Credo Technology Group (NASDAQ:CRDO) Shares Gap Up - Here's Why

Key Points

• Credo Technology Group shares opened at $152.46 after closing at $144.91, showing significant pre-market movement.
• Analysts have raised their price targets for CRDO, with Needham increasing it to $150.00 and Barclays to $165.00, while several upgrades have shifted ratings to "Buy" and "Strong Buy."
• Despite a revenue increase of 273.6% year-over-year, the company missed EPS estimates for the last quarter, reporting $0.34 compared to a consensus of $0.36.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares gapped up before the market opened on Thursday . The stock had previously closed at $144.91, but opened at $152.46. Credo Technology Group shares last traded at $152.06, with a volume of 1,316,838 shares changing hands.

Wall Street Analyst Weigh In

CRDO has been the topic of several recent analyst reports. Needham & Company LLC increased their price objective on shares of Credo Technology Group from $85.00 to $150.00 and gave the stock a "buy" rating in a report on Thursday, September 4th. Cowen restated a "buy" rating on shares of Credo Technology Group in a report on Thursday, September 4th. Wall Street Zen upgraded shares of Credo Technology Group from a "hold" rating to a "buy" rating in a research note on Sunday. Zacks Research raised Credo Technology Group from a "hold" rating to a "strong-buy" rating in a report on Monday, September 8th. Finally, Barclays increased their price objective on shares of Credo Technology Group from $85.00 to $165.00 and gave the company an "overweight" rating in a report on Thursday, September 4th. Two investment analysts have rated the stock with a Strong Buy rating and thirteen have issued a Buy rating to the company. According to MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $128.55.

Credo Technology Group Trading Up 5.2%

The company has a market capitalization of $26.36 billion, a P/E ratio of 228.60 and a beta of 2.60. The business's fifty day moving average price is $131.38 and its 200 day moving average price is $86.69.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results on Wednesday, September 3rd. The company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.02). The business 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 business's revenue was up 273.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.04 EPS. Credo Technology Group has set its Q2 2026 guidance at EPS. Equities research analysts anticipate that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Insider Buying and Selling at Credo Technology Group

In other news, CEO William Joseph Brennan sold 150,000 shares of Credo Technology Group stock in a transaction on Friday, August 1st. The shares were sold at an average price of $106.87, for a total value of $16,030,500.00. Following the completion of the sale, the chief executive officer owned 2,061,978 shares in the company, valued at $220,363,588.86. The trade was a 6.78% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CTO Chi Fung Cheng sold 55,000 shares of the firm's stock in a transaction on Monday, July 7th. The shares were sold at an average price of $91.94, for a total value of $5,056,700.00. Following the transaction, the chief technology officer owned 7,328,961 shares in the company, valued at approximately $673,824,674.34. This represents a 0.74% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 798,915 shares of company stock valued at $99,967,495 in the last ninety days. Insiders own 11.84% of the company's stock.

Hedge Funds Weigh In On Credo Technology Group

Institutional investors have recently bought and sold shares of the company. Operose Advisors LLC lifted its position in shares of Credo Technology Group by 69.2% during the first quarter. Operose Advisors LLC now owns 616 shares of the company's stock worth $25,000 after purchasing an additional 252 shares in the last quarter. Northwestern Mutual Wealth Management Co. acquired a new stake in Credo Technology Group in the first quarter valued at approximately $25,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in Credo Technology Group in the first quarter valued at approximately $27,000. Pinpoint Asset Management Singapore Pte. Ltd. acquired a new stake in Credo Technology Group in the second quarter valued at approximately $27,000. Finally, Harbour Investments Inc. acquired a new stake in Credo Technology Group in the first quarter valued at $29,000. 80.46% of the stock is 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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