Credo Technology Group (NASDAQ:CRDO) Sets New 12-Month High - Here's Why

Key Points

• Credo Technology Group reached a new 12-month high, trading at $106.23 before closing at $105.66, with a volume of 250,473 shares exchanged.
• Analysts have varying opinions on the stock, with a consensus buy rating and an average price target of $87.91, while some analysts have recently raised their target prices significantly.
• The company reported a 179.6% year-over-year increase in revenue, totaling $170 million, and an earnings per share of $0.35, surpassing analysts' estimates.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price hit a new 52-week high during trading on Monday . The stock traded as high as $106.23 and last traded at $105.66, with a volume of 250473 shares trading hands. The stock had previously closed at $101.22.

Analyst Ratings Changes

Several equities analysts have recently issued reports on CRDO shares. Roth Capital set a $95.00 price target on shares of Credo Technology Group and gave the company a "buy" rating in a report on Friday, June 13th. Susquehanna boosted their price target on shares of Credo Technology Group from $90.00 to $115.00 and gave the stock a "positive" rating in a research report on Tuesday, July 22nd. Cowen reaffirmed a "buy" rating on shares of Credo Technology Group in a report on Tuesday, June 3rd. Wall Street Zen cut shares of Credo Technology Group from a "buy" rating to a "hold" rating in a report on Saturday, July 12th. Finally, Needham & Company LLC increased their price target on shares of Credo Technology Group from $80.00 to $85.00 and gave the company a "buy" rating in a report on Tuesday, June 3rd. One equities research analyst has rated the stock with a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $87.91.

Credo Technology Group Trading Up 3.8%

The firm has a market cap of $18.04 billion, a price-to-earnings ratio of 388.82, a price-to-earnings-growth ratio of 1.82 and a beta of 2.57. The company's 50-day moving average is $82.55 and its 200-day moving average is $64.45.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results on Monday, June 2nd. The company reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.27 by $0.08. The firm had revenue of $170.00 million for the quarter, compared to analyst estimates of $159.59 million. Credo Technology Group had a net margin of 11.95% and a return on equity of 8.77%. The company's quarterly revenue was up 179.6% on a year-over-year basis. During the same quarter last year, the business posted $0.07 earnings per share. Equities research analysts forecast that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Insiders Place Their Bets

In other Credo Technology Group news, Director Lip Bu Tan sold 171,473 shares of Credo Technology Group stock in a transaction on Monday, June 16th. The shares were sold at an average price of $77.90, for a total value of $13,357,746.70. Following the completion of the sale, the director directly owned 613,725 shares of the company's stock, valued at approximately $47,809,177.50. The trade was a 21.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CTO Chi Fung Cheng sold 59,641 shares of Credo Technology Group stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $74.96, for a total transaction of $4,470,689.36. Following the completion of the sale, the chief technology officer directly owned 7,603,961 shares of the company's stock, valued at approximately $569,992,916.56. This trade represents a 0.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,023,139 shares of company stock valued at $82,940,430 in the last three months. 16.04% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in Credo Technology Group in the fourth quarter valued at about $117,242,000. Nuveen LLC bought a new stake in Credo Technology Group during the 1st quarter worth approximately $52,636,000. Alliancebernstein L.P. raised its stake in Credo Technology Group by 299.9% in the fourth quarter. Alliancebernstein L.P. now owns 1,740,982 shares of the company's stock valued at $117,011,000 after purchasing an additional 1,305,594 shares in the last quarter. Polar Capital Holdings Plc increased its holdings in shares of Credo Technology Group by 382.1% in the 4th quarter. Polar Capital Holdings Plc now owns 1,451,084 shares of the company's stock worth $97,527,000 after buying an additional 1,150,084 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD increased its holdings in shares of Credo Technology Group by 441.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 975,935 shares of the company's stock worth $65,594,000 after buying an additional 795,751 shares during the last quarter. 80.46% of the stock is currently owned by hedge funds and other institutional investors.

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.

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