Credo Technology Group (NASDAQ:CRDO) Sets New 12-Month High - Still a Buy?

Key Points

• Credo Technology Group's shares reached a new 12-month high at $175.85, with a recent trading price of $173.32, showing significant growth in stock performance.
• Analysts have shown growing confidence in the company, with Zacks Research upgrading its rating to "strong-buy" and multiple firms increasing their target prices substantially.
• The company reported a revenue increase of 273.6% year-over-year, totaling $223.07 million, despite slightly missing EPS expectations by $0.02.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $175.85 and last traded at $173.32, with a volume of 480472 shares. The stock had previously closed at $164.44.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Barclays raised their price target on shares of Credo Technology Group from $85.00 to $165.00 and gave the stock an "overweight" rating in a research report on Thursday, September 4th. Zacks Research raised shares of Credo Technology Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 8th. Roth Capital raised their price target on shares of Credo Technology Group from $95.00 to $160.00 and gave the company a "buy" rating in a research note on Thursday, September 4th. Susquehanna lifted their price objective on shares of Credo Technology Group from $115.00 to $165.00 and gave the company a "positive" rating in a research note on Thursday, September 4th. Finally, Cowen reaffirmed a "buy" rating on shares of Credo Technology Group in a report on Thursday, September 4th. Two investment analysts have rated the stock with a Strong Buy rating and thirteen have given a Buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $126.27.

Credo Technology Group Stock Performance

The stock has a 50-day simple moving average of $123.01 and a two-hundred day simple moving average of $80.87. The firm has a market cap of $29.33 billion, a PE ratio of 253.07 and a beta of 2.59.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Wednesday, September 3rd. The company reported $0.34 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.36 by ($0.02). The company had revenue of $223.07 million for the quarter, compared to the consensus estimate of $190.63 million. Credo Technology Group had a net margin of 20.85% and a return on equity of 19.02%. The company's revenue was up 273.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.04 earnings per share. Credo Technology Group has set its Q2 2026 guidance at EPS. As a group, sell-side analysts anticipate that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current fiscal year.

Insider Buying and Selling at Credo Technology Group

In related news, CTO Chi Fung Cheng sold 55,000 shares of the business's stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $105.80, for a total transaction of $5,819,000.00. Following the completion of the sale, the chief technology officer owned 7,163,961 shares in the company, valued at $757,947,073.80. The trade was a 0.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO William Joseph Brennan sold 150,000 shares of Credo Technology Group stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $106.87, for a total value of $16,030,500.00. Following the transaction, the chief executive officer directly owned 2,061,978 shares in the company, valued at approximately $220,363,588.86. This trade represents a 6.78% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 871,163 shares of company stock valued at $97,342,803. 11.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On Credo Technology Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Cetera Investment Advisers lifted its holdings in Credo Technology Group by 45.4% during the 4th quarter. Cetera Investment Advisers now owns 11,956 shares of the company's stock worth $804,000 after buying an additional 3,732 shares during the last quarter. State of Wyoming boosted its position in Credo Technology Group by 44.9% during the fourth quarter. State of Wyoming now owns 5,227 shares of the company's stock valued at $351,000 after purchasing an additional 1,620 shares during the last quarter. Tidal Investments LLC bought a new position in Credo Technology Group during the fourth quarter valued at about $2,694,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Credo Technology Group by 24.6% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 303,656 shares of the company's stock worth $20,409,000 after buying an additional 59,937 shares in the last quarter. Finally, PharVision Advisers LLC acquired a new stake in Credo Technology Group during the fourth quarter valued at approximately $214,000. 80.46% of the stock is currently owned by institutional investors and hedge funds.

About Credo Technology Group

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.