Credo Technology Group (NASDAQ:CRDO) Shares Up 4.2% - Here's Why

Key Points

• Credo Technology Group shares rose 4.2% on Wednesday, trading as high as $261.87 before closing at $249.33. Volume was strong at 7.4 million shares, slightly below its average session volume.
• Recent analyst commentary has been bullish, with firms like Mizuho, JPMorgan, Susquehanna, and Jefferies raising targets or maintaining positive ratings. MarketBeat data shows an average rating of “Moderate Buy” and an average price target of $248.41.
• The company’s latest earnings beat expectations, reporting $1.16 EPS on revenue of $437 million, with revenue up 157% year over year. Investors are also focused on Credo’s role as an AI connectivity and optical networking play, though some commentary warns the stock’s valuation may be getting stretched.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares shot up 4.2% during trading on Wednesday . The stock traded as high as $261.87 and last traded at $249.33. 7,401,692 shares were traded during mid-day trading, a decline of 2% from the average session volume of 7,529,636 shares. The stock had previously closed at $239.18.

More Credo Technology Group News

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Jim Cramer publicly praised Credo, saying “Credo’s just so good,” which can reinforce investor confidence and attract more momentum buyers. Jim Cramer Says “Credo’s Just so Good”
• Positive Sentiment: New articles framed CRDO as a leading AI connectivity play, with emphasis on optical networking demand and margin expansion, supporting the stock’s growth narrative. Credo: The AI Connectivity Winner Emerges
• Positive Sentiment: Mizuho reiterated an Outperform rating and lifted its price target to $290, signaling that Wall Street still sees meaningful upside after the recent rally. Mizuho Reiterates Outperform on Credo Technology Group Holding Ltd (CRDO)
• Positive Sentiment: Credo’s strong earnings beat and upbeat growth outlook remain key catalysts, helping explain why the stock has been bid up sharply. Credo Technology Group Holding (CRDO) Is Up 21.2% After Earnings Beat And DustPhotonics Deal - What's Changed
• Neutral Sentiment: CFO Daniel W. Fleming sold 40,000 shares under a pre-arranged 10b5-1 plan to cover tax withholding on vested equity awards, which is usually not a strong negative signal. SEC Form 4 filing
• Negative Sentiment: Some commentary says valuation is becoming stretched after the huge run-up, so the stock could be more vulnerable if execution or growth expectations fall short. Is CRDO Stock Still Worth Buying After Its Massive Run Higher?

Wall Street Analyst Weigh In

Several brokerages recently commented on CRDO. Susquehanna lifted their price objective on Credo Technology Group from $200.00 to $235.00 and gave the stock a "positive" rating in a report on Tuesday, June 2nd. Weiss Ratings raised Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. JPMorgan Chase & Co. boosted their price target on Credo Technology Group from $230.00 to $250.00 and gave the company an "overweight" rating in a report on Tuesday, June 2nd. Zacks Research raised Credo Technology Group from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 19th. Finally, Jefferies Financial Group boosted their price target on Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $248.41.

Credo Technology Group Stock Up 4.2%

The company has a fifty day simple moving average of $190.37 and a 200-day simple moving average of $152.06. The firm has a market cap of $45.99 billion, a P/E ratio of 100.54, a price-to-earnings-growth ratio of 1.36 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings results 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 during the quarter, compared to analyst estimates of $431.80 million. Credo Technology Group had a return on equity of 36.99% and a net margin of 35.37%.Credo Technology Group's revenue for the quarter was up 157.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.20 earnings per share. As a group, research analysts forecast that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current year.

Insider Transactions at Credo Technology Group

In other news, CFO Daniel W. Fleming sold 40,000 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $249.48, for a total value of $9,979,200.00. Following the completion of the transaction, the chief financial officer owned 501,873 shares of the company's stock, valued at $125,207,276.04. This represents a 7.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 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. Also, CTO Chi Fung Cheng sold 27,500 shares of the company's stock in a transaction dated Friday, April 10th. The stock was 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 directly owned 6,134,870 shares of the company's stock, valued at approximately $725,448,377.50. This trade represents a 0.45% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 389,384 shares of company stock valued at $66,025,968 over the last 90 days. Company insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

Several institutional investors and hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. raised its position in shares of Credo Technology Group by 16.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 552 shares of the company's stock valued at $80,000 after buying an additional 77 shares during the last quarter. Illinois Municipal Retirement Fund lifted its position in shares of Credo Technology Group by 0.6% in the third quarter. Illinois Municipal Retirement Fund now owns 15,783 shares of the company's stock worth $2,298,000 after buying an additional 91 shares in the last quarter. QRG Capital Management Inc. lifted its position in shares of Credo Technology Group by 1.7% in the first quarter. QRG Capital Management Inc. now owns 5,402 shares of the company's stock worth $507,000 after buying an additional 91 shares in the last quarter. Bank of Nova Scotia lifted its position in shares of Credo Technology Group by 1.6% in the first quarter. Bank of Nova Scotia now owns 6,026 shares of the company's stock worth $566,000 after buying an additional 92 shares in the last quarter. Finally, Mark Sheptoff Financial Planning LLC lifted its position in shares of Credo Technology Group by 2.0% in the fourth quarter. Mark Sheptoff Financial Planning LLC now owns 5,150 shares of the company's stock worth $741,000 after buying an additional 100 shares in the last quarter. Institutional investors own 80.46% of the company's stock.

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.

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