Credo Technology Group (NASDAQ:CRDO) Shares Down 13% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) was down 13% on Tuesday . The stock traded as low as $240.00 and last traded at $245.97. 7,681,250 shares changed hands during trading, an increase of 4% from the average daily volume of 7,392,999 shares. The stock had previously closed at $282.82.

Analyst Ratings Changes

A number of analysts have commented on the company. Zacks Research cut Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. Weiss Ratings raised Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th. TD Cowen boosted their price objective on Credo Technology Group from $260.00 to $300.00 and gave the company a “buy” rating in a research note on Tuesday. Rothschild & Co Redburn assumed coverage on shares of Credo Technology Group in a report on Friday, May 1st. They issued a “buy” rating and a $206.00 target price for the company. Finally, Barclays increased their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an “overweight” rating in a report on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $268.39.

Credo Technology Group Trading Down 4.5%

The firm has a market cap of $43.79 billion, a PE ratio of 94.69, a price-to-earnings-growth ratio of 1.12 and a beta of 3.23. The stock has a 50 day simple moving average of $242.57 and a 200-day simple moving average of $181.53.

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

Insider Activity at Credo Technology Group

In other Credo Technology Group news, COO Yat Tung Lam sold 55,441 shares of the company’s stock in a transaction that occurred on Friday, July 31st. The stock was 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 directly owned 2,529,169 shares in the company, valued at $538,763,580.38. This represents a 2.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 7,580 shares of the stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $245.88, for a total transaction of $1,863,770.40. Following the sale, the chief financial officer directly owned 504,708 shares of the company’s stock, valued at approximately $124,097,603.04. This trade represents a 1.48% 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. In the last 90 days, insiders have sold 435,076 shares of company stock valued at $101,043,506. 11.84% of the stock is owned by company insiders.

Institutional Trading of Credo Technology Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. FengHe Fund Management Pte. Ltd. increased its stake in Credo Technology Group by 5.7% in the 4th quarter. FengHe Fund Management Pte. Ltd. now owns 162,269 shares of the company’s stock worth $23,349,000 after acquiring an additional 8,769 shares during the last quarter. M&T Bank Corp raised its holdings in shares of Credo Technology Group by 428.8% during the 4th quarter. M&T Bank Corp now owns 13,427 shares of the company’s stock worth $1,932,000 after acquiring an additional 10,888 shares in the last quarter. California State Teachers Retirement System boosted its position in shares of Credo Technology Group by 2.2% during the 1st quarter. California State Teachers Retirement System now owns 240,886 shares of the company’s stock valued at $22,612,000 after acquiring an additional 5,113 shares during the last quarter. Teacher Retirement System of Texas boosted its position in shares of Credo Technology Group by 486.2% during the 4th quarter. Teacher Retirement System of Texas now owns 239,721 shares of the company’s stock valued at $34,493,000 after acquiring an additional 198,826 shares during the last quarter. Finally, TimesSquare Capital Management LLC grew its holdings in shares of Credo Technology Group by 5.5% in the fourth quarter. TimesSquare Capital Management LLC now owns 264,181 shares of the company’s stock valued at $38,013,000 after purchasing an additional 13,881 shares in the last quarter. 80.46% of the stock is currently owned by institutional investors.

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.