Credo Technology Group (NASDAQ:CRDO) Trading Down 7.9% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) fell 7.9% during mid-day trading on Monday . The company traded as low as $149.14 and last traded at $150.09. 10,565,266 shares traded hands during trading, an increase of 42% from the average daily volume of 7,424,136 shares. The stock had previously closed at $162.95.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Susquehanna increased their target price on shares of Credo Technology Group from $235.00 to $250.00 and gave the stock a “positive” rating in a report on Tuesday, July 21st. Barclays boosted their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a report on Monday, July 20th. Zacks Research downgraded Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. Rosenblatt Securities boosted their target price on Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a research note on Wednesday, September 2nd. Finally, Jefferies Financial Group raised their price target on Credo Technology Group from $225.00 to $270.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Credo Technology Group has a consensus rating of “Moderate Buy” and an average price target of $267.39.

Credo Technology Group Stock Up 0.2%

The company has a market capitalization of $28.27 billion, a P/E ratio of 53.52, a price-to-earnings-growth ratio of 0.60 and a beta of 3.22. The business has a fifty day moving average price of $217.44 and a 200 day moving average price of $191.27.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.03. The company had revenue of $479.00 million during 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%.Credo Technology Group’s revenue for the quarter was up 114.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.52 earnings per share. As a group, equities analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Yat Lam sold 55,441 shares of the firm’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the transaction, the chief operating officer directly owned 2,529,169 shares of the company’s stock, valued at $538,763,580.38. This trade represents a 2.15% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of Credo Technology Group stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $205.54, for a total transaction of $5,652,350.00. Following the completion of the sale, the chief technology officer owned 5,799,870 shares in the company, valued at $1,192,105,279.80. This trade represents a 0.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 285,574 shares of company stock valued at $65,043,841 in the last quarter. 9.06% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Credo Technology Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CRDO. California State Teachers Retirement System raised its stake in Credo Technology Group by 2.2% in the 1st quarter. California State Teachers Retirement System now owns 240,886 shares of the company’s stock worth $22,612,000 after purchasing an additional 5,113 shares in the last quarter. TimesSquare Capital Management LLC grew its position in shares of Credo Technology Group by 5.5% during the 4th quarter. TimesSquare Capital Management LLC now owns 264,181 shares of the company’s stock worth $38,013,000 after purchasing an additional 13,881 shares in the last quarter. Corsair Capital Management L.P. acquired a new position in shares of Credo Technology Group during the 1st quarter worth approximately $469,000. Lazard Asset Management LLC increased its holdings in shares of Credo Technology Group by 55.6% during the first quarter. Lazard Asset Management LLC now owns 67,051 shares of the company’s stock worth $6,294,000 after purchasing an additional 23,949 shares during the period. Finally, Quantinno Capital Management LP increased its holdings in shares of Credo Technology Group by 68.4% during the first quarter. Quantinno Capital Management LP now owns 34,124 shares of the company’s stock worth $3,203,000 after purchasing an additional 13,859 shares during the period. 80.46% of the stock is currently owned by institutional investors and hedge funds.

Credo Technology Group Company Profile

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.