Credo Technology Group (NASDAQ:CRDO) Shares Up 5.9% - Still a Buy?

Key Points

• Shares jumped 5.9% to about $175.77 on Wednesday (intraday high $175.96) with volume ~4.28M shares (down ~41% vs. average); the company has a market cap of $32.42 billion and a P/E of 97.65.
• Analyst sentiment is positive: one Strong Buy, 14 Buys and three Holds give an average rating of "Moderate Buy" with an average price target of $207.81 (individual targets range as high as $260).
• Recent quarter beat expectations: Credo reported $1.07 EPS vs. $0.78 expected and $407.0M revenue vs. $385.9M, with revenue up 201.5% year-over-year and a net margin of 31.81%.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shot up 5.9% during trading on Wednesday . The stock traded as high as $175.96 and last traded at $175.77. 4,277,684 shares were traded during mid-day trading, a decline of 41% from the average session volume of 7,249,431 shares. The stock had previously closed at $165.92.

Analysts Set New Price Targets

Several brokerages recently commented on CRDO. Needham & Company LLC reiterated a "buy" rating and issued a $220.00 price objective on shares of Credo Technology Group in a research note on Wednesday, April 15th. Mizuho reduced their price objective on shares of Credo Technology Group from $225.00 to $200.00 and set an "outperform" rating for the company in a research note on Tuesday, March 3rd. Craig Hallum restated a "buy" rating and set a $200.00 target price on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Rosenblatt Securities lifted their target price 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. Finally, Barclays restated an "overweight" rating and set a $260.00 target price on shares of Credo Technology Group in a research report on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Credo Technology Group currently has an average rating of "Moderate Buy" and an average price target of $207.81.

Credo Technology Group Price Performance

The company has a market cap of $32.42 billion, a price-to-earnings ratio of 97.65 and a beta of 2.72. The business's 50-day simple moving average is $124.16 and its 200-day simple moving average is $138.99.

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

Insider Buying and Selling at Credo Technology Group

In other news, CEO William Joseph Brennan sold 6,149 shares of Credo Technology Group stock in a transaction dated Sunday, April 5th. The shares were sold at an average price of $101.45, for a total transaction of $623,816.05. Following the completion of the sale, the chief executive officer directly owned 222,311 shares in the company, valued at $22,553,450.95. The trade was a 2.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $179.33, for a total transaction of $4,931,575.00. Following the sale, the chief technology officer owned 6,052,370 shares of the company's stock, valued at approximately $1,085,371,512.10. This trade represents a 0.45% decrease in their ownership of the stock. 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. Over the last quarter, insiders sold 456,499 shares of company stock valued at $57,878,020. Corporate insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Atlantic Union Bankshares Corp purchased a new stake in Credo Technology Group in the third quarter valued at approximately $25,000. Crewe Advisors LLC grew its holdings in Credo Technology Group by 163.1% in the fourth quarter. Crewe Advisors LLC now owns 171 shares of the company's stock valued at $25,000 after purchasing an additional 106 shares during the period. Reflection Asset Management purchased a new stake in Credo Technology Group in the fourth quarter valued at approximately $25,000. Acumen Wealth Advisors LLC purchased a new stake in Credo Technology Group in the fourth quarter valued at approximately $25,000. Finally, First Horizon Corp purchased a new stake in Credo Technology Group in the third quarter valued at approximately $26,000. 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.

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