Credo Technology Group (NASDAQ:CRDO) Stock Price Down 4.5% After Insider Selling

Key Points

• Credo Technology Group shares fell 4.5% to $160.31 after CTO Chi Cheng sold 3,790 shares for approximately $644,300, reducing his position by 2.7%.
• Despite the decline, analysts maintain a generally positive outlook, with a “Moderate Buy” consensus rating and an average price target of $267.39; 15 analysts rate the stock a Buy.
• The company reported strong quarterly results, with adjusted earnings of $1.20 per share 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 stock price was down 4.5% on Thursday following insider selling activity. The stock traded as low as $159.20 and last traded at $160.31. 6,795,622 shares changed hands during mid-day trading, a decline of 8% from the average daily volume of 7,414,369 shares. The stock had previously closed at $167.92.

Specifically, CTO Chi Cheng sold 3,790 shares of the company's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $170.00, for a total value of $644,300.00. Following the transaction, the chief technology officer owned 136,568 shares of the company's stock, valued at $23,216,560. This represents a 2.70% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink.

Analysts Set New Price Targets

CRDO has been the subject of several research analyst reports. Zacks Research downgraded Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 3rd. Mizuho upped their price target on shares of Credo Technology Group from $260.00 to $290.00 and gave the stock an "outperform" rating in a report on Tuesday, June 2nd. Weiss Ratings lowered shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, September 4th. Roth Capital upped their target price on shares of Credo Technology Group from $200.00 to $300.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. Finally, Jefferies Financial Group raised their target price on shares of Credo Technology Group from $225.00 to $270.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Credo Technology Group presently has an average rating of "Moderate Buy" and a consensus target price of $267.39.

Credo Technology Group Stock Performance

The firm has a market cap of $30.13 billion, a P/E ratio of 57.05, a price-to-earnings-growth ratio of 0.67 and a beta of 3.22. The firm's fifty day moving average price is $224.88 and its 200 day moving average price is $190.34.

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

Institutional Trading of Credo Technology Group

Several hedge funds and other institutional investors have recently bought and sold shares of CRDO. Sequoia Financial Advisors LLC increased its holdings in shares of Credo Technology Group by 19.0% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 6,659 shares of the company's stock valued at $1,811,000 after acquiring an additional 1,063 shares during the period. IPG Investment Advisors LLC purchased a new stake in shares of Credo Technology Group during the 2nd quarter worth $3,078,000. Integrated Wealth Concepts LLC boosted its position in Credo Technology Group by 68.5% during the second quarter. Integrated Wealth Concepts LLC now owns 15,962 shares of the company's stock valued at $4,341,000 after purchasing an additional 6,489 shares in the last quarter. NewEdge Advisors LLC boosted its position in Credo Technology Group by 56.0% during the second quarter. NewEdge Advisors LLC now owns 9,176 shares of the company's stock valued at $2,495,000 after purchasing an additional 3,293 shares in the last quarter. Finally, GFG Capital LLC purchased a new position in Credo Technology Group in the second quarter valued at about $214,000. 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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