Credo Technology Group (NASDAQ:CRDO) Sets New 1-Year High - Here's What Happened

Key Points

• Credo Technology Group (NASDAQ:CRDO) hit a new 52-week high, trading as high as $246.13 and last changing hands near $250.05 after a strong volume day.
• Wall Street analysts have turned increasingly bullish, with multiple firms raising price targets and the current consensus sitting at a Moderate Buy with a $248.41 target.
• The company’s latest earnings beat expectations, with EPS of $1.16 versus $1.02 expected and revenue rising 157% year over year to $437 million.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price reached a new 52-week high on Tuesday . The stock traded as high as $246.13 and last traded at $250.0490, with a volume of 1750773 shares trading hands. The stock had previously closed at $222.27.

Analysts Set New Price Targets

Several research firms have weighed in on CRDO. Bank of America boosted their price target on Credo Technology Group from $210.00 to $252.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Weiss Ratings raised Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, May 26th. Needham & Company LLC boosted their price target on Credo Technology Group from $220.00 to $275.00 and gave the stock a "buy" rating in a research report on Monday, June 1st. Rosenblatt Securities boosted their target price on Credo Technology Group from $175.00 to $215.00 and gave the stock a "neutral" rating in a report on Tuesday, June 2nd. Finally, Stifel Nicolaus set a $250.00 target price on Credo Technology Group in a report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $248.41.

Credo Technology Group Stock Performance

The firm has a market capitalization of $39.48 billion, a price-to-earnings ratio of 85.91, a price-to-earnings-growth ratio of 1.34 and a beta of 3.22. The business has a fifty day moving average of $172.17 and a two-hundred day moving average of $147.79.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings results on Monday, June 1st. The company reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.14. The business had revenue of $437.00 million during the quarter, compared to the consensus estimate of $431.80 million. Credo Technology Group had a return on equity of 36.99% and a net margin of 35.37%.The firm's quarterly revenue was up 157.0% on a year-over-year basis. During the same period in the previous year, the company posted $0.20 EPS. As a group, sell-side analysts predict that Credo Technology Group Holding Ltd. will post 3.93 EPS for the current fiscal year.

Insider Transactions at Credo Technology Group

In related news, CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $178.99, for a total value of $4,922,225.00. Following the completion of the sale, the chief technology officer directly owned 6,024,870 shares in the company, valued at $1,078,391,481.30. The trade was a 0.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 7,580 shares of the business's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $152.63, for a total value of $1,156,935.40. Following the completion of the sale, the chief financial officer owned 433,678 shares of the company's stock, valued at $66,192,273.14. This trade represents a 1.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 386,608 shares of company stock valued at $50,371,351. Company insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

A number of institutional investors have recently modified their holdings of CRDO. Mirae Asset Global Investments Co. Ltd. lifted its position in shares of Credo Technology Group by 9.4% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 271,067 shares of the company's stock worth $39,004,000 after buying an additional 23,332 shares during the last quarter. M&T Bank Corp increased its holdings in Credo Technology Group by 428.8% in the 4th quarter. M&T Bank Corp now owns 13,427 shares of the company's stock worth $1,932,000 after purchasing an additional 10,888 shares in the last quarter. FengHe Fund Management Pte. Ltd. increased its holdings in Credo Technology Group by 5.7% in the 4th quarter. FengHe Fund Management Pte. Ltd. now owns 162,269 shares of the company's stock worth $23,349,000 after purchasing an additional 8,769 shares in the last quarter. TD Asset Management Inc acquired a new position in Credo Technology Group in the 3rd quarter worth about $17,454,000. Finally, Second Line Capital LLC acquired a new position in Credo Technology Group in the 3rd quarter worth about $4,283,000. 80.46% of the stock is currently owned by institutional investors.

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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