Credo Technology Group (NASDAQ:CRDO) Stock Falls 6.5% After Insider Selling

Key Points

• Credo Technology Group shares fell 6.5% to about $197 after two insiders sold a combined 32,500 shares worth approximately $6.2 million. The sales were made under pre-arranged trading plans.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $264.89, although targets range widely and Bank of America recently reduced its target to $275.
• The company reported strong quarterly results, including $1.20 in earnings per share and $479 million in revenue, with revenue rising 114.7% year over year and exceeding analyst estimates.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price was down 6.5% on Monday after an insider sold shares in the company. The company traded as low as $198.34 and last traded at $197.2040. Approximately 1,214,500 shares were traded during mid-day trading, a decline of 84% from the average session volume of 7,473,825 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 transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 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 sale, the insider directly owned 169,223 shares of the company's stock, valued at $31,306,255. This represents a 2.87% decrease in their position. The disclosure for this sale is available in the SEC filing.

Analyst Upgrades and Downgrades

CRDO has been the topic of a number of recent analyst reports. Stifel Nicolaus raised their price objective on Credo Technology Group from $250.00 to $350.00 and gave the company a "buy" rating in a research note on Monday, June 22nd. Needham & Company LLC lifted 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. Susquehanna boosted their price objective on shares of Credo Technology Group from $235.00 to $250.00 and gave the stock a "positive" rating in a research note on Tuesday, July 21st. Wall Street Zen downgraded shares of Credo Technology Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Finally, Bank of America lowered their target price on shares of Credo Technology Group from $340.00 to $275.00 and set a "buy" rating on the stock in a research note on Wednesday, September 2nd. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $264.89.

Credo Technology Group Trading Down 7.7%

The firm's fifty day moving average price is $209.32 and its 200-day moving average price is $195.53. The company has a market cap of $36.61 billion, a P/E ratio of 69.32, a P/E/G ratio of 0.84 and a beta of 3.22.

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. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%.The business 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 business earned $0.52 earnings per share. The firm's revenue for the quarter was up 114.7% compared to the same quarter last year. As a group, research analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

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

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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