Credo Technology Group Holding Ltd. (NASDAQ: CRDO) experienced a decline of 1.6% in its share price during midday trading on September 16, 2023. This decrease followed notable insider selling transactions by key executives. The stock traded as low as $167.32 before recovering slightly to close at $169.56. Trading volume surged to approximately 12,616,963 shares, a significant increase of 139% compared to the average daily volume of 5,283,771 shares.
CEO William Joseph Brennan sold 50,000 shares at an average price of $164.11, totaling $8,205,500. Following this sale, he retained 1,992,502 shares, valued at around $326,989,503.22, marking a 2.45% reduction in his holdings. In a separate transaction on the same day, Brennan sold an additional 18,016 shares, also at an average price of $164.11, amounting to $2,956,605.76, reducing his total direct ownership to 369,173 shares valued at approximately $60,584,981.03.
Additionally, Chief Technology Officer Chi Fung Cheng sold 55,000 shares on September 15, 2023, at an average price of $163.98, resulting in a total value of $9,018,900. Cheng’s remaining holdings now stand at 6,998,961 shares, valued at about $1,147,689,624.78, which reflects a 0.78% decrease in his stake.
Analyst Ratings and Market Performance
Several equity research analysts have recently provided insights on Credo Technology Group’s stock performance. On September 4, 2023, Stifel Nicolaus set a price target of $155.00. Conversely, Barclays raised its target from $85.00 to $165.00, assigning an “overweight” rating. Similarly, Susquehanna increased its target to $165.00 with a “positive” rating, while Cowen reiterated a “buy” rating.
Currently, a total of two analysts have rated the stock as a Strong Buy, with thirteen issuing a Buy rating. According to MarketBeat.com, the consensus rating for Credo Technology Group is “Buy,” with an average target price of $126.27.
As for the company’s financial performance, Credo Technology Group reported a revenue of $223.07 million for the most recent quarter, surpassing analyst estimates of $190.63 million. The company posted earnings per share (EPS) of $0.34, slightly below the consensus estimate of $0.36. Notably, the year-over-year revenue growth stands at 273.6%, while the net margin was reported at 20.85%.
Institutional Investor Activity
Recent trading activity among institutional investors has also impacted Credo Technology Group’s stock dynamics. Cetera Investment Advisers increased its holdings by 45.4% during the fourth quarter, now owning 11,956 shares valued at $804,000. Additionally, UBS Asset Management Americas LLC raised its stake by 24.6%, now holding 303,656 shares worth $20,409,000.
Other investors, such as PharVision Advisers LLC and GTS Securities LLC, acquired new stakes during the same period. Currently, institutional investors and hedge funds own 80.46% of Credo Technology Group’s stock, indicating strong institutional backing.
Credo Technology Group, based in the United States, specializes in high-speed connectivity solutions for optical and electrical Ethernet applications, serving various international markets, including Taiwan, Mainland China, and Hong Kong. Its product offerings include active electrical cables, optical digital signal processors, and integrated circuits, among others.
As the company continues to navigate the market, analyst insights and insider trading activities will remain critical for investors monitoring Credo Technology Group’s trajectory.