Credo Technology Group (NASDAQ:CRDO) Stock Price Down 13% – Here’s What Happened

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price dropped 13% during trading on Tuesday . The company traded as low as $240.00 and last traded at $245.97. Approximately 7,681,250 shares changed hands during mid-day trading, an increase of 4% from the average session volume of 7,392,999 shares. The stock had previously closed at $282.82.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on CRDO shares. Roth Capital boosted their target price on Credo Technology Group from $200.00 to $300.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Rothschild & Co Redburn began coverage on shares of Credo Technology Group in a report on Friday, May 1st. They issued a “buy” rating and a $206.00 price target on the stock. Jefferies Financial Group lifted their price target on shares of Credo Technology Group from $225.00 to $270.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Barclays increased their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an “overweight” rating in a research report on Monday, July 20th. Finally, Stifel Nicolaus raised their target price on shares of Credo Technology Group from $250.00 to $350.00 and gave the company a “buy” rating in a research note on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Credo Technology Group presently has an average rating of “Moderate Buy” and a consensus target price of $268.39.

Credo Technology Group Stock Performance

The stock has a fifty day simple moving average of $242.40 and a two-hundred day simple moving average of $179.97. The stock has a market cap of $45.87 billion, a PE ratio of 99.18, a PEG ratio of 1.19 and a beta of 3.23.

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

Insider Activity

In other Credo Technology Group news, CTO Chi Fung Cheng sold 27,473 shares of the firm’s stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $209.53, for a total transaction of $5,756,417.69. Following the completion of the sale, the chief technology officer owned 5,772,397 shares in the company, valued at $1,209,490,343.41. This trade represents a 0.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 7,580 shares of Credo Technology Group stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $245.88, for a total value of $1,863,770.40. Following the sale, the chief financial officer owned 504,708 shares in the company, valued at $124,097,603.04. This represents a 1.48% 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 435,076 shares of company stock worth $101,043,506 over the last ninety days. Corporate insiders own 11.84% of the company’s stock.

Institutional Trading of Credo Technology Group

A number of hedge funds have recently made changes to their positions in CRDO. Reflection Asset Management acquired a new stake in Credo Technology Group in the fourth quarter valued at $25,000. Acumen Wealth Advisors LLC bought a new position in shares of Credo Technology Group during the fourth quarter worth about $25,000. Orion Capital Management LLC acquired a new position in Credo Technology Group in the second quarter worth about $27,000. AlphaCentric Advisors LLC acquired a new stake in Credo Technology Group during the first quarter valued at approximately $33,000. Finally, Van ECK Associates Corp acquired a new stake in Credo Technology Group during the fourth quarter valued at approximately $37,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

About Credo Technology Group

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.