Credo Technology Group (NASDAQ:CRDO) Shares Down 4.7% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price dropped 4.7% during mid-day trading on Wednesday . The company traded as low as $253.52 and last traded at $259.09. Approximately 7,914,183 shares traded hands during mid-day trading, an increase of 1% from the average session volume of 7,861,588 shares. The stock had previously closed at $271.95.

Analyst Ratings Changes

Several brokerages have issued reports on CRDO. Needham & Company LLC lifted their target price on shares of Credo Technology Group from $220.00 to $275.00 and gave the stock a “buy” rating in a report on Monday, June 1st. 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. TD Cowen boosted their price objective on shares of Credo Technology Group from $240.00 to $260.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Stifel Nicolaus upped their price objective on Credo Technology Group from $250.00 to $350.00 and gave the company a “buy” rating in a research report on Monday, June 22nd. Finally, Bank of America increased their target price on Credo Technology Group from $252.00 to $340.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, Credo Technology Group presently has an average rating of “Buy” and an average price target of $263.11.

Credo Technology Group Price Performance

The business’s 50 day moving average price is $217.01 and its 200 day moving average price is $158.44. The stock has a market capitalization of $48.32 billion, a P/E ratio of 104.47, a price-to-earnings-growth ratio of 1.12 and a beta of 3.22.

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

Insider Transactions at Credo Technology Group

In other Credo Technology Group news, CFO Daniel W. Fleming sold 40,000 shares of the firm’s stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $249.48, for a total value of $9,979,200.00. Following the transaction, the chief financial officer directly owned 501,873 shares of the company’s stock, valued at approximately $125,207,276.04. This trade represents a 7.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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. Also, CEO William Joseph Brennan sold 54,984 shares of the business’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $218.57, for a total value of $12,017,852.88. Following the sale, the chief executive officer owned 367,327 shares of the company’s stock, valued at approximately $80,286,662.39. This represents a 13.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 389,384 shares of company stock worth $74,982,168 in the last ninety days. Insiders own 11.84% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

A number of institutional investors and hedge funds have recently made changes to their positions in CRDO. Crewe Advisors LLC increased its holdings in Credo Technology Group by 163.1% during the fourth quarter. Crewe Advisors LLC now owns 171 shares of the company’s stock valued at $25,000 after buying an additional 106 shares during the last quarter. Reflection Asset Management purchased a new stake in shares of Credo Technology Group in the 4th quarter worth $25,000. Acumen Wealth Advisors LLC purchased a new stake in shares of Credo Technology Group in the 4th quarter worth $25,000. Flagship Harbor Advisors LLC bought a new position in Credo Technology Group in the 4th quarter worth $32,000. Finally, AlphaCentric Advisors LLC bought a new position in Credo Technology Group in the 1st quarter worth $33,000. 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.