Credo Technology Group Holding Ltd. (NASDAQ:CRDO) Given Consensus Recommendation of "Buy" by Brokerages

Key Points

• Credo Technology Group Holding Ltd. has received a consensus rating of "Buy" from thirteen research firms, with an average 12-month price target of $91.27.
• Recent quarterly earnings showed a significant revenue increase of 179.6% year-over-year, with an EPS of $0.35 exceeding expectations.
• Insider activity includes recent stock sales by director Lip Bu Tan and CTO Chi Fung Cheng, indicating a substantial reduction in their ownership stakes.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) have received a consensus rating of "Buy" from the thirteen research firms that are covering the company, Marketbeat Ratings reports. Twelve research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $91.2727.

Several equities analysts have commented on the stock. TD Cowen boosted their price target on shares of Credo Technology Group from $85.00 to $95.00 and gave the stock a "buy" rating in a research note on Wednesday, June 18th. Barclays set a $85.00 price target on shares of Credo Technology Group and gave the company an "overweight" rating in a research report on Tuesday, June 3rd. Cowen reissued a "buy" rating on shares of Credo Technology Group in a research report on Tuesday, June 3rd. Noble Financial raised shares of Credo Technology Group to a "strong-buy" rating in a report on Tuesday, June 3rd. Finally, Mizuho upped their target price on shares of Credo Technology Group from $112.00 to $135.00 and gave the company an "outperform" rating in a report on Thursday, August 14th.

Credo Technology Group Stock Up 4.1%

NASDAQ:CRDO opened at $120.10 on Wednesday. The stock's fifty day moving average is $103.17 and its two-hundred day moving average is $70.80. Credo Technology Group has a 52 week low of $24.08 and a 52 week high of $128.56. The stock has a market capitalization of $20.61 billion, a price-to-earnings ratio of 444.81, a price-to-earnings-growth ratio of 2.07 and a beta of 2.59.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings results on Monday, June 2nd. The company reported $0.35 EPS for the quarter, topping analysts' consensus estimates of $0.27 by $0.08. The company had revenue of $170.00 million for the quarter, compared to analysts' expectations of $159.59 million. Credo Technology Group had a return on equity of 8.77% and a net margin of 11.95%.The firm's revenue was up 179.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.07 earnings per share. Credo Technology Group has set its Q1 2026 guidance at EPS. On average, sell-side analysts expect that Credo Technology Group will post 0.13 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Lip Bu Tan sold 171,473 shares of the company's stock in a transaction on Monday, June 16th. The stock was sold at an average price of $77.90, for a total transaction of $13,357,746.70. Following the transaction, the director owned 613,725 shares of the company's stock, valued at $47,809,177.50. This represents a 21.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO Chi Fung Cheng sold 59,641 shares of the company's stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $74.96, for a total value of $4,470,689.36. Following the completion of the sale, the chief technology officer directly owned 7,603,961 shares in the company, valued at $569,992,916.56. This trade represents a 0.78% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,274,583 shares of company stock valued at $113,118,257 over the last quarter. Company insiders own 16.04% of the company's stock.

Institutional Trading of Credo Technology Group

Large investors have recently bought and sold shares of the company. Mariner LLC acquired a new position in Credo Technology Group in the 4th quarter valued at about $314,000. NewEdge Advisors LLC acquired a new position in shares of Credo Technology Group in the 4th quarter valued at about $208,000. Hsbc Holdings PLC lifted its stake in shares of Credo Technology Group by 160.4% in the 4th quarter. Hsbc Holdings PLC now owns 40,049 shares of the company's stock valued at $2,756,000 after purchasing an additional 24,667 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in Credo Technology Group by 441.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 975,935 shares of the company's stock worth $65,594,000 after acquiring an additional 795,751 shares in the last quarter. Finally, Aquatic Capital Management LLC acquired a new position in Credo Technology Group during the 4th quarter worth approximately $1,260,000. Institutional investors and hedge funds own 80.46% of the company's stock.

Credo Technology Group Company Profile

Credo Technology Group Holding Ltd provides various high-speed connectivity Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Taiwan, Mainland China, Hong Kong, and internationally. Its products include HiWire active electrical cables, optical digital signal processors, low-power line card PHY, serializer/deserializer (SerDes) chiplets, and SerDes IP, as well as integrated circuits, active electrical cables.

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