Credo Technology Group (NASDAQ:CRDO) Stock: Insider Yat Tung Lam Sells 50,000 Shares

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) COO Yat Lam sold 50,000 shares of the company’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $205.22, for a total transaction of $10,261,000.00. Following the transaction, the chief operating officer owned 2,254,169 shares of the company’s stock, valued at $462,600,562.18. This represents a 2.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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.

Yat Tung Lam also recently made the following trade(s):

• On Friday, September 25th, Yat Lam sold 50,000 shares of Credo Technology Group stock. The shares were sold at an average price of $206.30, for a total transaction of $10,315,000.00.
• On Friday, July 31st, Yat Lam sold 50,000 shares of Credo Technology Group stock. The shares were sold at an average price of $213.33, for a total transaction of $10,666,500.00.
• On Friday, July 31st, Yat Lam sold 55,441 shares of Credo Technology Group stock. The stock was sold at an average price of $213.02, for a total transaction of $11,810,041.82.

Credo Technology Group Stock Performance

Shares of NASDAQ:CRDO traded up $8.47 during trading hours on Friday, hitting $218.64. The stock had a trading volume of 10,555,948 shares, compared to its average volume of 7,534,299. The stock’s fifty day simple moving average is $207.10 and its 200 day simple moving average is $197.87. The firm has a market capitalization of $41.09 billion, a price-to-earnings ratio of 77.81, a PEG ratio of 0.78 and a beta of 3.25. Credo Technology Group Holding Ltd. has a 1-year low of $86.49 and a 1-year high of $308.67.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings data 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 business had revenue of $479.00 million during the quarter, compared to the consensus estimate 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 quarterly revenue was up 114.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.52 earnings per share. As a group, research analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Analyst Ratings Changes

A number of brokerages have weighed in on CRDO. Evercore set a $292.00 price target on shares of Credo Technology Group in a report on Wednesday, September 2nd. Barclays increased their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a research note on Monday, July 20th. TD Cowen raised their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock a “buy” rating in a report on Tuesday, August 18th. Stifel Nicolaus upped 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, Rosenblatt Securities increased their price objective on Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a research report on Wednesday, September 2nd. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $264.89.

Credo Technology Group News Roundup

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Credo’s high-speed connectivity products are positioned to benefit as AI infrastructure spending expands beyond processors to the networking and cabling required to connect large data-center clusters. Recent coverage highlights the company as a potential beneficiary of this next phase of AI investment. AI Spending Is Entering Its Next Phase
• Positive Sentiment: Credo’s latest quarterly results continue to support the bullish growth narrative: revenue rose 114.7% year over year to $479 million, while earnings of $1.20 per share exceeded the $1.17 consensus estimate. Momentum-focused coverage notes that the stock has gained since the report and is attracting continued investor interest. Credo Strong Momentum Stock
• Positive Sentiment: Sell-side sentiment remains favorable, with Credo carrying a “Moderate Buy” consensus rating and an average analyst price target of $264.89. This provides a positive backdrop for the shares, although the stock’s elevated valuation means continued execution is important. Credo Moderate Buy Rating
• Neutral Sentiment: CTO Chi Cheng sold 27,500 shares for approximately $5.3 million under a pre-arranged Rule 10b5-1 trading plan. The sale reduced his ownership by only 0.48%, limiting its significance because it was planned and he retains a substantial stake. CTO Insider Sale
• Negative Sentiment: Additional planned sales by Credo’s COO involving 100,000 shares, along with a previously reported CEO sale worth about $2.5 million, could weigh on sentiment by signaling that executives are taking profits. These transactions do not necessarily indicate deteriorating business conditions, but they add selling pressure around a richly valued, volatile stock. Credo COO Planned Sale

Institutional Investors Weigh In On Credo Technology Group

Several hedge funds have recently made changes to their positions in CRDO. GoalVest Advisory LLC raised its stake 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 acquired a new stake in shares of Credo Technology Group in the third quarter worth $33,000. QRG Capital Management Inc. grew its holdings in shares of Credo Technology Group by 20.8% during the second quarter. QRG Capital Management Inc. now owns 6,527 shares of the company’s stock valued at $1,774,000 after buying an additional 1,125 shares in the last quarter. Envestnet Portfolio Solutions Inc. purchased a new position in shares of Credo Technology Group during the second quarter valued at $548,000. Finally, Envestnet Asset Management Inc. raised its position in Credo Technology Group by 14.6% during the second quarter. Envestnet Asset Management Inc. now owns 174,376 shares of the company’s stock valued at $47,421,000 after buying an additional 22,181 shares during the period. Hedge funds and other 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.