Credo Technology Group (NASDAQ:CRDO) Shares Gap Up - What's Next?

Key Points

• Credo Technology Group shares jumped: CRDO opened at $274.44, up from a previous close of $259.90, and last traded near $274.72.
• Analyst sentiment remains positive but mixed: The stock carries a “Moderate Buy” consensus rating with an average price target of $266.17, although Wall Street Zen and Zacks Research recently downgraded it to “Hold.”
• Strong financial performance supports the valuation: Quarterly revenue rose 157% year over year to $437 million, while EPS of $1.16 exceeded estimates of $1.02; however, the stock trades at a high P/E ratio of 113.76, and insiders have sold more than $101 million in shares over the past quarter.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $259.90, but opened at $274.44. Credo Technology Group shares last traded at $274.7160, with a volume of 1,298,285 shares.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on CRDO. Wall Street Zen downgraded shares of Credo Technology Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Needham & Company LLC upped their price objective on shares of Credo Technology Group from $220.00 to $275.00 and gave the company a "buy" rating in a research note on Monday, June 1st. Evercore assumed coverage on shares of Credo Technology Group in a research note on Monday, June 22nd. They set an "outperform" rating and a $325.00 price objective for the company. Zacks Research downgraded shares of Credo Technology Group from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. Finally, Roth Capital raised their target price on shares of Credo Technology Group from $200.00 to $300.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Credo Technology Group has an average rating of "Moderate Buy" and a consensus price target of $266.17.

Credo Technology Group Stock Performance

The business has a 50 day simple moving average of $241.19 and a 200-day simple moving average of $178.89. The firm has a market capitalization of $52.63 billion, a price-to-earnings ratio of 113.76, a P/E/G ratio of 1.19 and a beta of 3.23.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings results on Monday, June 1st. The company reported $1.16 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.14. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The firm had revenue of $437.00 million for the quarter, compared to analysts' expectations of $431.80 million. During the same quarter in the previous year, the company posted $0.20 EPS. The company's revenue was up 157.0% compared to the same quarter last year. Equities analysts predict that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current fiscal year.

Insider Activity

In other news, CTO Chi Fung Cheng sold 27,500 shares of the firm's stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $243.06, for a total transaction of $6,684,150.00. Following the completion of the sale, the chief technology officer owned 5,882,370 shares in the company, valued at $1,429,768,852.20. This trade represents a 0.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Joseph Brennan sold 54,984 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $218.57, for a total transaction of $12,017,852.88. Following the sale, the chief executive officer owned 367,327 shares of the company's stock, valued at $80,286,662.39. This represents a 13.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 435,076 shares of company stock valued at $101,043,506. Company insiders own 11.84% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Reflection Asset Management acquired a new position in shares of Credo Technology Group in the 4th quarter valued at $25,000. Acumen Wealth Advisors LLC acquired a new stake in shares of Credo Technology Group during the 4th quarter worth about $25,000. AlphaCentric Advisors LLC purchased a new stake in Credo Technology Group in the 1st quarter valued at about $33,000. Van ECK Associates Corp purchased a new stake in Credo Technology Group in the 4th quarter valued at about $37,000. Finally, Western Wealth Management LLC acquired a new position in Credo Technology Group in the first quarter valued at about $38,000. 80.46% of the stock is currently owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source