Shares of Credo Technology Group Holding Ltd. (NASDAQ: CRDO) experienced a decline of 1.4% on December 22, 2023, following the sale of shares by an insider. The stock traded as low as $143.12 before closing at $147.81. During midday trading, a total of 2,843,217 shares changed hands, representing a significant drop of 49% from the average session volume of 5,558,359 shares. This downturn is noteworthy, as the stock had previously closed at $149.94.
The decline coincided with a transaction involving Chi Fung Cheng, the company’s Chief Technology Officer. On December 22, Cheng sold 55,000 shares at an average price of $150.77, amounting to a total value of $8,292,350.00. Following this sale, Cheng retained 6,503,961 shares, valued at approximately $980,602,199.97, marking a 0.84% decrease in ownership. Earlier, on December 15, Cheng had also sold 55,000 shares at an average price of $143.94, generating $7,916,700.00. After this earlier transaction, his remaining shares were valued around $944,096,846.34.
Analyst Ratings and Market Performance
Credo Technology Group has garnered attention from several research analysts. In a report dated October 22, 2023, Susquehanna raised its target price from $165.00 to $175.00, assigning a “positive” rating. Following this, New Street Research set an ambitious price objective of $240.00 on December 2, 2023. That same day, TD Cowen increased its target from $190.00 to $240.00 and reiterated a “buy” rating. Coverage initiated by William Blair on September 18, 2023, also rated the stock as “outperform.”
Currently, analysts have issued two “Strong Buy” ratings, thirteen “Buy” ratings, and one “Hold” rating for the company’s stock. Data from MarketBeat.com indicates a consensus rating of “Buy” with an average price target of $206.85.
Despite the recent dip, Credo Technology Group’s market capitalization stands at $27.13 billion, with a price-to-earnings ratio of 131.73 and a beta of 2.63. The company’s 50-day moving average is $157.10, and the 200-day moving average is $131.47. In its latest earnings report on December 1, 2023, the company reported earnings of $0.67 per share, exceeding the consensus estimate of $0.49 by $0.18. Revenue for the quarter reached $268.03 million, surpassing expectations of $234.99 million.
Institutional Investor Activity
Recent changes in institutional holdings further reflect the dynamics surrounding Credo Technology Group. Notably, Northwestern Mutual Wealth Management Co. acquired a new stake in the first quarter valued at approximately $25,000. Other institutions, such as Atlantic Union Bankshares Corp. and First Horizon Corp, similarly added new positions, each valued around $25,000 to $26,000. Smartleaf Asset Management LLC notably increased its stake by 133.6% in the third quarter, now owning 257 shares valued at $38,000 after purchasing an additional 147 shares.
Institutional investors currently hold 80.46% of the company’s stock, reflecting strong confidence in its long-term growth prospects.
Credo Technology Group, based in the United States, is a fabless semiconductor company specializing in high-speed connectivity solutions for cloud, enterprise, and telecommunications infrastructure. The firm focuses on developing semiconductors and associated intellectual property to ensure reliable, low-latency data transmission within data centers and network equipment. Its product portfolio primarily features high-speed analog and mixed-signal devices designed to maintain signal integrity over copper and optical connections.
As the landscape continues to evolve, market observers will closely monitor both insider trading activity and analyst ratings for insights into future performance.
