Credo Technology Group (NASDAQ:CRDO) Shares Down 5.4% After Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) was down 5.4% on Friday after an insider sold shares in the company. The company traded as low as $248.88 and last traded at $250.48. Approximately 1,551,283 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 7,458,781 shares. The stock had previously closed at $264.76.

Specifically, Director Fariba Danesh sold 1,100 shares of the company’s stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $236.34, for a total transaction of $259,974.00. Following the transaction, the director directly owned 7,017 shares of the company’s stock, valued at approximately $1,658,397.78. The trade was a 13.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Chi Fung Cheng sold 27,500 shares of the firm’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $259.53, for a total value of $7,137,075.00. Following the sale, the chief technology officer owned 5,992,370 shares of the company’s stock, valued at $1,555,199,786.10. The trade was a 0.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In related news, Director Sylvia Acevedo sold 2,208 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $211.00, for a total transaction of $465,888.00. Following the transaction, the director directly owned 16,337 shares of the company’s stock, valued at approximately $3,447,107. The trade was a 11.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Analyst Ratings Changes

CRDO has been the subject of a number of research reports. Craig Hallum reissued a “buy” rating and set a $200.00 target price on shares of Credo Technology Group in a research note on Tuesday, March 3rd. TD Cowen boosted their target price on Credo Technology Group from $240.00 to $260.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Rothschild & Co Redburn assumed coverage on Credo Technology Group in a research report on Friday, May 1st. They issued a “buy” rating and a $206.00 target price on the stock. Rosenblatt Securities raised their price target on Credo Technology Group from $175.00 to $215.00 and gave the stock a “neutral” rating in a research note on Tuesday, June 2nd. Finally, Bank of America boosted their price target on Credo Technology Group from $210.00 to $252.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $248.41.

Key Headlines Impacting Credo Technology Group

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Credo completed its acquisition of DustPhotonics, strengthening its optical connectivity and silicon photonics capabilities for AI and cloud networking demand. Credo Technology (CRDO) Completes Acquisition of DustPhotonics to Expand Optical Connectivity Portfolio
• Positive Sentiment: Multiple recent articles and analyst notes highlighted Credo as a top-ranked AI-related growth stock, reinforcing investor optimism around continued earnings momentum. 3 Top Ranked Stocks Investors Can Buy Right Now
• Positive Sentiment: Analysts have raised or reaffirmed higher price targets following Credo’s earnings beat and strong revenue growth, signaling confidence in the company’s outlook. Can Credo Technology Group (CRDO) Run Higher on Rising Earnings Estimates?
• Neutral Sentiment: Insider selling by Director Fariba Danesh and CTO Chi Fung Cheng may create some caution, but the CTO’s sale was tied to tax withholding on vested equity awards and does not appear to indicate a fundamental issue.
• Neutral Sentiment: Some coverage continues to flag customer concentration risk, though management is working to diversify revenue across more NeoCloud and broader customers. Credo’s Diversification Push: Can It Cut Customer Concentration Risk?

Credo Technology Group Stock Performance

The firm has a market capitalization of $46.40 billion, a price-to-earnings ratio of 100.44, a price-to-earnings-growth ratio of 1.25 and a beta of 3.22. The business’s 50 day moving average is $181.36 and its 200-day moving average is $150.09.

Credo Technology Group (NASDAQ:CRDO) last released its quarterly earnings results on Monday, June 1st. The company reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.02 by $0.14. The company had revenue of $437.00 million during the quarter, compared to analysts’ expectations of $431.80 million. Credo Technology Group had a net margin of 35.37% and a return on equity of 36.99%. The business’s quarterly revenue was up 157.0% compared to the same quarter last year. During the same period in the prior year, the company earned $0.20 earnings per share. Equities research analysts forecast that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current fiscal year.

Institutional Trading of Credo Technology Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CRDO. NewEdge Advisors LLC increased its position in Credo Technology Group by 24.1% in the 1st quarter. NewEdge Advisors LLC now owns 5,883 shares of the company’s stock worth $552,000 after buying an additional 1,141 shares during the period. Glenmede Trust Co. NA grew its stake in shares of Credo Technology Group by 2.0% in the first quarter. Glenmede Trust Co. NA now owns 5,706 shares of the company’s stock worth $536,000 after acquiring an additional 114 shares during the last quarter. Segall Bryant & Hamill LLC grew its stake in shares of Credo Technology Group by 12.7% in the first quarter. Segall Bryant & Hamill LLC now owns 111,621 shares of the company’s stock worth $10,478,000 after acquiring an additional 12,616 shares during the last quarter. Verus Capital Partners LLC bought a new position in Credo Technology Group during the first quarter worth $506,000. Finally, Western Wealth Management LLC acquired a new position in Credo Technology Group during the 1st quarter valued at $38,000. Institutional investors and hedge funds 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.