Credo Technology Group (NASDAQ:CRDO) Shares Gap Down on Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price gapped down before the market opened on Friday after an insider sold shares in the company. The stock had previously closed at $162.77, but opened at $151.24. Credo Technology Group shares last traded at $147.7870, with a volume of 3,645,576 shares.

Specifically, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $172.62, for a total value of $4,747,050.00. Following the transaction, the chief technology officer owned 5,579,897 shares in the company, valued at approximately $963,201,820.14. This trade represents a 0.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Brennan sold 16,666 shares of the business’s stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $174.87, for a total value of $2,914,383.42. Following the completion of the transaction, the chief executive officer directly owned 1,584,164 shares of the company’s stock, valued at approximately $277,022,758.68. This trade represents a 1.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

Several brokerages recently weighed in on CRDO. Barclays upped their price objective on Credo Technology Group from $260.00 to $300.00 and gave the stock an “overweight” rating in a research report on Monday, July 20th. Stifel Nicolaus dropped their target price on shares of Credo Technology Group from $350.00 to $310.00 and set a “buy” rating for the company in a report on Monday, October 5th. Weiss Ratings downgraded shares of Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, October 6th. Susquehanna lifted their price target on shares of Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a report on Tuesday, July 21st. Finally, JPMorgan Chase & Co. lowered their target price on Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating for the company in a report on Wednesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $262.67.

Credo Technology Group Trading Down 8.6%

The company’s 50-day simple moving average is $197.79 and its 200 day simple moving average is $207.74. The stock has a market cap of $27.95 billion, a P/E ratio of 52.69, a PEG ratio of 0.73 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO) last released its 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 company had revenue of $479.00 million during the quarter, compared to analyst estimates 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 quarterly revenue was up 114.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.52 earnings per share. Research analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of CRDO. Bank of America Corp DE raised its stake in shares of Credo Technology Group by 13.7% in the second quarter. Bank of America Corp DE now owns 2,182,764 shares of the company’s stock valued at $593,603,000 after buying an additional 262,479 shares during the period. Atreides Management LP lifted its position in shares of Credo Technology Group by 3.5% during the 2nd quarter. Atreides Management LP now owns 1,129,285 shares of the company’s stock valued at $307,109,000 after buying an additional 38,052 shares during the last quarter. The Manufacturers Life Insurance Company grew its stake in shares of Credo Technology Group by 192.1% during the 1st quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company’s stock worth $98,290,000 after acquiring an additional 688,596 shares during the period. H&H International Investment LLC grew its stake in shares of Credo Technology Group by 431.6% during the 1st quarter. H&H International Investment LLC now owns 751,200 shares of the company’s stock worth $70,515,000 after acquiring an additional 609,900 shares during the period. Finally, Dimensional Fund Advisors LP grew its stake in shares of Credo Technology Group by 0.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 703,122 shares of the company’s stock worth $65,949,000 after acquiring an additional 3,501 shares during the period. 80.46% of the stock is owned by institutional investors.

About Credo Technology Group

Credo Technology Group Holding Ltd. is a fabless semiconductor and connectivity solutions company that develops high-speed data-infrastructure technologies. Its products are designed to help data centers and communications networks move large volumes of information with lower power consumption and improved signal integrity.

The company’s portfolio includes serializer/deserializer (SerDes) intellectual property, application-specific integrated circuits, active electrical cables, optical digital signal processors and related connectivity platforms.