Credo Technology Group (NASDAQ:CRDO) Trading Down 3.1% - Here's What Happened

Key Points

• Credo Technology Group shares fell 3.1% to $232.75, with trading volume down 53% from its average. The stock has a $43.4 billion market capitalization and high volatility, reflected in its 3.23 beta.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $268.39, despite some recent downgrades to “Hold.” Barclays raised its target to $300, while Rosenblatt issued a $215 target.
• Credo reported strong quarterly results, including $1.16 in EPS and $437 million in revenue, up 157% year over year. However, insiders sold about 435,076 shares worth $101 million over the past quarter, while institutional investors own 80.46% of the stock.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded down 3.1% during trading on Friday . The stock traded as low as $228.60 and last traded at $232.75. 3,378,702 shares traded hands during trading, a decline of 53% from the average session volume of 7,212,031 shares. The stock had previously closed at $240.24.

Analysts Set New Price Targets

CRDO has been the topic of several recent analyst reports. Barclays upped their target price on shares of 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. raised their price objective on Credo Technology Group from $230.00 to $250.00 and gave the company an "overweight" rating in a research note on Tuesday, June 2nd. Zacks Research downgraded Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 3rd. Wall Street Zen cut Credo Technology Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Rosenblatt Securities reissued a "neutral" rating and issued a $215.00 price objective on shares of Credo Technology Group in a research note on Monday. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Credo Technology Group has a consensus rating of "Moderate Buy" and an average target price of $268.39.

Credo Technology Group Trading Down 3.1%

The stock has a market cap of $43.40 billion, a PE ratio of 93.85, a P/E/G ratio of 1.04 and a beta of 3.23. The company's 50 day moving average is $239.42 and its 200-day moving average is $186.56.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its quarterly earnings results on Monday, June 1st. The company reported $1.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.14. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The business had revenue of $437.00 million during the quarter, compared to analyst estimates of $431.80 million. During the same quarter in the previous year, the firm earned $0.20 earnings per share. The business's revenue was up 157.0% compared to the same quarter last year. As a group, analysts forecast that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current year.

Insider Buying and Selling

In related news, COO Yat Tung Lam sold 55,441 shares of the company's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the transaction, the chief operating officer directly owned 2,529,169 shares in the company, valued at $538,763,580.38. This represents a 2.15% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,500 shares of the company's stock in a transaction dated 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 $1,429,768,852.20. This represents a 0.47% decrease in their position. 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 quarter, insiders have sold 435,076 shares of company stock worth $101,043,506. 11.84% of the stock is owned by company insiders.

Institutional Trading of Credo Technology Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. NewEdge Advisors LLC grew its stake in shares of Credo Technology Group by 128.4% in the 1st quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock worth $284,000 after purchasing an additional 3,972 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in Credo Technology Group by 63.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock valued at $61,235,000 after acquiring an additional 589,151 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Credo Technology Group by 2.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company's stock worth $12,480,000 after buying an additional 7,107 shares in the last quarter. CW Advisors LLC acquired a new stake in Credo Technology Group during the second quarter valued at $288,000. Finally, EverSource Wealth Advisors LLC grew its stake in shares of Credo Technology Group by 198.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock valued at $46,000 after buying an additional 333 shares in the last quarter. 80.46% of the stock is currently owned by institutional investors.

Credo Technology Group Company Profile

Credo Technology Group, Inc NASDAQ: CRDO is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo's product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.

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