Credo Technology Group (NASDAQ:CRDO) Stock Falls 9.5% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price traded down 9.5% during trading on Wednesday. The stock traded as low as $130.26 and last traded at $136.50. 10,658,555 shares traded hands during trading, an increase of 40% from the average daily volume of 7,634,610 shares. The stock had previously closed at $150.91.

Analyst Ratings Changes

A number of equities analysts have issued reports on CRDO shares. JPMorgan Chase & Co. decreased their price target on Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating for the company in a research note on Wednesday, September 2nd. Wall Street Zen lowered Credo Technology Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Susquehanna upped their price objective on Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a report on Tuesday, July 21st. Weiss Ratings cut Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, October 6th. Finally, Zacks Research lowered Credo Technology Group from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. One investment 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 data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $262.67.

Credo Technology Group Trading Down 9.6%

The business has a 50-day moving average price of $185.15 and a 200 day moving average price of $180.71. The company has a market cap of $25.63 billion, a price-to-earnings ratio of 48.53, a P/E/G ratio of 0.56 and a beta of 3.29.

Credo Technology Group (NASDAQ:CRDO) last released 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 business 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%. The company’s revenue was up 114.7% compared to the same quarter last year. During the same period last year, the company posted $0.52 EPS. On average, analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Insider Activity at Credo Technology Group

In related news, insider James Laufman sold 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $205.00, for a total transaction of $1,025,000.00. Following the transaction, the insider owned 164,223 shares of the company’s stock, valued at approximately $33,665,715. This trade represents a 2.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Daniel W. Fleming sold 7,580 shares of Credo Technology Group stock in a transaction that occurred on Thursday, October 8th. The shares were sold at an average price of $212.91, for a total transaction of $1,613,857.80. Following the completion of the sale, the chief financial officer owned 492,208 shares of the company’s stock, valued at $104,796,005.28. This trade represents a 1.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 352,538 shares of company stock worth $67,200,077. 9.06% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Credo Technology Group

A number of large investors have recently bought and sold shares of the business. Vestor Capital LLC lifted its position in shares of Credo Technology Group by 304.0% in the third quarter. Vestor Capital LLC now owns 6,788 shares of the company’s stock worth $1,322,000 after buying an additional 5,108 shares during the last quarter. Kestra Investment Management LLC bought a new stake in shares of Credo Technology Group during the 3rd quarter worth about $202,000. AlphaCore Capital LLC bought a new stake in shares of Credo Technology Group during the 3rd quarter worth about $318,000. Midwest Capital Advisors LLC increased its holdings in shares of Credo Technology Group by 166.3% during the 3rd quarter. Midwest Capital Advisors LLC now owns 831 shares of the company’s stock valued at $162,000 after acquiring an additional 519 shares during the last quarter. Finally, Syntax Research Inc. acquired a new position in shares of Credo Technology Group during the 3rd quarter valued at about $241,000. 80.46% of the stock is currently owned by institutional investors.

Credo Technology Group Company Profile

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.