Credo Technology Group (NASDAQ:CRDO) Stock Price Down 9.2% on Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price dropped 9.2% on Wednesday following insider selling activity. The company traded as low as $134.15 and last traded at $139.16. Approximately 9,393,893 shares were traded during mid-day trading, an increase of 44% from the average daily volume of 6,501,283 shares. The stock had previously closed at $153.22.

Specifically, CTO Chi Fung Cheng sold 30,000 shares of the stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $155.47, for a total value of $4,664,100.00. Following the sale, the chief technology officer directly owned 6,357,370 shares in the company, valued at $988,380,313.90. This represents a 0.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Sylvia Acevedo sold 2,200 shares of Credo Technology Group stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $159.18, for a total value of $350,196.00. Following the sale, the director directly owned 18,545 shares of the company’s stock, valued at approximately $2,951,993.10. This trade represents a 10.60% decrease in their position. The disclosure for this sale is available in the SEC filing.

Analyst Ratings Changes

Several brokerages have weighed in on CRDO. KGI Securities raised shares of Credo Technology Group from a “hold” rating to an “outperform” rating and set a $230.00 price target for the company in a research report on Tuesday, December 2nd. Wall Street Zen raised shares of Credo Technology Group from a “hold” rating to a “buy” rating in a research report on Sunday, September 28th. JPMorgan Chase & Co. initiated coverage on shares of Credo Technology Group in a report on Friday, October 17th. They set an “overweight” rating and a $165.00 target price for the company. TD Cowen lifted their price target on shares of Credo Technology Group from $190.00 to $240.00 and gave the company a “buy” rating in a report on Tuesday, December 2nd. Finally, Zacks Research upgraded shares of Credo Technology Group from a “hold” rating to a “strong-buy” rating in a report on Thursday, December 4th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, Credo Technology Group presently has an average rating of “Buy” and an average price target of $216.54.

Credo Technology Group Stock Down 9.2%

The business’s 50 day moving average is $152.39 and its 200 day moving average is $140.24. The company has a market cap of $25.14 billion, a P/E ratio of 122.07 and a beta of 2.66.

Credo Technology Group (NASDAQ:CRDO) last announced its quarterly earnings results on Monday, December 1st. The company reported $0.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.49 by $0.18. The business had revenue of $268.03 million for the quarter, compared to the consensus estimate of $234.99 million. Credo Technology Group had a return on equity of 25.28% and a net margin of 26.63%.The business’s revenue was up 272.1% compared to the same quarter last year. During the same period last year, the business posted $0.07 EPS. As a group, equities research analysts forecast that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of CRDO. Vanguard Group Inc. boosted its holdings in shares of Credo Technology Group by 0.9% in the 3rd quarter. Vanguard Group Inc. now owns 16,525,380 shares of the company’s stock valued at $2,406,261,000 after acquiring an additional 150,012 shares during the last quarter. JPMorgan Chase & Co. grew its stake in Credo Technology Group by 18.3% in the 3rd quarter. JPMorgan Chase & Co. now owns 7,699,456 shares of the company’s stock valued at $1,121,118,000 after acquiring an additional 1,190,522 shares during the period. Geode Capital Management LLC raised its position in Credo Technology Group by 4.7% during the second quarter. Geode Capital Management LLC now owns 3,607,922 shares of the company’s stock worth $334,740,000 after acquiring an additional 163,305 shares during the period. Alliancebernstein L.P. lifted its holdings in Credo Technology Group by 66.0% during the second quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company’s stock valued at $283,778,000 after purchasing an additional 1,218,504 shares in the last quarter. Finally, Bank of America Corp DE grew its position in shares of Credo Technology Group by 161.5% in the third quarter. Bank of America Corp DE now owns 2,278,073 shares of the company’s stock valued at $331,710,000 after purchasing an additional 1,406,752 shares during the period. Institutional investors own 80.46% of the company’s stock.

About Credo Technology Group

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.