Credo Technology Group (NASDAQ:CRDO) Trading Down 7.6% Following Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) dropped 7.6% on Tuesday after an insider sold shares in the company. The company traded as low as $184.68 and last traded at $192.28. Approximately 6,644,209 shares traded hands during trading, a decline of 13% from the average daily volume of 7,630,686 shares. The stock had previously closed at $208.14.

Specifically, CTO Chi Fung Cheng sold 27,500 shares of the firm’s stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $222.34, for a total transaction of $6,114,350.00. Following the completion of the transaction, the chief technology officer owned 5,827,370 shares of the company’s stock, valued at $1,295,657,445.80. This trade represents a 0.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. JPMorgan Chase & Co. boosted their target price on shares of Credo Technology Group from $230.00 to $250.00 and gave the company an “overweight” rating in a research report on Tuesday, June 2nd. Susquehanna increased their price target on Credo Technology Group from $235.00 to $250.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. Jefferies Financial Group lifted their price objective on Credo Technology Group from $225.00 to $270.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Weiss Ratings raised Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, May 26th. Finally, Zacks Research upgraded Credo Technology Group from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 19th. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $266.17.

Credo Technology Group Stock Performance

The firm’s 50 day moving average is $236.32 and its 200-day moving average is $170.62. The stock has a market capitalization of $35.86 billion, a price-to-earnings ratio of 77.53, a PEG ratio of 0.97 and a beta of 3.20.

Credo Technology Group (NASDAQ:CRDO) last announced 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 firm had revenue of $437.00 million for the quarter, compared to the consensus estimate of $431.80 million. During the same period in the prior year, the firm posted $0.20 earnings per share. The firm’s quarterly revenue was up 157.0% compared to the same quarter last year. As a group, sell-side analysts forecast that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current year.

Institutional Investors Weigh In On Credo Technology Group

Several hedge funds have recently modified their holdings of CRDO. Mirae Asset Global Investments Co. Ltd. increased its holdings in Credo Technology Group by 9.4% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 271,067 shares of the company’s stock worth $39,004,000 after acquiring an additional 23,332 shares in the last quarter. FengHe Fund Management Pte. Ltd. raised its position in Credo Technology Group by 5.7% during the fourth quarter. FengHe Fund Management Pte. Ltd. now owns 162,269 shares of the company’s stock worth $23,349,000 after acquiring an additional 8,769 shares during the period. M&T Bank Corp lifted its holdings in Credo Technology Group by 428.8% during the fourth quarter. M&T Bank Corp now owns 13,427 shares of the company’s stock valued at $1,932,000 after purchasing an additional 10,888 shares in the last quarter. Teacher Retirement System of Texas lifted its holdings in Credo Technology Group by 486.2% during the fourth quarter. Teacher Retirement System of Texas now owns 239,721 shares of the company’s stock valued at $34,493,000 after purchasing an additional 198,826 shares in the last quarter. Finally, TimesSquare Capital Management LLC grew its position in shares of Credo Technology Group by 5.5% in the fourth quarter. TimesSquare Capital Management LLC now owns 264,181 shares of the company’s stock valued at $38,013,000 after purchasing an additional 13,881 shares during the period. 80.46% of the stock is owned by hedge funds and other 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.