Credo Technology Group (NASDAQ:CRDO) Trading Down 5.5% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares dropped 5.5% on Tuesday . The company traded as low as $183.40 and last traded at $198.57. Approximately 6,214,708 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 7,076,727 shares. The stock had previously closed at $210.22.

Analysts Set New Price Targets

CRDO has been the subject of a number of recent research reports. Mizuho lowered their price objective on shares of Credo Technology Group from $225.00 to $200.00 and set an “outperform” rating for the company in a report on Tuesday, March 3rd. Rothschild & Co Redburn initiated coverage on shares of Credo Technology Group in a report on Friday, May 1st. They issued a “buy” rating and a $206.00 price objective for the company. Zacks Research lowered shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a report on Monday, April 13th. The Goldman Sachs Group increased their price target on shares of Credo Technology Group from $150.00 to $170.00 and gave the company a “buy” rating in a research report on Thursday, April 16th. Finally, Craig Hallum reissued a “buy” rating and set a $200.00 price target on shares of Credo Technology Group in a research report on Tuesday, March 3rd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $207.71.

Credo Technology Group Trading Down 5.5%

The company’s 50 day moving average is $133.42 and its 200-day moving average is $141.40. The company has a market capitalization of $36.63 billion, a P/E ratio of 110.32 and a beta of 3.17.

Credo Technology Group (NASDAQ:CRDO) last issued its quarterly earnings results on Monday, March 2nd. The company reported $1.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.78 by $0.29. The company had revenue of $407.01 million during the quarter, compared to analyst estimates of $385.94 million. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. Credo Technology Group’s quarterly revenue was up 201.5% compared to the same quarter last year. During the same period last year, the business earned $0.25 EPS. Analysts predict that Credo Technology Group Holding Ltd. will post 2.36 EPS for the current fiscal year.

Insider Activity

In related news, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $178.99, for a total transaction of $4,922,225.00. Following the sale, the chief technology officer directly owned 6,024,870 shares of the company’s stock, valued at approximately $1,078,391,481.30. This represents a 0.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 7,580 shares of the stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $152.63, for a total transaction of $1,156,935.40. Following the sale, the chief financial officer directly owned 433,678 shares in the company, valued at $66,192,273.14. This trade represents a 1.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 386,608 shares of company stock valued at $50,371,351. Company insiders own 11.84% of the company’s stock.

Institutional Trading of Credo Technology Group

A number of institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in shares of Credo Technology Group by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 16,585,229 shares of the company’s stock valued at $2,386,449,000 after acquiring an additional 59,849 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Credo Technology Group by 18.3% in the third quarter. JPMorgan Chase & Co. now owns 7,699,456 shares of the company’s stock worth $1,121,118,000 after buying an additional 1,190,522 shares during the last quarter. State Street Corp boosted its holdings in shares of Credo Technology Group by 23.4% in the fourth quarter. State Street Corp now owns 4,486,320 shares of the company’s stock worth $645,537,000 after buying an additional 849,654 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Credo Technology Group by 5.0% in the fourth quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company’s stock worth $555,117,000 after buying an additional 184,676 shares during the last quarter. Finally, Corient Private Wealth LLC boosted its holdings in shares of Credo Technology Group by 239,024.5% in the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company’s stock worth $517,835,000 after buying an additional 3,597,318 shares during the last quarter. Hedge funds and other 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.