Credo Technology Group (NASDAQ:CRDO) Shares Up 3.3% - Still a Buy?

Key Points

• Credo Technology Group's shares rose by 3.3% to close at $149.63, with trading volume increasing by 15% compared to the average session.
• Analysts have upgraded their ratings and target prices for CRDO, with Roth Capital setting a target of $170.00 and Needham raising it to $150.00.
• Despite a year-over-year revenue increase of 273.6%, the company missed earnings expectations by $0.02, reporting $0.34 EPS against a consensus of $0.36.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shot up 3.3% on Thursday . The company traded as high as $155.59 and last traded at $149.63. 6,110,100 shares traded hands during trading, an increase of 15% from the average session volume of 5,294,880 shares. The stock had previously closed at $144.91.

Analysts Set New Price Targets

A number of research firms recently weighed in on CRDO. Roth Capital reaffirmed a "buy" rating and set a $170.00 price target on shares of Credo Technology Group in a report on Tuesday. Wall Street Zen raised Credo Technology Group from a "hold" rating to a "buy" rating in a research note on Sunday. Needham & Company LLC lifted their target price on Credo Technology Group from $85.00 to $150.00 and gave the company a "buy" rating in a research note on Thursday, September 4th. Barclays lifted their target price on Credo Technology Group from $85.00 to $165.00 and gave the company an "overweight" rating in a research note on Thursday, September 4th. Finally, Mizuho lifted their target price on Credo Technology Group from $135.00 to $155.00 and gave the company an "outperform" rating in a research note on Thursday, September 4th. Two analysts have rated the stock with a Strong Buy rating and thirteen have issued a Buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $128.55.

Credo Technology Group Price Performance

The business has a 50 day moving average of $131.38 and a 200 day moving average of $86.69. The firm has a market capitalization of $25.89 billion, a price-to-earnings ratio of 223.33 and a beta of 2.60.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its earnings results on Wednesday, September 3rd. The company reported $0.34 earnings per share 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 return on equity of 19.02% and a net margin of 20.85%.The business's revenue was up 273.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.04 earnings per share. Credo Technology Group has set its Q2 2026 guidance at EPS. As a group, equities analysts predict that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Insider Buying and Selling

In other news, CEO William Joseph Brennan sold 18,016 shares of the business's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $164.11, for a total value of $2,956,605.76. Following the sale, the chief executive officer directly owned 369,173 shares in the company, valued at $60,584,981.03. The trade was a 4.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider James Laufman sold 10,000 shares of the business's stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $140.00, for a total value of $1,400,000.00. Following the completion of the sale, the insider owned 232,284 shares in the company, valued at approximately $32,519,760. This trade represents a 4.13% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 798,915 shares of company stock valued at $99,967,495. Corporate insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Institutional investors have recently modified their holdings of the company. GAMMA Investing LLC raised its holdings in Credo Technology Group by 6.7% during the third quarter. GAMMA Investing LLC now owns 1,891 shares of the company's stock worth $275,000 after acquiring an additional 118 shares in the last quarter. China Universal Asset Management Co. Ltd. bought a new stake in Credo Technology Group during the second quarter worth about $1,296,000. Orion Porfolio Solutions LLC bought a new stake in Credo Technology Group during the second quarter worth about $663,000. Thrivent Financial for Lutherans raised its holdings in Credo Technology Group by 5.4% during the second quarter. Thrivent Financial for Lutherans now owns 35,225 shares of the company's stock worth $3,261,000 after acquiring an additional 1,812 shares in the last quarter. Finally, Thompson Davis & CO. Inc. bought a new stake in Credo Technology Group during the second quarter worth about $380,000. 80.46% of the stock is currently owned by 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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