Credo Technology Group (NASDAQ:CRDO) Shares Down 4.5% – Should You Sell?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price fell 4.5% on Wednesday . The company traded as low as $229.18 and last traded at $234.82. Approximately 4,869,889 shares traded hands during mid-day trading, a decline of 34% from the average daily volume of 7,387,093 shares. The stock had previously closed at $245.97.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on CRDO. Evercore assumed coverage on shares of Credo Technology Group in a report on Monday, June 22nd. They set an “outperform” rating and a $325.00 price objective for the company. Weiss Ratings upgraded shares of Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, May 26th. Needham & Company LLC increased their target price on shares of Credo Technology Group from $220.00 to $275.00 and gave the company a “buy” rating in a research report on Monday, June 1st. JPMorgan Chase & Co. raised their price target on shares of Credo Technology Group from $230.00 to $250.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 2nd. Finally, Zacks Research cut shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $268.39.

Credo Technology Group Stock Down 0.4%

The stock has a market cap of $42.99 billion, a P/E ratio of 92.96, a price-to-earnings-growth ratio of 1.07 and a beta of 3.23. The business’s 50-day simple moving average is $241.90 and its two-hundred day simple moving average is $182.27.

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

Insiders Place Their Bets

In other news, CFO Daniel W. Fleming sold 7,580 shares of the firm’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $245.88, for a total value of $1,863,770.40. Following the completion of the transaction, the chief financial officer directly owned 504,708 shares of the company’s stock, valued at $124,097,603.04. This trade represents a 1.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Tung Lam sold 55,441 shares of Credo Technology Group stock in a transaction on Friday, July 31st. The shares were sold at an average price of $213.02, for a total value of $11,810,041.82. Following the completion of the transaction, the chief operating officer owned 2,529,169 shares of the company’s stock, valued at approximately $538,763,580.38. This trade represents a 2.15% 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. Insiders have sold a total of 435,076 shares of company stock worth $101,043,506 over the last 90 days. Corporate insiders own 11.84% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds have recently bought and sold shares of the company. Orion Capital Management LLC purchased a new position in shares of Credo Technology Group during the 2nd quarter valued at $27,000. Reflection Asset Management bought a new stake in Credo Technology Group during the fourth quarter valued at $25,000. Acumen Wealth Advisors LLC purchased a new position in Credo Technology Group during the fourth quarter worth about $25,000. Van ECK Associates Corp purchased a new position in Credo Technology Group during the fourth quarter worth about $37,000. Finally, Quarry LP increased its stake in Credo Technology Group by 642.5% in the 3rd quarter. Quarry LP now owns 297 shares of the company’s stock worth $43,000 after acquiring an additional 257 shares during the last quarter. Hedge funds and other institutional investors own 80.46% of the company’s stock.

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.