Credo Technology Group (NASDAQ:CRDO) Shares Gap Up on Analyst Upgrade

Key Points

• Credo Technology Group shares jumped after Stifel Nicolaus raised its price target from $250 to $350 and reiterated a buy rating. The stock opened above its previous close and was last trading around $302.
• Several other analysts have also turned more bullish, with recent price-target increases from firms including Roth Mkm, Mizuho, JPMorgan, and Rosenblatt. Overall, the stock carries a Moderate Buy consensus and an average price target of $258.22.
• The company recently reported strong quarterly results, with EPS of $1.16 beating estimates and revenue of $437 million, up 157% year over year. Despite the rally, insiders have been selling shares, including the CFO and CTO in recent transactions.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price gapped up prior to trading on Monday after Stifel Nicolaus raised their price target on the stock from $250.00 to $350.00. The stock had previously closed at $271.83, but opened at $290.78. Stifel Nicolaus currently has a buy rating on the stock. Credo Technology Group shares last traded at $302.1990, with a volume of 2,355,767 shares.

Other equities analysts also recently issued research reports about the stock. Roth Mkm increased their price target on shares of Credo Technology Group from $200.00 to $300.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Craig Hallum restated a "buy" rating and set a $200.00 price objective on shares of Credo Technology Group in a research note on Tuesday, March 3rd. Mizuho upped their price objective on shares of Credo Technology Group from $260.00 to $290.00 and gave the company an "outperform" rating in a report on Tuesday, June 2nd. JPMorgan Chase & Co. increased their price objective 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, Rosenblatt Securities increased their price objective on shares of Credo Technology Group from $175.00 to $215.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 2nd. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $258.22.

Insider Activity

In other Credo Technology Group news, CTO Chi Fung Cheng sold 27,500 shares of the company's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $118.25, for a total value of $3,251,875.00. Following the completion of the transaction, the chief technology officer owned 6,134,870 shares in the company, valued at approximately $725,448,377.50. This represents a 0.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 40,000 shares of the stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $249.48, for a total transaction of $9,979,200.00. Following the sale, the chief financial officer directly owned 501,873 shares in the company, valued at approximately $125,207,276.04. The trade was a 7.38% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 416,884 shares of company stock valued at $72,809,943 in the last three months. 11.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds have recently bought and sold shares of CRDO. Crewe Advisors LLC raised its stake 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 buying an additional 106 shares during the period. Reflection Asset Management purchased a new position in shares of Credo Technology Group during the 4th quarter valued at approximately $25,000. Acumen Wealth Advisors LLC acquired a new stake in Credo Technology Group in the 4th quarter valued at $25,000. Flagship Harbor Advisors LLC purchased a new stake in Credo Technology Group in the 4th quarter worth $32,000. Finally, AlphaCentric Advisors LLC purchased a new stake in Credo Technology Group in the 1st quarter worth $33,000. Hedge funds and other institutional investors own 80.46% of the company's stock.

Credo Technology Group Stock Up 11.5%

The stock's 50-day simple moving average is $199.85 and its two-hundred day simple moving average is $154.04. The company has a market capitalization of $56.54 billion, a price-to-earnings ratio of 122.20, a PEG ratio of 1.43 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $431.80 million. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The company's revenue was up 157.0% compared to the same quarter last year. During the same period last year, the firm posted $0.20 earnings per share. On average, sell-side analysts forecast that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current year.

Credo Technology Group Company Profile

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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