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

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price gapped down prior to trading 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.

Analyst Ratings Changes

Several brokerages have recently commented on CRDO. Wall Street Zen cut Credo Technology Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. JPMorgan Chase & Co. cut their price target 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. Stifel Nicolaus cut their price target on Credo Technology Group from $350.00 to $310.00 and set a “buy” rating for the company in a report on Monday, October 5th. Bank of America reduced their price target on shares of Credo Technology Group from $340.00 to $275.00 and set a “buy” rating on the stock in a research report on Wednesday, September 2nd. Finally, 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 report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $262.67.

Credo Technology Group Stock Down 5.9%

The business’s fifty 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 price-to-earnings 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 posted its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.03. The firm had revenue of $479.00 million during the quarter, compared to analysts’ expectations of $473.30 million. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. Credo Technology Group’s revenue was up 114.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.52 EPS. Research analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Insider Transactions at Credo Technology Group

In other news, CEO William Brennan sold 16,672 shares of the business’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $151.88, for a total transaction of $2,532,143.36. Following the completion of the sale, the chief executive officer owned 1,600,830 shares in the company, valued at $243,134,060.40. The trade was a 1.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James Laufman sold 5,000 shares of the business’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $205.00, for a total value of $1,025,000.00. Following the sale, the insider owned 164,223 shares of the company’s stock, valued at approximately $33,665,715. The trade was a 2.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 428,376 shares of company stock valued at $87,012,128 over the last quarter. Corporate insiders own 9.06% of the company’s stock.

Institutional Trading of Credo Technology Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its stake in shares of Credo Technology Group by 13.7% in the 2nd quarter. Bank of America Corp DE now owns 2,182,764 shares of the company’s stock valued at $593,603,000 after purchasing an additional 262,479 shares during the last quarter. Corient Private Wealth LLC raised its stake in shares of Credo Technology Group by 239,024.5% during the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company’s stock worth $517,835,000 after buying an additional 3,597,318 shares during the last quarter. Atreides Management LP raised its stake in shares of Credo Technology Group by 3.5% during the second quarter. Atreides Management LP now owns 1,129,285 shares of the company’s stock worth $307,109,000 after buying an additional 38,052 shares during the last quarter. Barclays PLC raised its stake in shares of Credo Technology Group by 33.8% during the fourth quarter. Barclays PLC now owns 1,448,004 shares of the company’s stock worth $208,353,000 after buying an additional 365,923 shares during the last quarter. Finally, The Manufacturers Life Insurance Company lifted its holdings in Credo Technology Group by 192.1% in the first quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company’s stock valued at $98,290,000 after buying an additional 688,596 shares during the period. 80.46% of the stock is owned by institutional investors.

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.