Credo Technology Group (NASDAQ:CRDO) Given New $245.00 Price Target at Mizuho

Key Points

• Mizuho cut Credo Technology Group’s price target from $290 to $245 while maintaining an “outperform” rating, implying 39.29% upside from the prior close.
• Despite mixed analyst revisions, Credo retains a “Moderate Buy” consensus rating, with an average price target of $264.89 based on one Strong Buy, fourteen Buy, and three Hold ratings.
• Credo reported quarterly EPS of $1.20 and revenue of $479 million, beating estimates and marking 114.7% year-over-year revenue growth; however, insiders sold about $67.6 million of stock over the last quarter.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) had its price target reduced by research analysts at Mizuho from $290.00 to $245.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Mizuho's price objective would suggest a potential upside of 39.29% from the stock's previous close.

CRDO has been the subject of several other reports. Weiss Ratings raised Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday. Rosenblatt Securities raised their price objective on shares of Credo Technology Group from $215.00 to $235.00 and gave the company a "neutral" rating in a research note on Wednesday, September 2nd. Bank of America dropped their price objective on shares of Credo Technology Group from $340.00 to $275.00 and set a "buy" rating for the company in a report on Wednesday, September 2nd. Barclays upped their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a research note on Monday, July 20th. Finally, Wall Street Zen cut shares of Credo Technology Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $264.89.

Credo Technology Group Price Performance

Shares of Credo Technology Group stock opened at $175.89 on Monday. The business's fifty day simple moving average is $211.91 and its 200-day simple moving average is $192.43. The firm has a market cap of $33.06 billion, a PE ratio of 62.59, a price-to-earnings-growth ratio of 0.70 and a beta of 3.22. Credo Technology Group has a 52 week low of $86.49 and a 52 week high of $308.67.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its earnings results 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 return on equity of 28.77% and a net margin of 33.83%.The company had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. During the same quarter in the previous year, the company earned $0.52 earnings per share. The firm's quarterly revenue was up 114.7% compared to the same quarter last year. As a group, equities analysts expect that Credo Technology Group will post 5.02 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Yat Lam sold 50,000 shares of the firm's stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $213.33, for a total transaction of $10,666,500.00. Following the sale, the chief operating officer owned 300,000 shares of the company's stock, valued at approximately $63,999,000. This trade represents a 14.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 3,790 shares of the business's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $170.00, for a total value of $644,300.00. Following the sale, the chief technology officer owned 136,568 shares of the company's stock, valued at approximately $23,216,560. The trade was a 2.70% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 302,246 shares of company stock valued at $67,575,984 over the last quarter. Corporate insiders own 9.06% of the company's stock.

Institutional Trading of Credo Technology Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. City Center Advisors LLC lifted its position in Credo Technology Group by 2.1% during the 2nd quarter. City Center Advisors LLC now owns 2,595 shares of the company's stock worth $706,000 after acquiring an additional 53 shares in the last quarter. Versant Capital Management Inc grew its position in Credo Technology Group by 8.0% in the second quarter. Versant Capital Management Inc now owns 755 shares of the company's stock valued at $205,000 after acquiring an additional 56 shares in the last quarter. QRG Capital Management Inc. raised its stake in shares of Credo Technology Group by 1.7% during the first quarter. QRG Capital Management Inc. now owns 5,402 shares of the company's stock valued at $507,000 after purchasing an additional 91 shares during the period. Bank of Nova Scotia raised its stake in shares of Credo Technology Group by 1.6% during the first quarter. Bank of Nova Scotia now owns 6,026 shares of the company's stock valued at $566,000 after purchasing an additional 92 shares during the period. Finally, Orion Capital Management LLC purchased a new stake in shares of Credo Technology Group during the second quarter valued at approximately $27,000. Institutional investors and hedge funds own 80.46% of the company's stock.

About Credo Technology Group

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for the data infrastructure market. Its products are designed to help move data efficiently within and between networking, storage and computing systems, with applications in artificial intelligence, cloud computing, telecommunications and enterprise data centers.

The company's portfolio includes serializer/deserializer (SerDes) integrated circuits, retimers, optical digital signal processors and active electrical cables.

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