Credo Technology Group (NASDAQ:CRDO) Shares Up 5.1% - What's Next?

Key Points

• Shares jumped 5.1% intraday to about $195 (high $198.97) on Friday, and analysts rate the stock an average of Moderate Buy with an average price target of $207.81.
• Credo beat Q1 estimates with EPS $1.07 vs. $0.78 and revenue $407.0M vs. $385.9M (revenue up 201.5% YoY), while reporting a net margin of 31.81% and a market cap of $35.98B (P/E 108.36).
• Insiders have sold about 428,999 shares (~$52.95M) in the past 90 days though they still own 11.84% of stock, and institutional ownership is high at 80.46% with firms like Goldman Sachs significantly increasing their stakes.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares shot up 5.1% during mid-day trading on Friday . The company traded as high as $198.97 and last traded at $195.04. 6,577,352 shares traded hands during trading, a decline of 10% from the average session volume of 7,304,475 shares. The stock had previously closed at $185.54.

Analysts Set New Price Targets

A number of research firms have issued reports on CRDO. Craig Hallum reissued a "buy" rating and set a $200.00 price target on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Zacks Research lowered shares of Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Mizuho reduced their price target on shares of Credo Technology Group from $225.00 to $200.00 and set an "outperform" rating for the company in a research report on Tuesday, March 3rd. Weiss Ratings reissued a "hold (c)" rating on shares of Credo Technology Group in a research report on Friday, March 27th. Finally, Rosenblatt Securities raised their price target on shares of Credo Technology Group from $125.00 to $175.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 15th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $207.81.

Credo Technology Group Trading Up 5.1%

The stock has a market capitalization of $35.98 billion, a PE ratio of 108.36 and a beta of 2.72. The firm's fifty day moving average price is $120.68 and its two-hundred day moving average price is $138.33.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its earnings results on Monday, March 2nd. The company reported $1.07 earnings per share for the quarter, beating the consensus estimate of $0.78 by $0.29. The firm had revenue of $407.01 million during the quarter, compared to analyst estimates of $385.94 million. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. The business's quarterly revenue was up 201.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.25 EPS. As a group, sell-side analysts anticipate that Credo Technology Group Holding Ltd. will post 2.36 earnings per share for the current fiscal year.

Insider Activity at Credo Technology Group

In other news, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $127.37, for a total transaction of $3,502,675.00. Following the completion of the transaction, the chief technology officer directly owned 6,299,870 shares of the company's stock, valued at $802,414,441.90. The trade was a 0.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO William Joseph Brennan sold 50,000 shares of the business's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $117.68, for a total transaction of $5,884,000.00. Following the completion of the sale, 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 position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 428,999 shares of company stock valued at $52,946,445. 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 added to or reduced their stakes in CRDO. NewEdge Advisors LLC increased its holdings in Credo Technology Group by 128.4% in the 1st quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock worth $284,000 after acquiring an additional 3,972 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in Credo Technology Group by 63.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock worth $61,235,000 after acquiring an additional 589,151 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Credo Technology Group by 2.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company's stock worth $12,480,000 after acquiring an additional 7,107 shares in the last quarter. CW Advisors LLC purchased a new stake in Credo Technology Group in the 2nd quarter worth $288,000. Finally, EverSource Wealth Advisors LLC increased its holdings in Credo Technology Group by 198.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock worth $46,000 after acquiring an additional 333 shares in the last quarter. Hedge funds and other 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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