Credo Technology Group (NASDAQ:CRDO) Stock Falls 6.5% After Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price dropped 6.5% during mid-day trading on Monday after an insider sold shares in the company. The company traded as low as $198.34 and last traded at $197.2040. Approximately 1,214,500 shares changed hands during trading, a decline of 84% from the average session volume of 7,473,825 shares. The stock had previously closed at $210.97.

Specifically, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $193.12, for a total transaction of $5,310,800.00. Following the completion of the sale, the chief technology officer owned 5,689,897 shares of the company’s stock, valued at approximately $1,098,832,908.64. This trade represents a 0.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James Laufman sold 5,000 shares of Credo Technology Group stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $185.00, for a total transaction of $925,000.00. Following the completion of the transaction, the insider owned 169,223 shares of the company’s stock, valued at $31,306,255. This trade represents a 2.87% decrease in their position. The disclosure for this sale is available in the SEC filing.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Zacks Research cut Credo Technology Group from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. Jefferies Financial Group increased their target price on Credo Technology Group from $225.00 to $270.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Susquehanna raised their target price on Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Needham & Company LLC lifted their price target on Credo Technology Group from $220.00 to $275.00 and gave the company a “buy” rating in a report on Monday, June 1st. Finally, TD Cowen increased their price objective 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. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $264.89.

Credo Technology Group Stock Down 7.7%

The company has a market cap of $36.61 billion, a P/E ratio of 69.32, a P/E/G ratio of 0.84 and a beta of 3.22. The business has a 50-day moving average price of $209.32 and a two-hundred day moving average price of $195.53.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.03. The business had revenue of $479.00 million for the quarter, compared to analysts’ expectations of $473.30 million. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%.The firm’s quarterly revenue was up 114.7% compared to the same quarter last year. During the same quarter last year, the business earned $0.52 earnings per share. As a group, sell-side analysts expect that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Institutional Investors Weigh In On Credo Technology Group

Several institutional investors have recently modified their holdings of CRDO. City Center Advisors LLC raised its holdings in shares of Credo Technology Group by 2.1% during the second quarter. City Center Advisors LLC now owns 2,595 shares of the company’s stock worth $706,000 after acquiring an additional 53 shares during the period. Versant Capital Management Inc increased its holdings in Credo Technology Group by 8.0% during the 2nd quarter. Versant Capital Management Inc now owns 755 shares of the company’s stock worth $205,000 after purchasing an additional 56 shares in the last quarter. QRG Capital Management Inc. raised its stake in shares of Credo Technology Group by 1.7% in the 1st quarter. QRG Capital Management Inc. now owns 5,402 shares of the company’s stock valued at $507,000 after purchasing an additional 91 shares during the period. Bank of Nova Scotia lifted its holdings in shares of Credo Technology Group by 1.6% in the first quarter. Bank of Nova Scotia now owns 6,026 shares of the company’s stock valued at $566,000 after purchasing an additional 92 shares in the last quarter. Finally, Orion Capital Management LLC acquired a new position in shares of Credo Technology Group during the second quarter worth about $27,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

About Credo Technology Group

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for the data infrastructure market. Its products are designed to help move data efficiently within and between networking, storage and computing systems, with applications in artificial intelligence, cloud computing, telecommunications and enterprise data centers.

The company’s portfolio includes serializer/deserializer (SerDes) integrated circuits, retimers, optical digital signal processors and active electrical cables.