Credo Technology Group (NASDAQ:CRDO) Shares Down 4.7% – Should You Sell?

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

Wall Street Analysts Forecast Growth

CRDO has been the subject of a number of research analyst reports. Stifel Nicolaus boosted their price objective on Credo Technology Group from $250.00 to $350.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. JPMorgan Chase & Co. lifted their price target on Credo Technology Group from $230.00 to $250.00 and gave the stock an “overweight” rating in a report on Tuesday, June 2nd. The Goldman Sachs Group restated a “buy” rating and issued a $250.00 price target on shares of Credo Technology Group in a research note on Tuesday, June 2nd. Needham & Company LLC upped their price objective on Credo Technology Group from $220.00 to $275.00 and gave the company a “buy” rating in a report on Monday, June 1st. Finally, Rosenblatt Securities increased their price objective on Credo Technology Group from $175.00 to $215.00 and gave the stock a “neutral” rating in a research report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, Credo Technology Group has a consensus rating of “Buy” and a consensus price target of $263.11.

Credo Technology Group Stock Performance

The stock’s 50-day simple moving average is $219.87 and its 200-day simple moving average is $159.87. The stock has a market cap of $45.11 billion, a price-to-earnings ratio of 97.54, a price-to-earnings-growth ratio of 1.18 and a beta of 3.20.

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

Insider Buying and Selling at Credo Technology Group

In other news, CFO Daniel W. Fleming sold 40,000 shares of the company’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $249.48, for a total transaction of $9,979,200.00. Following the completion of the sale, the chief financial officer directly owned 501,873 shares in the company, valued at approximately $125,207,276.04. This represents a 7.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed 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, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction on Friday, April 10th. The stock was sold at an average price of $118.25, for a total value of $3,251,875.00. Following the sale, the chief technology officer directly owned 6,134,870 shares in the company, valued at approximately $725,448,377.50. This trade represents a 0.45% 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 405,095 shares of company stock valued at $81,206,774 in the last three months. Corporate insiders own 11.84% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Versant Capital Management Inc boosted its position in shares of Credo Technology Group by 8.0% during the 2nd quarter. Versant Capital Management Inc now owns 755 shares of the company’s stock worth $205,000 after acquiring an additional 56 shares in the last quarter. KERR FINANCIAL PLANNING Corp bought a new stake in Credo Technology Group during the second quarter worth $156,000. VectorGlobal IAG Inc. acquired a new stake in shares of Credo Technology Group in the 1st quarter valued at $1,055,000. Pacer Advisors Inc. boosted its holdings in shares of Credo Technology Group by 32.6% in the 1st quarter. Pacer Advisors Inc. now owns 22,736 shares of the company’s stock valued at $2,134,000 after purchasing an additional 5,585 shares in the last quarter. Finally, PVG Asset Management Corp bought a new position in shares of Credo Technology Group in the 1st quarter valued at $84,000. 80.46% of the stock is currently owned by institutional investors and hedge funds.

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.