Credo Technology Group (NASDAQ:CRDO) Shares Down 2.8% - Here's Why

Key Points

• Credo Technology Group shares fell 2.8% to $226.19 in mid-day trading, with volume running 41% below the average session level.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $268.39, despite recent downgrades to “Hold.”
• The company reported strong quarterly results, including $1.16 in adjusted earnings per share and $437 million in revenue, while revenue surged 157% year over year.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price traded down 2.8% during mid-day trading on Monday . The company traded as low as $222.91 and last traded at $226.19. Approximately 4,240,158 shares were traded during mid-day trading, a decline of 41% from the average session volume of 7,194,993 shares. The stock had previously closed at $232.75.

Wall Street Analysts Forecast Growth

CRDO has been the topic of a number of recent analyst reports. Needham & Company LLC increased their price target on shares of Credo Technology Group from $220.00 to $275.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Zacks Research downgraded Credo Technology Group from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Credo Technology Group in a research report on Friday, August 21st. Roth Capital lifted their target price on Credo Technology Group from $200.00 to $300.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Finally, The Goldman Sachs Group restated a "buy" rating and set a $250.00 price target on shares of Credo Technology Group in a research note on Tuesday, June 2nd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $268.39.

Credo Technology Group Stock Performance

The firm has a fifty day moving average of $238.64 and a 200-day moving average of $187.33. The stock has a market capitalization of $42.51 billion, a price-to-earnings ratio of 91.21, a P/E/G ratio of 1.06 and a beta of 3.23.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results 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 company had revenue of $437.00 million during the quarter, compared to the consensus estimate 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 quarter in the prior year, the business earned $0.20 earnings per share. On average, analysts predict that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current year.

Insider Buying and Selling

In other news, CFO Daniel W. Fleming sold 40,000 shares of the firm's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $249.48, for a total transaction of $9,979,200.00. Following the completion of the sale, the chief financial officer directly owned 501,873 shares in the company, valued at $125,207,276.04. This trade represents a 7.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $243.06, for a total value of $6,684,150.00. Following the completion of the transaction, the chief technology officer owned 5,882,370 shares in the company, valued at approximately $1,429,768,852.20. This trade represents a 0.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 435,076 shares of company stock valued at $101,043,506. Insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Hedge funds have recently made changes to their positions in the stock. Reflection Asset Management acquired a new stake in Credo Technology Group in the fourth quarter valued at $25,000. Acumen Wealth Advisors LLC acquired a new position in Credo Technology Group during the 4th quarter worth $25,000. Orion Capital Management LLC bought a new stake in shares of Credo Technology Group in the 2nd quarter worth about $27,000. AlphaCentric Advisors LLC bought a new stake in shares of Credo Technology Group in the 1st quarter worth about $33,000. Finally, Van ECK Associates Corp acquired a new stake in shares of Credo Technology Group in the 4th quarter valued at about $37,000. 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.

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