Credo Technology Group (NASDAQ:CRDO) Stock Price Target Cut by Stifel Nicolaus

Key Points

• Stifel Nicolaus lowered Credo Technology Group’s price target from $350 to $310 while maintaining a “buy” rating, implying approximately 41.8% upside from the reported $218.64 share price.
• Analyst sentiment remains favorable, with 15 analysts rating the stock Strong Buy or Buy and three assigning Hold ratings; the consensus price target is $262.67.
• Credo reported strong quarterly results, including $1.20 in EPS and $479 million in revenue, with revenue rising 114.7% year over year and exceeding analyst estimates.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) had its target price decreased by equities researchers at Stifel Nicolaus from $350.00 to $310.00 in a research note issued on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Stifel Nicolaus' price objective would suggest a potential upside of 41.79% from the stock's current price.

A number of other research analysts have also recently commented on CRDO. Evercore set a $292.00 price target on shares of Credo Technology Group in a report on Wednesday, September 2nd. Barclays lifted their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an "overweight" rating in a report on Monday, July 20th. Mizuho lowered their price objective on shares of Credo Technology Group from $290.00 to $245.00 and set an "outperform" rating for the company in a research report on Monday, September 21st. Susquehanna upped their target price on shares of Credo Technology Group from $235.00 to $250.00 and gave the stock a "positive" rating in a research note on Tuesday, July 21st. Finally, Bank of America dropped their target price on shares of Credo Technology Group from $340.00 to $275.00 and set a "buy" rating on the stock in a research note on Wednesday, September 2nd. One investment 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. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $262.67.

Credo Technology Group Stock Performance

Shares of CRDO stock opened at $218.64 on Monday. The stock has a 50 day moving average price of $207.21 and a 200 day moving average price of $198.59. Credo Technology Group has a 52-week low of $86.49 and a 52-week high of $308.67. The firm has a market capitalization of $41.09 billion, a P/E ratio of 77.81, a P/E/G ratio of 0.87 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, beating the consensus estimate 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 the consensus estimate of $473.30 million. During the same quarter in the prior year, the company posted $0.52 EPS. Credo Technology Group's quarterly revenue was up 114.7% on a year-over-year basis. As a group, sell-side analysts forecast that Credo Technology Group will post 5.02 EPS for the current year.

Insiders Place Their Bets

In related news, CTO Chi Cheng sold 27,500 shares of Credo Technology Group stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $205.54, for a total value of $5,652,350.00. Following the completion of the sale, the chief technology officer directly owned 5,799,870 shares in the company, valued at $1,192,105,279.80. The trade was a 0.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 55,441 shares of the company's stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the sale, the chief operating officer directly owned 2,529,169 shares of the company's stock, valued at approximately $538,763,580.38. This trade represents a 2.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 434,746 shares of company stock worth $89,424,859 in the last three months. Corporate insiders own 9.06% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Reflection Asset Management purchased a new position in shares of Credo Technology Group in the 4th quarter valued at $25,000. Orion Capital Management LLC bought a new stake in Credo Technology Group during the second quarter valued at about $27,000. AlphaCentric Advisors LLC bought a new stake in Credo Technology Group during the first quarter valued at about $33,000. Burkett Financial Services LLC purchased a new position in Credo Technology Group in the third quarter valued at about $33,000. Finally, Western Wealth Management LLC purchased a new position in Credo Technology Group in the first quarter valued at about $38,000. Hedge funds and other institutional investors own 80.46% of the company's stock.

Credo Technology Group Company Profile

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.

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