Credo Technology Group (NASDAQ:CRDO) Shares Up 5.5% - Here's Why

Key Points

• Credo Technology Group shares rose 5.5% to $218.35 in Monday trading, with volume below the stock’s average daily level.
• Analysts remain bullish: Credo has a consensus “Buy” rating and an average price target of $266.17, with several firms recently raising their targets.
• The company reported strong quarterly results, including $1.16 in EPS and $437 million in revenue, while revenue surged 157% year over year; insiders have nevertheless sold about $72.8 million of stock over the past three months.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price rose 5.5% during trading on Monday . The stock traded as high as $219.79 and last traded at $218.35. 4,635,941 shares were traded during mid-day trading, a decline of 39% from the average session volume of 7,601,887 shares. The stock had previously closed at $206.99.

Analysts Set New Price Targets

A number of analysts have issued reports on CRDO shares. Mizuho raised their target price on Credo Technology Group from $260.00 to $290.00 and gave the stock an "outperform" rating in a research report on Tuesday, June 2nd. Rothschild & Co Redburn assumed coverage on Credo Technology Group in a research report on Friday, May 1st. They set a "buy" rating and a $206.00 price target on the stock. TD Cowen increased their price target on Credo Technology Group from $240.00 to $260.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. Jefferies Financial Group lifted their price objective on Credo Technology Group from $225.00 to $270.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Finally, JPMorgan Chase & Co. boosted their price objective on Credo Technology Group from $230.00 to $250.00 and gave the company an "overweight" rating in a research note on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Credo Technology Group currently has a consensus rating of "Buy" and an average target price of $266.17.

Credo Technology Group Stock Performance

The business's 50 day moving average is $236.60 and its two-hundred day moving average is $171.95. The firm has a market capitalization of $40.72 billion, a PE ratio of 88.04, a price-to-earnings-growth ratio of 0.95 and a beta of 3.23.

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

Insider Transactions at Credo Technology Group

In other Credo Technology Group news, CFO Daniel W. Fleming sold 7,580 shares of the firm's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $245.88, for a total value of $1,863,770.40. Following the completion of the transaction, the chief financial officer owned 504,708 shares in the company, valued at $124,097,603.04. This trade represents a 1.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $205.54, for a total value of $5,652,350.00. Following the transaction, the chief technology officer directly owned 5,799,870 shares of the company's stock, valued at $1,192,105,279.80. The trade was a 0.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 302,162 shares of company stock worth $72,810,546 in the last three months. 11.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds have recently bought and sold shares of CRDO. Reflection Asset Management purchased a new stake in Credo Technology Group in the 4th quarter worth approximately $25,000. Acumen Wealth Advisors LLC purchased a new position in shares of Credo Technology Group during the 4th quarter valued at $25,000. Flagship Harbor Advisors LLC bought a new position in shares of Credo Technology Group in the fourth quarter worth $32,000. Smallwood Wealth Investment Management LLC purchased a new stake in shares of Credo Technology Group in the fourth quarter worth $36,000. Finally, Van ECK Associates Corp purchased a new stake in shares of Credo Technology Group in the fourth quarter worth $37,000. Hedge funds and other institutional investors own 80.46% of the company's stock.

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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