Credo Technology Group (NASDAQ:CRDO) Stock: Insider Yat Tung Lam Sells 50,000 Shares

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) COO Yat Lam sold 50,000 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $205.22, for a total transaction of $10,261,000.00. Following the completion of the sale, the chief operating officer directly owned 2,254,169 shares of the company’s stock, valued at $462,600,562.18. This trade represents a 2.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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.

Yat Tung Lam also recently made the following trade(s):

• On Friday, September 25th, Yat Lam sold 50,000 shares of Credo Technology Group stock. The shares were sold at an average price of $206.30, for a total transaction of $10,315,000.00.
• On Friday, July 31st, Yat Lam sold 50,000 shares of Credo Technology Group stock. The shares were sold at an average price of $213.33, for a total transaction of $10,666,500.00.
• On Friday, July 31st, Yat Lam sold 55,441 shares of Credo Technology Group stock. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82.

Credo Technology Group Price Performance

CRDO traded up $8.47 during trading on Friday, reaching $218.64. 10,555,948 shares of the stock traded hands, compared to its average volume of 7,534,299. The stock’s 50-day simple moving average is $207.10 and its two-hundred day simple moving average is $197.87. Credo Technology Group Holding Ltd. has a fifty-two week low of $86.49 and a fifty-two week high of $308.67. The stock has a market cap of $41.09 billion, a price-to-earnings ratio of 77.81, a price-to-earnings-growth ratio of 0.78 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO) last announced its quarterly 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 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 firm’s revenue was up 114.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.52 EPS. Research analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages have issued reports on CRDO. Susquehanna upped their target price on Credo Technology Group from $235.00 to $250.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. Mizuho dropped their price objective on Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating on the stock in a research note on Monday, September 21st. Zacks Research downgraded shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. Evercore set a $292.00 target price on shares of Credo Technology Group in a research report on Wednesday, September 2nd. Finally, Bank of America cut their target price on shares of Credo Technology Group from $340.00 to $275.00 and set a “buy” rating for the company in a research note on Wednesday, September 2nd. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $264.89.

Institutional Trading of Credo Technology Group

Hedge funds have recently modified their holdings of the company. Orion Capital Management LLC acquired a new position in shares of Credo Technology Group in the second quarter valued at $27,000. Burkett Financial Services LLC bought a new stake in Credo Technology Group in the 3rd quarter valued at $33,000. Reflection Asset Management bought a new stake in Credo Technology Group in the 4th quarter valued at $25,000. AlphaCentric Advisors LLC acquired a new position in shares of Credo Technology Group in the 1st quarter valued at $33,000. Finally, MCF Advisors LLC raised its stake in shares of Credo Technology Group by 309.9% in the 4th quarter. MCF Advisors LLC now owns 373 shares of the company’s stock valued at $54,000 after buying an additional 282 shares in the last quarter. Institutional investors own 80.46% of the company’s stock.

Credo Technology Group News Summary

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Credo’s high-speed connectivity products are positioned to benefit as AI infrastructure spending expands beyond processors to the networking and cabling required to connect large data-center clusters. Recent coverage highlights the company as a potential beneficiary of this next phase of AI investment. AI Spending Is Entering Its Next Phase
• Positive Sentiment: Credo’s latest quarterly results continue to support the bullish growth narrative: revenue rose 114.7% year over year to $479 million, while earnings of $1.20 per share exceeded the $1.17 consensus estimate. Momentum-focused coverage notes that the stock has gained since the report and is attracting continued investor interest. Credo Strong Momentum Stock
• Positive Sentiment: Sell-side sentiment remains favorable, with Credo carrying a “Moderate Buy” consensus rating and an average analyst price target of $264.89. This provides a positive backdrop for the shares, although the stock’s elevated valuation means continued execution is important. Credo Moderate Buy Rating
• Neutral Sentiment: CTO Chi Cheng sold 27,500 shares for approximately $5.3 million under a pre-arranged Rule 10b5-1 trading plan. The sale reduced his ownership by only 0.48%, limiting its significance because it was planned and he retains a substantial stake. CTO Insider Sale
• Negative Sentiment: Additional planned sales by Credo’s COO involving 100,000 shares, along with a previously reported CEO sale worth about $2.5 million, could weigh on sentiment by signaling that executives are taking profits. These transactions do not necessarily indicate deteriorating business conditions, but they add selling pressure around a richly valued, volatile stock. Credo COO Planned Sale

About Credo Technology Group

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for data infrastructure. Its technologies are designed to improve the performance, power efficiency and reliability of connections used in cloud computing, artificial intelligence, high-performance computing, telecommunications and enterprise networks.

The company’s product portfolio includes serializer/deserializer (SerDes) intellectual property, integrated circuits, active electrical cables and optical connectivity products.