Credo Technology Group (NASDAQ:CRDO) Shares Gap Up - Time to Buy?

Key Points

• Shares of Credo gapped up, opening at $123.66 after a $119.59 close and last trading around $132.46 on roughly 3.42 million shares of volume.
• Street sentiment is positive — the consensus rating is a Buy with a consensus target of $204.38, and multiple firms have set targets in the $165–$200 range.
• The company beat expectations this quarter with EPS $1.07 vs. $0.78 est. and revenue of $407.0M (+201.5% YoY), although insiders have sold about 391,119 shares (~$46.5M) in the past three months.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $119.59, but opened at $123.66. Credo Technology Group shares last traded at $132.4560, with a volume of 3,421,343 shares changing hands.

Analysts Set New Price Targets

A number of brokerages have weighed in on CRDO. Stifel Nicolaus set a $200.00 price target on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Craig Hallum reaffirmed a "buy" rating and set a $200.00 price target on shares of Credo Technology Group in a research report on Tuesday, March 3rd. The Goldman Sachs Group set a $165.00 price target on shares of Credo Technology Group and gave the company a "buy" rating in a research report on Thursday, February 19th. Susquehanna reduced their price target on shares of Credo Technology Group from $230.00 to $170.00 and set a "positive" rating on the stock in a research report on Tuesday, March 3rd. Finally, Jefferies Financial Group initiated coverage on shares of Credo Technology Group in a research report on Monday. They set a "buy" rating and a $175.00 price target on the stock. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, Credo Technology Group presently has a consensus rating of "Buy" and a consensus target price of $204.38.

Credo Technology Group Price Performance

The business's 50-day moving average price is $111.31 and its 200 day moving average price is $136.78. The firm has a market capitalization of $24.37 billion, a price-to-earnings ratio of 73.44 and a beta of 2.72.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its earnings results on Monday, March 2nd. The company reported $1.07 EPS for the quarter, topping analysts' consensus estimates of $0.78 by $0.29. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. The business had revenue of $407.01 million for the quarter, compared to analysts' expectations of $385.94 million. During the same period in the previous year, the company posted $0.25 earnings per share. The business's revenue for the quarter was up 201.5% compared to the same quarter last year. As a group, sell-side analysts expect that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO William Joseph Brennan sold 50,000 shares of the business's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $117.68, for a total transaction of $5,884,000.00. Following the transaction, the chief executive officer directly owned 1,782,502 shares of the company's stock, valued at approximately $209,764,835.36. The trade was a 2.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Chi Fung Cheng sold 30,000 shares of the company's stock in a transaction on Thursday, January 22nd. The shares were sold at an average price of $136.33, for a total transaction of $4,089,900.00. Following the completion of the sale, the chief technology officer directly owned 6,327,370 shares in the company, valued at $862,610,352.10. This represents a 0.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 391,119 shares of company stock worth $46,493,731. Corporate insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Institutional investors have recently added to or reduced their stakes in the stock. Optimize Financial Inc acquired a new stake in Credo Technology Group in the third quarter valued at $1,431,000. Estate Counselors LLC bought a new stake in Credo Technology Group during the third quarter valued at $2,548,000. Global Trust Asset Management LLC bought a new stake in Credo Technology Group during the third quarter valued at $2,167,000. New York State Common Retirement Fund increased its stake in Credo Technology Group by 106.5% during the third quarter. New York State Common Retirement Fund now owns 146,134 shares of the company's stock valued at $21,279,000 after purchasing an additional 75,369 shares during the last quarter. Finally, EFG Asset Management North America Corp. increased its stake in Credo Technology Group by 76.5% during the third quarter. EFG Asset Management North America Corp. now owns 21,976 shares of the company's stock valued at $3,200,000 after purchasing an additional 9,527 shares during the last quarter. 80.46% of the stock is owned by institutional investors and hedge funds.

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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