Credo Technology Group (NASDAQ:CRDO) Shares Down 9.5% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price dropped 9.5% during trading on Tuesday . The company traded as low as $266.85 and last traded at $273.7650. 2,107,809 shares changed hands during mid-day trading, a decline of 72% from the average daily volume of 7,503,747 shares. The stock had previously closed at $302.52.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Stifel raised its price target on Credo Technology Group from $250 to $350 and kept a buy rating, signaling confidence in more upside for the stock. Stifel price target raise via Benzinga
• Positive Sentiment: Bank of America lifted its target from $252 to $340 and reiterated a buy rating, adding to the bullish analyst momentum around CRDO. Bank of America price target raise via Benzinga
• Positive Sentiment: Evercore initiated coverage with a strong-buy rating and a $325 target, saying the market may be underestimating Credo’s opportunity in AI networking infrastructure and optical interconnects. Evercore initiation via The Fly
• Positive Sentiment: The stock was also added to Zacks’ Rank #1 (Strong Buy) growth list, which can attract more growth-oriented investors. Zacks growth stock list

Wall Street Analyst Weigh In

CRDO has been the topic of a number of recent research reports. Stifel Nicolaus raised their price target on shares of Credo Technology Group from $250.00 to $350.00 and gave the stock a “buy” rating in a research report on Monday. JPMorgan Chase & Co. lifted their target price on Credo Technology Group from $230.00 to $250.00 and gave the company an “overweight” rating in a research note on Tuesday, June 2nd. The Goldman Sachs Group reaffirmed a “buy” rating and set a $250.00 target price on shares of Credo Technology Group in a report on Tuesday, June 2nd. Evercore started coverage on Credo Technology Group in a research note on Monday. They set an “outperform” rating and a $325.00 price objective for the company. Finally, Susquehanna increased their target price on Credo Technology Group from $200.00 to $235.00 and gave the stock a “positive” rating in a research report on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Credo Technology Group currently has a consensus rating of “Buy” and a consensus price target of $263.11.

Credo Technology Group Trading Down 10.2%

The company has a market cap of $50.64 billion, a price-to-earnings ratio of 109.51, a price-to-earnings-growth ratio of 1.43 and a beta of 3.22. The stock has a 50-day simple moving average of $203.74 and a 200-day simple moving average of $154.84.

Credo Technology Group (NASDAQ:CRDO) last issued its quarterly earnings results on Monday, June 1st. The company reported $1.16 EPS for the quarter, beating analysts’ consensus estimates of $1.02 by $0.14. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The company had revenue of $437.00 million for the quarter, compared to analyst estimates of $431.80 million. During the same period last year, the company earned $0.20 earnings per share. The company’s quarterly revenue was up 157.0% compared to the same quarter last year. As a group, research analysts expect that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current fiscal year.

Insider Buying and Selling at Credo Technology Group

In other news, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $118.25, for a total value of $3,251,875.00. Following the completion of the transaction, the chief technology officer directly owned 6,134,870 shares in the company, valued at $725,448,377.50. This trade represents a 0.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 40,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $249.48, for a total transaction of $9,979,200.00. Following the transaction, the chief financial officer owned 501,873 shares in the company, valued at $125,207,276.04. This represents a 7.38% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 389,384 shares of company stock valued at $70,041,518. Company insiders own 11.84% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Mirae Asset Global Investments Co. Ltd. increased its position in Credo Technology Group by 9.4% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 271,067 shares of the company’s stock worth $39,004,000 after acquiring an additional 23,332 shares during the period. M&T Bank Corp boosted its holdings in Credo Technology Group by 428.8% in the 4th quarter. M&T Bank Corp now owns 13,427 shares of the company’s stock valued at $1,932,000 after purchasing an additional 10,888 shares during the period. FengHe Fund Management Pte. Ltd. grew its position in Credo Technology Group by 5.7% in the 4th quarter. FengHe Fund Management Pte. Ltd. now owns 162,269 shares of the company’s stock worth $23,349,000 after purchasing an additional 8,769 shares during the last quarter. TD Asset Management Inc acquired a new stake in Credo Technology Group in the 3rd quarter worth $17,454,000. Finally, Second Line Capital LLC bought a new position in shares of Credo Technology Group during the 3rd quarter worth about $4,283,000. 80.46% of the stock is owned by institutional investors.

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.