Credo Technology Group Holding Ltd. (NASDAQ:CRDO) Short Interest Update

Key Points

• Short interest in Credo Technology Group fell sharply in June, dropping 43.7% to 5.33 million shares by June 30. That represents about 3.2% of shares outstanding and a very low 0.5-day days-to-cover ratio.
• The company reported strong quarterly results, posting EPS of $1.16 versus the $1.02 consensus estimate and revenue of $437 million, up 157% year over year. Net margin and return on equity were also notably strong at 35.37% and 32.30%, respectively.
• Analysts remain broadly bullish, with multiple firms raising price targets and the stock carrying a consensus “Buy” rating and average target of $263.11. Insider selling was also reported, including sales by the CTO and CEO, though insiders still own 11.84% of the company.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) saw a significant decrease in short interest during the month of June. As of June 30th, there was short interest totaling 5,334,875 shares, a decrease of 43.7% from the June 15th total of 9,474,050 shares. Based on an average daily volume of 11,438,300 shares, the days-to-cover ratio is currently 0.5 days. Approximately 3.2% of the shares of the company are short sold.

Credo Technology Group Stock Performance

Shares of CRDO stock traded down $21.18 on Thursday, reaching $205.56. 2,908,523 shares of the company were exchanged, compared to its average volume of 7,723,602. Credo Technology Group has a 1 year low of $86.49 and a 1 year high of $308.67. The business has a 50-day moving average price of $231.43 and a 200 day moving average price of $166.44. The company has a market cap of $38.33 billion, a price-to-earnings ratio of 82.74, a P/E/G ratio of 1.08 and a beta of 3.20.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its quarterly earnings results on Monday, June 1st. The company reported $1.16 earnings per share for the quarter, beating analysts' consensus estimates of $1.02 by $0.14. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The firm had revenue of $437.00 million for the quarter, compared to analyst estimates of $431.80 million. During the same period last year, the company posted $0.20 EPS. Credo Technology Group's quarterly revenue was up 157.0% compared to the same quarter last year. As a group, equities analysts anticipate that Credo Technology Group will post 4.84 earnings per share for the current year.

Analysts Set New Price Targets

CRDO has been the subject of several analyst reports. Needham & Company LLC boosted their target price on shares of Credo Technology Group from $220.00 to $275.00 and gave the company a "buy" rating in a research note on Monday, June 1st. Rosenblatt Securities lifted their price objective on shares of Credo Technology Group from $175.00 to $215.00 and gave the company a "neutral" rating in a report on Tuesday, June 2nd. Weiss Ratings upgraded shares of Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, May 26th. JPMorgan Chase & Co. increased their target price on shares of Credo Technology Group from $230.00 to $250.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 2nd. Finally, Jefferies Financial Group lifted their price target on Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Credo Technology Group has an average rating of "Buy" and a consensus price target of $263.11.

Insider Buying and Selling at Credo Technology Group

In other news, CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $269.84, for a total value of $7,420,600.00. Following the completion of the transaction, the chief technology officer owned 5,909,870 shares of the company's stock, valued at $1,594,719,320.80. The trade was a 0.46% decrease in their position. The sale was disclosed in a 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, CEO William Joseph Brennan sold 54,984 shares of the company's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $218.57, for a total value of $12,017,852.88. Following the completion of the sale, the chief executive officer owned 367,327 shares in the company, valued at $80,286,662.39. The trade was a 13.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 329,662 shares of company stock worth $76,068,196. Insiders own 11.84% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Crewe Advisors LLC boosted its holdings in shares of Credo Technology Group by 163.1% during the 4th quarter. Crewe Advisors LLC now owns 171 shares of the company's stock worth $25,000 after purchasing an additional 106 shares during the last quarter. Reflection Asset Management acquired a new stake in shares of Credo Technology Group in the 4th quarter worth $25,000. Acumen Wealth Advisors LLC acquired a new position in shares of Credo Technology Group during the 4th quarter valued at about $25,000. Flagship Harbor Advisors LLC purchased a new stake in shares of Credo Technology Group in the fourth quarter valued at about $32,000. Finally, AlphaCentric Advisors LLC acquired a new stake in Credo Technology Group during the first quarter worth about $33,000. 80.46% of the stock is owned by institutional investors and hedge funds.

About Credo Technology Group

Credo Technology Group, Inc NASDAQ: CRDO is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo's product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.

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