Credo Technology Group (NASDAQ:CRDO) Shares Down 4.8% After Insider Selling

Key Points

• Credo Technology Group shares fell 4.8% to $165.29 after CTO Chi Cheng sold 27,500 shares worth approximately $4.5 million under a pre-arranged Rule 10b5-1 trading plan.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $262.67, although several firms recently lowered their targets to $310.
• Credo reported strong quarterly results, including $1.20 in EPS and $479 million in revenue, up 114.7% year over year; institutional investors own 80.46% of the company’s stock.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded down 4.8% on Thursday following insider selling activity. The company traded as low as $160.40 and last traded at $165.29. 6,751,276 shares were traded during trading, a decline of 11% from the average session volume of 7,603,385 shares. The stock had previously closed at $173.69.

Specifically, CTO Chi Cheng sold 27,500 shares of Credo Technology Group stock in a transaction that occurred on Tuesday, October 27th. The shares were 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 $911,259,395.64. This trade represents a 0.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

CRDO has been the subject of several research analyst reports. Weiss Ratings cut shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, October 6th. JPMorgan Chase & Co. cut their price target on Credo Technology Group from $335.00 to $310.00 and set an "overweight" rating on the stock in a research note on Wednesday, September 2nd. Wall Street Zen downgraded Credo Technology Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Stifel Nicolaus lowered their target price on shares of Credo Technology Group from $350.00 to $310.00 and set a "buy" rating for the company in a research note on Monday, October 5th. Finally, Susquehanna raised their price target on Credo Technology Group from $235.00 to $250.00 and gave the stock a "positive" rating in a research report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $262.67.

Credo Technology Group Stock Down 4.8%

The company has a market cap of $31.07 billion, a P/E ratio of 58.82, a price-to-earnings-growth ratio of 0.59 and a beta of 3.25. The stock has a 50 day moving average price of $191.39 and a two-hundred day moving average price of $180.79.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its earnings results on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, topping the consensus estimate of $1.17 by $0.03. The company had revenue of $479.00 million for the quarter, compared to analysts' expectations 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 revenue for the quarter was up 114.7% on a year-over-year basis. During the same period last year, the firm earned $0.52 earnings per share. Equities analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds and other institutional investors have recently modified their holdings of CRDO. Orion Capital Management LLC purchased a new position in shares of Credo Technology Group during the second quarter worth approximately $27,000. Hoey Investments Inc. bought a new stake in Credo Technology Group in the 3rd quarter worth $31,000. AlphaCentric Advisors LLC purchased a new position in Credo Technology Group during the 1st quarter valued at about $33,000. Burkett Financial Services LLC purchased a new stake in shares of Credo Technology Group in the 3rd quarter worth about $33,000. Finally, Western Wealth Management LLC bought a new stake in shares of Credo Technology Group during the first quarter valued at approximately $38,000. 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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