Credo Technology Group (NASDAQ:CRDO) Shares Down 7.3% – Should You Sell?

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO) fell 7.3% on Monday. The stock traded as low as $138.88 and last traded at $140.02. 8,124,520 shares traded hands during mid-day trading, an increase of 6% from the average daily volume of 7,632,131 shares. The stock had previously closed at $150.99.

Wall Street Analyst Weigh In

CRDO has been the topic of several research analyst reports. Weiss Ratings lowered Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, October 6th. Rosenblatt Securities reiterated a “neutral” rating and issued a $235.00 target price on shares of Credo Technology Group in a report on Thursday, October 15th. Barclays boosted their price target on Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a research note on Monday, July 20th. Bank of America cut their price target on Credo Technology Group from $340.00 to $275.00 and set a “buy” rating on the stock in a report on Wednesday, September 2nd. Finally, Wall Street Zen downgraded shares of Credo Technology Group from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $262.67.

Credo Technology Group Price Performance

The company has a fifty day moving average price of $183.35 and a 200 day moving average price of $180.64. The stock has a market cap of $25.66 billion, a P/E ratio of 50.98, a P/E/G ratio of 0.60 and a beta of 3.29.

Credo Technology Group (NASDAQ:CRDO) last issued its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.17 by $0.03. The company had revenue of $479.00 million for the quarter, compared to analysts’ expectations 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% compared to the same quarter last year. During the same period last year, the business earned $0.52 EPS. As a group, sell-side analysts expect that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Yat Lam sold 50,000 shares of the company’s stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $206.30, for a total value of $10,315,000.00. Following the sale, the chief operating officer owned 2,479,169 shares in the company, valued at $511,452,564.70. This represents a 1.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Brennan sold 16,672 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $151.88, for a total transaction of $2,532,143.36. Following the completion of the transaction, the chief executive officer directly owned 1,600,830 shares in the company, valued at approximately $243,134,060.40. The trade was a 1.03% 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. Insiders sold 352,538 shares of company stock worth $67,200,077 over the last three months. 9.06% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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

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.