Credo Technology Group (NASDAQ:CRDO) Stock Price Down 7.9% - Time to Sell?

Key Points

• Credo Technology Group shares fell 7.9% to about $150.09, with trading volume 42% above average. The stock remains highly volatile, with a beta of 3.22, and trades well below its 50-day and 200-day moving averages.
• Despite the selloff, Wall Street maintains a “Moderate Buy” consensus, with 15 Buy, one Strong Buy, and three Hold ratings. Analysts’ average price target is $267.39, substantially above the current price.
• Credo reported strong quarterly results, including $1.20 EPS versus $1.17 expected and 114.7% year-over-year revenue growth to $479 million. However, insiders sold approximately $71.8 million of stock last quarter, mostly through pre-arranged trading plans.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price traded down 7.9% during trading on Monday . The company traded as low as $149.14 and last traded at $150.09. Approximately 10,565,266 shares were traded during mid-day trading, an increase of 42% from the average session volume of 7,424,136 shares. The stock had previously closed at $162.95.

Wall Street Analyst Weigh In

CRDO has been the subject of several recent analyst reports. 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. Susquehanna boosted their target price on Credo Technology Group from $235.00 to $250.00 and gave the stock a "positive" rating in a report on Tuesday, July 21st. The Goldman Sachs Group restated a "buy" rating and set a $250.00 price target on shares of Credo Technology Group in a research report on Tuesday, June 2nd. Stifel Nicolaus raised their price target on Credo Technology Group from $250.00 to $350.00 and gave the company a "buy" rating in a report on Monday, June 22nd. Finally, Zacks Research downgraded Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $267.39.

Credo Technology Group Stock Performance

The stock has a market cap of $28.21 billion, a price-to-earnings ratio of 53.41, a PEG ratio of 0.65 and a beta of 3.22. The firm's 50-day simple moving average is $221.67 and its two-hundred day simple moving average is $190.87.

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

Insider Buying and Selling

In other Credo Technology Group news, CTO Chi Cheng sold 27,500 shares of the company's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $243.06, for a total transaction of $6,684,150.00. Following the transaction, the chief technology officer owned 5,882,370 shares of the company's stock, valued at approximately $1,429,768,852.20. This represents a 0.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Fleming sold 7,580 shares of the stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $245.88, for a total value of $1,863,770.40. Following the completion of the transaction, the chief financial officer owned 504,708 shares in the company, valued at $124,097,603.04. The trade was a 1.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 313,074 shares of company stock worth $71,827,816 in the last quarter. Insiders own 9.06% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

Several institutional investors have recently modified their holdings of the business. Sequoia Financial Advisors LLC lifted its holdings in Credo Technology Group by 19.0% in the second quarter. Sequoia Financial Advisors LLC now owns 6,659 shares of the company's stock valued at $1,811,000 after buying an additional 1,063 shares during the period. IPG Investment Advisors LLC acquired a new stake in Credo Technology Group during the 2nd quarter worth $3,078,000. Integrated Wealth Concepts LLC raised its position in shares of Credo Technology Group by 68.5% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 15,962 shares of the company's stock valued at $4,341,000 after acquiring an additional 6,489 shares during the last quarter. NewEdge Advisors LLC raised its position in shares of Credo Technology Group by 56.0% during the 2nd quarter. NewEdge Advisors LLC now owns 9,176 shares of the company's stock valued at $2,495,000 after acquiring an additional 3,293 shares during the last quarter. Finally, GFG Capital LLC acquired a new position in shares of Credo Technology Group in the 2nd quarter valued at $214,000. Institutional investors and hedge funds own 80.46% of the company's stock.

About Credo Technology Group

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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