Credo Technology Group (NASDAQ:CRDO) Stock Falls 8.7% Following Insider Selling

Key Points

• Credo Technology Group shares fell 8.7% to $150.99 after CTO Chi Cheng sold 27,500 shares for approximately $4.5 million under a pre-arranged Rule 10b5-1 plan. Trading volume rose 62% above the average.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $262.67, despite some firms lowering their targets or ratings.
• The company reported strong recent operating results, including 114.7% year-over-year revenue growth, $1.20 quarterly EPS versus a $1.17 estimate, and $479 million in revenue versus a $473.3 million consensus.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price fell 8.7% on Friday after an insider sold shares in the company. The stock traded as low as $144.44 and last traded at $150.99. Approximately 12,388,149 shares changed hands during trading, an increase of 62% from the average session volume of 7,628,844 shares. The stock had previously closed at $165.29.

Specifically, CTO Chi Cheng sold 27,500 shares of the firm's stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $164.12, for a total transaction of $4,513,300.00. Following the completion of the sale, 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 position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

CRDO has been the subject of a number of research 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. Evercore set a $292.00 price objective on Credo Technology Group in a report on Wednesday, September 2nd. Barclays lifted their price target on Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a report on Monday, July 20th. Wall Street Zen lowered Credo Technology Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Finally, Bank of America dropped their target price on Credo Technology Group from $340.00 to $275.00 and set a "buy" rating for the company in a report on Wednesday, September 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $262.67.

Credo Technology Group Trading Down 8.7%

The stock has a market cap of $28.38 billion, a P/E ratio of 53.73, a price-to-earnings-growth ratio of 0.69 and a beta of 3.25. The stock has a 50 day simple moving average of $190.00 and a 200 day simple moving average of $180.87.

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, beating analysts' consensus estimates of $1.17 by $0.03. The firm had revenue of $479.00 million during the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period in the prior year, the company posted $0.52 EPS. Equities analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE increased its position in Credo Technology Group by 13.7% during the 2nd quarter. Bank of America Corp DE now owns 2,182,764 shares of the company's stock valued at $593,603,000 after purchasing an additional 262,479 shares during the period. Atreides Management LP boosted its position in shares of 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 purchasing an additional 38,052 shares in the last quarter. The Manufacturers Life Insurance Company grew its stake in shares of Credo Technology Group by 192.1% in the 1st quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company's stock valued at $98,290,000 after buying an additional 688,596 shares during the period. Value Aligned Research Advisors LLC bought a new stake in Credo Technology Group in the 2nd quarter valued at about $91,919,000. Finally, Zevenbergen Capital Investments LLC increased its position in Credo Technology Group by 4.9% in the 3rd quarter. Zevenbergen Capital Investments LLC now owns 418,991 shares of the company's stock valued at $81,615,000 after buying an additional 19,685 shares in the last quarter. 80.46% of the stock is owned by institutional investors.

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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