Credo Technology Group Holding Ltd (NASDAQ:CRDO) shares experienced a drop of 2.9% on Friday, June 3, 2023, following news of insider selling activity. The stock traded at a low of $16.05 before closing at $16.06. A total volume of 636,696 shares changed hands during trading – a significant decline of 71% from the average session volume of 2,158,729 shares.
CFO Daniel W. Fleming was reportedly responsible for the most recent bout of insider selling. He sold 3,700 shares of Credo Technology Group stock on May 30th at an average price of $15.06 per share, resulting in a total transaction value of $55,722. Following this transaction, Fleming now directly holds approximately 585,252 shares in the company valued at $8,813,895.12.
This transaction was disclosed in a document filed with the Securities and Exchange Commission (SEC), which can be accessed through their website. In related news earlier this year, CEO William Joseph Brennan also reportedly sold over twenty-four thousand shares in March.
Several analysts have contributed reports on Credo Technology Group’s recent performance and state that Cowen reduced its target price for the company from $18.00 to $11.00 due to less than favorable results presented in its recent earnings call back in March.
Credo Technology Group Holding Ltd provides several high-speed connectivity solutions across various applications such as optical and electrical Ethernet systems within the US and around the world using integrated circuits and active electrical cables based on its serializer/deserializer chiplets and digital signal processor technologies respectively.
This year’s first quarter results demonstrated earnings per share (EPS) of $0.02 for Credo Technology Group against analyst consensus estimates of just one cent per share—an achievement previously reported by Wall Street Journal’s Bloomberg Newsroom last April.
Despite recent insider selling activities and bearish outlooks by some analysts, the consensus rating among experts for Credo Technology Group currently stands at a “Moderate Buy” with an average price target of $14.11.
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Institutional Investors Make Significant Investments in Credo Technology Group
The financial world is abuzz with news of significant shifts in institutional investors’ positions in CRDO, the stock of Credo Technology Group. Hedge funds and large investment groups such as BlackRock Inc., Capital Research Global Investors, Vanguard Group Inc., Schonfeld Strategic Advisors LLC, and State Street Corp have made noteworthy investments in CRDO that could signal a new wave of interest in the company.
In the third quarter of this year, BlackRock Inc. grew its position in Credo Technology Group by an impressive 255.4%. The company now owns over twelve million shares of CRDO, which are currently valued at $140,255,000. This growth is largely due to BlackRock’s decision to purchase an additional nine million shares during the last quarter.
Capital Research Global Investors purchased their first position in Credo Technology Group during the first quarter of this year. The investment group acquired shares valued at approximately $125,306,000, indicating a strong belief in the future profitability of Credo Technology Group.
Vanguard Group Inc. increased their previous holdings substantially by acquiring over five million additional shares of CRDO during the third quarter. The current holdings now amount to nearly seven million shares worth $76,349,000.
Schonfeld Strategic Advisors LLC also entered into a new position in Credo Technology Group during the first quarter by purchasing shares worth approximately $29,508,000. This investment further signifies the potential for long-term profitability that investors see in this technology-focused firm.
Finally, State Street Corp increased their holdings by a staggering 712.7% during the third quarter alone adding over 2 million more CRDO stocks to their portfolio worth $32.5M.
Institutional investors own almost half (40%)of all outstanding shares of Credo Technology Group’s stocks signalling confidence in its market potential and overall sustainability be it through government or just civil demand for better tech gadgets and tools.
These investors’ purchases indicate that they likely have a belief in the long-term health of Credo Technology Group. Despite high levels of stock market volatility, these institutional investors have still put significant amounts of money into CRDO, indicating strong faith in the company’s future prospects.
Only time will tell whether this trust in Credo Technology Group pays off for these investors. However, for now, it seems that this technology firm has struck a chord with prominent institutions looking to make long-term strategic investments.
