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

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares gapped down before the market opened on Tuesday. The stock had previously closed at $200.84, but opened at $191.11. Credo Technology Group shares last traded at $189.0550, with a volume of 1,467,222 shares traded.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on CRDO. Susquehanna raised their price target 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. Evercore set a $292.00 price objective on Credo Technology Group in a research note on Wednesday, September 2nd. JPMorgan Chase & Co. dropped their price objective on Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating for the company in a report on Wednesday, September 2nd. Rosenblatt Securities increased their target price on Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a research note on Wednesday, September 2nd. Finally, Wall Street Zen lowered Credo Technology Group from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $262.67.

Credo Technology Group Trading Down 5.9%

The firm’s 50 day moving average is $208.78 and its two-hundred day moving average is $203.24. The firm has a market cap of $35.54 billion, a P/E ratio of 67.16, a price-to-earnings-growth ratio of 0.86 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO) last issued its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.17 by $0.03. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The firm had revenue of $479.00 million during the quarter, compared to analysts’ expectations of $473.30 million. During the same quarter in the previous year, the company earned $0.52 earnings per share. The business’s revenue for the quarter was up 114.7% on a year-over-year basis. Analysts predict that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, COO Yat Lam sold 55,441 shares of Credo Technology Group stock in a transaction on Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the transaction, the chief operating officer directly owned 2,529,169 shares of the company’s stock, valued at $538,763,580.38. This trade represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of the business’s stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $193.12, for a total transaction of $5,310,800.00. Following the completion of the transaction, the chief technology officer directly owned 5,689,897 shares of the company’s stock, valued at $1,098,832,908.64. This trade represents a 0.48% 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. Over the last three months, insiders have sold 428,376 shares of company stock worth $87,012,128. Insiders own 9.06% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CRDO. Orion Capital Management LLC bought a new stake in Credo Technology Group during the second quarter worth $27,000. Burkett Financial Services LLC acquired a new stake in Credo Technology Group in the third quarter valued at $33,000. Reflection Asset Management bought a new position in shares of Credo Technology Group in the 4th quarter valued at about $25,000. Elevation Wealth Partners LLC grew its position in shares of Credo Technology Group by 292.9% in the 3rd quarter. Elevation Wealth Partners LLC now owns 275 shares of the company’s stock valued at $54,000 after acquiring an additional 205 shares during the period. Finally, AlphaCentric Advisors LLC bought a new position in shares of Credo Technology Group in the 1st quarter valued at about $33,000. 80.46% of the stock is owned by institutional investors and hedge funds.

Credo Technology Group Company Profile

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.