Credo Technology Group (NASDAQ:CRDO) Stock Price Down 4.8% Following Insider Selling

Key Points

• Credo Technology Group shares fell 4.8% to about $208 after insider selling, with trading volume 81% below the average. COO Yat Lam and CTO Chi Cheng sold shares through pre-arranged Rule 10b5-1 plans, primarily to cover tax obligations tied to equity awards.
• The company reported strong quarterly results, with EPS of $1.20 beating estimates and revenue of $479 million increasing 114.7% year over year. Analysts expect $5.02 in EPS for the current year.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $262.67, although recent target changes and ratings were mixed. Institutional investors own 80.46% of Credo’s shares.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) fell 4.8% on Monday after an insider sold shares in the company. The stock traded as low as $206.35 and last traded at $208.1210. 1,404,463 shares changed hands during trading, a decline of 81% from the average daily volume of 7,497,591 shares. The stock had previously closed at $218.64.

Specifically, COO Yat Lam sold 50,000 shares of the firm's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $205.22, for a total value of $10,261,000.00. Following the completion of the transaction, the chief operating officer owned 2,254,169 shares in the company, valued at $462,600,562.18. This trade represents a 2.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Chi Cheng sold 27,500 shares of the firm's stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total transaction of $5,333,075.00. Following the completion of the transaction, the chief technology officer owned 5,662,397 shares of the company's stock, valued at $1,098,108,650.21. This trade represents a 0.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, COO Yat Lam sold 50,000 shares of the company's stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $206.30, for a total transaction of $10,315,000.00. Following the sale, the chief operating officer owned 2,479,169 shares of the company's stock, valued at approximately $511,452,564.70. This represents a 1.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

CRDO has been the topic of several research analyst reports. Wall Street Zen cut shares of Credo Technology Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Rosenblatt Securities upped their target price on Credo Technology Group from $215.00 to $235.00 and gave the stock a "neutral" rating in a research note on Wednesday, September 2nd. Barclays raised their price target on Credo Technology Group from $260.00 to $300.00 and gave the company an "overweight" rating in a report on Monday, July 20th. Stifel Nicolaus lowered their target price on shares of Credo Technology Group from $350.00 to $310.00 and set a "buy" rating on the stock in a research note on Monday. Finally, Weiss Ratings raised shares of Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, September 18th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Credo Technology Group currently has an average rating of "Moderate Buy" and a consensus target price of $262.67.

Credo Technology Group Trading Down 3.6%

The business's fifty day simple moving average is $207.21 and its 200-day simple moving average is $198.59. The firm has a market cap of $39.62 billion, a P/E ratio of 74.42, a price-to-earnings-growth ratio of 0.87 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate 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 company had revenue of $479.00 million for the quarter, compared to analysts' expectations of $473.30 million. During the same period last year, the firm earned $0.52 earnings per share. Credo Technology Group's quarterly revenue was up 114.7% on a year-over-year basis. Analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds and other institutional investors have recently made changes to their positions in CRDO. Polaris Financial Partners purchased a new stake in Credo Technology Group in the third quarter worth $681,000. GoalVest Advisory LLC increased its position in Credo Technology Group by 49,226.5% during the 3rd quarter. GoalVest Advisory LLC now owns 24,170 shares of the company's stock valued at $4,708,000 after purchasing an additional 24,121 shares during the period. Burkett Financial Services LLC bought a new position in Credo Technology Group in the 3rd quarter worth $33,000. QRG Capital Management Inc. raised its holdings in Credo Technology Group by 20.8% in the 2nd quarter. QRG Capital Management Inc. now owns 6,527 shares of the company's stock worth $1,774,000 after purchasing an additional 1,125 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. purchased a new stake in shares of Credo Technology Group in the 2nd quarter worth about $548,000. 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 data infrastructure. Its technologies are designed to improve the performance, power efficiency and reliability of connections used in cloud computing, artificial intelligence, high-performance computing, telecommunications and enterprise networks.

The company's product portfolio includes serializer/deserializer (SerDes) intellectual property, integrated circuits, active electrical cables and optical connectivity products.

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