growth ratio of 0.59 and a beta of 3.25. The firm has a fifty day simple moving average of $191.39 and a 200 day simple moving average of $180.79. Credo Technology Group Holding Ltd. has a fifty-two week low of $86.49 and a fifty-two week high of $308.67.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. The firm had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The business's quarterly revenue was up 114.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.52 earnings per share. As a group, analysts predict that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on CRDO. TD Cowen boosted their target price on Credo Technology Group from $260.00 to $300.00 and gave the company a "buy" rating in a report on Tuesday, August 18th. Rosenblatt Securities reiterated a "neutral" rating and issued a $235.00 price target on shares of Credo Technology Group in a report on Thursday, October 15th. Mizuho decreased their price objective on shares of Credo Technology Group from $290.00 to $245.00 and set an "outperform" rating on the stock in a research report on Monday, September 21st. JPMorgan Chase & Co. dropped their price objective on Credo Technology Group from $335.00 to $310.00 and set an "overweight" rating for the company in a research report on Wednesday, September 2nd. Finally, Barclays lifted their price objective on Credo Technology Group from $260.00 to $300.00 and gave the company an "overweight" rating in a research report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Credo Technology Group presently has an average rating of "Moderate Buy" and a consensus target price of $262.67.

Institutional Trading of Credo Technology Group

A number of hedge funds and other institutional investors have recently made changes to their positions in CRDO. Bank of America Corp DE lifted its stake in Credo Technology Group by 13.7% during the second quarter. Bank of America Corp DE now owns 2,182,764 shares of the company's stock worth $593,603,000 after purchasing an additional 262,479 shares during the last quarter. Atreides Management LP lifted its stake in shares of Credo Technology Group by 3.5% in the 2nd quarter. Atreides Management LP now owns 1,129,285 shares of the company's stock worth $307,109,000 after acquiring an additional 38,052 shares during the period. The Manufacturers Life Insurance Company increased its position in shares of Credo Technology Group by 192.1% during the 1st quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company's stock valued at $98,290,000 after purchasing an additional 688,596 shares during the period. H&H International Investment LLC raised its position in Credo Technology Group by 431.6% in the first quarter. H&H International Investment LLC now owns 751,200 shares of the company's stock worth $70,515,000 after acquiring an additional 609,900 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in Credo Technology Group by 0.5% during the first quarter. Dimensional Fund Advisors LP now owns 703,122 shares of the company's stock valued at $65,949,000 after purchasing an additional 3,501 shares during the last quarter. Institutional investors own 80.46% of the company's stock.

Credo Technology Group Company Profile

Credo Technology Group Holding Ltd. is a fabless semiconductor and connectivity solutions company that develops high-speed data-infrastructure technologies. Its products are designed to help data centers and communications networks move large volumes of information with lower power consumption and improved signal integrity.

The company's portfolio includes serializer/deserializer (SerDes) intellectual property, application-specific integrated circuits, active electrical cables, optical digital signal processors and related connectivity platforms.

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