Credo Technology Group (NASDAQ:CRDO) Trading Down 2.3% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price fell 2.3% during mid-day trading on Friday . The stock traded as low as $253.75 and last traded at $259.90. 3,362,157 shares traded hands during trading, a decline of 55% from the average daily volume of 7,407,430 shares. The stock had previously closed at $265.99.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on CRDO shares. Stifel Nicolaus boosted their price target on shares of Credo Technology Group from $250.00 to $350.00 and gave the company a “buy” rating in a research report on Monday, June 22nd. Roth Capital increased their price target on Credo Technology Group from $200.00 to $300.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Wall Street Zen lowered Credo Technology Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Mizuho boosted their target price on shares of Credo Technology Group from $260.00 to $290.00 and gave the stock an “outperform” rating in a research report on Tuesday, June 2nd. Finally, JPMorgan Chase & Co. boosted their price target on Credo Technology Group from $230.00 to $250.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $266.17.

Credo Technology Group Trading Down 2.3%

The company has a market capitalization of $48.47 billion, a price-to-earnings ratio of 104.80, a PEG ratio of 1.19 and a beta of 3.23. The company’s 50 day simple moving average is $241.19 and its 200-day simple moving average is $178.53.

Credo Technology Group (NASDAQ:CRDO) last issued its quarterly earnings results on Monday, June 1st. The company reported $1.16 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.14. The company had revenue of $437.00 million during the quarter, compared to the consensus estimate of $431.80 million. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.Credo Technology Group’s revenue was up 157.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.20 EPS. Sell-side analysts anticipate that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current year.

Insider Activity at Credo Technology Group

In other news, CEO William Joseph Brennan sold 54,984 shares of the firm’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $218.57, for a total value of $12,017,852.88. Following the transaction, the chief executive officer directly owned 367,327 shares in the company, valued at $80,286,662.39. This trade represents a 13.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Yat Tung Lam sold 55,441 shares of the firm’s stock in a transaction that occurred on Friday, July 31st. The shares were 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 owned 2,529,169 shares in the company, valued at $538,763,580.38. The trade was a 2.15% 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 three months, insiders sold 435,076 shares of company stock worth $101,043,506. 11.84% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CRDO. Reflection Asset Management purchased a new stake in shares of Credo Technology Group during the fourth quarter valued at approximately $25,000. Acumen Wealth Advisors LLC acquired a new stake in shares of Credo Technology Group in the 4th quarter valued at about $25,000. AlphaCentric Advisors LLC bought a new position in Credo Technology Group during the 1st quarter worth approximately $33,000. Van ECK Associates Corp bought a new position in Credo Technology Group during the fourth quarter worth $37,000. Finally, Western Wealth Management LLC bought a new position in shares of Credo Technology Group in the 1st quarter worth about $38,000. 80.46% of the stock is owned by hedge funds and other institutional investors.

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.