Credo Technology Group (NASDAQ:CRDO) Shares Down 8.7% After Insider Selling

Key Points

• Credo Technology Group shares fell 8.7% to $192.67 after two insiders sold a combined 32,500 shares. CTO Chi Cheng’s 27,500-share sale was conducted under a pre-arranged Rule 10b5-1 trading plan.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $264.89; targets range as high as $350.
• The company reported strong quarterly growth, including adjusted EPS of $1.20 versus the $1.17 estimate and revenue of $479 million, up 114.7% year over year.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price dropped 8.7% on Monday following insider selling activity. The company traded as low as $189.44 and last traded at $192.67. 9,023,035 shares were traded during trading, an increase of 20% from the average session volume of 7,511,981 shares. The stock had previously closed at $210.97.

Specifically, CTO Chi Cheng sold 27,500 shares of the firm's stock in a transaction dated Wednesday, September 23rd. The stock was sold at an average price of $193.12, for a total transaction of $5,310,800.00. Following the completion of the sale, the chief technology officer directly owned 5,689,897 shares in the company, valued at $1,098,832,908.64. This trade represents a 0.48% 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. Also, insider James Laufman sold 5,000 shares of the business's stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $185.00, for a total value of $925,000.00. Following the completion of the transaction, the insider owned 169,223 shares in the company, valued at approximately $31,306,255. This trade represents a 2.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on CRDO shares. Susquehanna raised their price objective on Credo Technology Group from $235.00 to $250.00 and gave the company a "positive" rating in a research note on Tuesday, July 21st. Zacks Research lowered Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 3rd. Barclays increased their target price on Credo Technology Group from $260.00 to $300.00 and gave the company an "overweight" rating in a research note on Monday, July 20th. The Goldman Sachs Group restated a "buy" rating and issued a $250.00 price target on shares of Credo Technology Group in a research note on Tuesday, June 2nd. Finally, Stifel Nicolaus upped their price target on shares of Credo Technology Group from $250.00 to $350.00 and gave the company a "buy" rating in a report on Monday, June 22nd. 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. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $264.89.

Credo Technology Group Price Performance

The business's fifty day simple moving average is $209.32 and its 200 day simple moving average is $195.53. The stock has a market cap of $36.21 billion, a price-to-earnings ratio of 68.57, a P/E/G ratio of 0.84 and a beta of 3.22.

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

Hedge Funds Weigh In On Credo Technology Group

A number of large investors have recently bought and sold shares of the business. California State Teachers Retirement System grew its position in Credo Technology Group by 2.2% in the 1st quarter. California State Teachers Retirement System now owns 240,886 shares of the company's stock worth $22,612,000 after purchasing an additional 5,113 shares during the last quarter. Corsair Capital Management L.P. acquired a new stake in shares of Credo Technology Group in the first quarter valued at approximately $469,000. Lazard Asset Management LLC raised its holdings in shares of Credo Technology Group by 55.6% during the first quarter. Lazard Asset Management LLC now owns 67,051 shares of the company's stock valued at $6,294,000 after buying an additional 23,949 shares during the last quarter. Quantinno Capital Management LP raised its holdings in shares of Credo Technology Group by 68.4% during the first quarter. Quantinno Capital Management LP now owns 34,124 shares of the company's stock valued at $3,203,000 after buying an additional 13,859 shares during the last quarter. Finally, Estuary Capital Management LP boosted its position in shares of Credo Technology Group by 87.4% during the first quarter. Estuary Capital Management LP now owns 412,227 shares of the company's stock worth $38,696,000 after buying an additional 192,218 shares during the period. Institutional investors own 80.46% of the company's stock.

Credo Technology Group Company Profile

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for the data infrastructure market. Its products are designed to help move data efficiently within and between networking, storage and computing systems, with applications in artificial intelligence, cloud computing, telecommunications and enterprise data centers.

The company's portfolio includes serializer/deserializer (SerDes) integrated circuits, retimers, optical digital signal processors and active electrical cables.

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