Credo Technology Group (NASDAQ:CRDO) Stock Falls 7.3% - Time to Sell?

Key Points

• Credo Technology Group shares fell 7.3% to around $140, with trading volume slightly above its average. The stock’s high beta of 3.29 indicates elevated volatility.
• Despite the decline, analysts maintain a broadly positive outlook: Credo has a “Moderate Buy” consensus rating and an average price target of $262.67, well above the current price.
• The company reported strong quarterly results, including $1.20 in earnings per share, $479 million in revenue, and 114.7% year-over-year revenue growth. However, insiders have sold roughly $67.2 million of shares over the past 90 days, while institutional investors own 80.46% of the stock.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) dropped 7.3% during mid-day trading on Monday. The stock traded as low as $138.88 and last traded at $140.02. Approximately 8,124,520 shares were traded during trading, an increase of 6% from the average daily volume of 7,632,131 shares. The stock had previously closed at $150.99.

Wall Street Analysts Forecast Growth

Several analysts recently commented on CRDO shares. Stifel Nicolaus lowered their target price on Credo Technology Group from $350.00 to $310.00 and set a "buy" rating on the stock in a research report on Monday, October 5th. Barclays boosted their price target on Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a research report on Monday, July 20th. JPMorgan Chase & Co. decreased their price target on Credo Technology Group from $335.00 to $310.00 and set an "overweight" rating for the company in a research note on Wednesday, September 2nd. Evercore set a $292.00 price target on Credo Technology Group in a report on Wednesday, September 2nd. Finally, Mizuho cut 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 note on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Credo Technology Group presently has an average rating of "Moderate Buy" and an average price target of $262.67.

Credo Technology Group Trading Down 7.3%

The firm has a 50-day moving average price of $188.40 and a 200-day moving average price of $180.84. The company has a market capitalization of $26.32 billion, a price-to-earnings ratio of 49.83, a PEG ratio of 0.60 and a beta of 3.29.

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

Insider Buying and Selling at Credo Technology Group

In other news, COO Yat Lam sold 50,000 shares of the business's stock in a transaction on Friday, September 25th. The stock was sold at an average price of $206.30, for a total transaction of $10,315,000.00. Following the sale, the chief operating officer directly owned 2,479,169 shares of the company's stock, valued at $511,452,564.70. The trade was a 1.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Brennan sold 16,672 shares of the company's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $151.88, for a total value of $2,532,143.36. Following the sale, the chief executive officer directly owned 1,600,830 shares of the company's stock, valued at approximately $243,134,060.40. This represents a 1.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 352,538 shares of company stock valued at $67,200,077. Corporate insiders own 9.06% of the company's stock.

Institutional Trading of Credo Technology Group

A number of hedge funds have recently bought and sold shares of the company. Bank of America Corp DE raised its position 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 valued at $593,603,000 after buying an additional 262,479 shares during the period. Atreides Management LP boosted its position in Credo Technology Group by 3.5% during 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 boosted its position in 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 worth $98,290,000 after acquiring an additional 688,596 shares during the period. H&H International Investment LLC boosted its position in Credo Technology Group by 431.6% during the 1st 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 during the period. Finally, Dimensional Fund Advisors LP grew its stake in Credo Technology Group by 0.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 703,122 shares of the company's stock valued at $65,949,000 after acquiring an additional 3,501 shares in the last quarter. 80.46% of the stock is owned by hedge funds and other institutional investors.

About Credo Technology Group

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.