Credo Technology Group (NASDAQ:CRDO) Shares Up 7.5% - Should You Buy?

Key Points

• Shares jumped 7.5% intraday to about $193.57 on Tuesday, with ~6.0 million shares traded (slightly below average volume).
• The company posted a strong quarter, reporting $1.07 EPS vs. $0.78 expected and $407.01M revenue (up 201.5% year‑over‑year), with a 31.8% net margin.
• Analysts rate the stock a consensus "Moderate Buy" with an average target of $207.71 (multiple $200 targets), while insiders have been net sellers recently (359,108 shares sold), and institutions own ~80.5% of shares.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price shot up 7.5% on Tuesday . The company traded as high as $199.81 and last traded at $193.57. 6,022,487 shares traded hands during trading, a decline of 15% from the average session volume of 7,116,626 shares. The stock had previously closed at $180.06.

Analyst Ratings Changes

A number of research firms have recently weighed in on CRDO. Stifel Nicolaus set a $200.00 price target on shares of Credo Technology Group in a research note on Tuesday, March 3rd. Zacks Research cut Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Mizuho dropped their price target on 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. Craig Hallum restated a "buy" rating and issued a $200.00 price target on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Finally, Rosenblatt Securities raised their price target on Credo Technology Group from $125.00 to $175.00 and gave the company a "neutral" rating in a research report on Wednesday, April 15th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $207.71.

Credo Technology Group Price Performance

The firm has a market cap of $35.70 billion, a PE ratio of 107.54 and a beta of 3.17. The business has a 50-day moving average price of $125.98 and a two-hundred day moving average price of $139.49.

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

Insider Buying and Selling at Credo Technology Group

In related news, CEO William Joseph Brennan sold 6,149 shares of the stock in a transaction on Sunday, April 5th. The stock was sold at an average price of $101.45, for a total transaction of $623,816.05. Following the sale, the chief executive officer owned 222,311 shares of the company's stock, valued at $22,553,450.95. This trade represents a 2.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider James Laufman sold 10,000 shares of the stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $164.41, for a total value of $1,644,100.00. Following the sale, the insider directly owned 198,609 shares in the company, valued at approximately $32,653,305.69. The trade was a 4.79% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 359,108 shares of company stock valued at $45,449,126. 11.84% of the stock is owned by company insiders.

Institutional Trading of Credo Technology Group

A number of large investors have recently made changes to their positions in CRDO. Mirae Asset Global Investments Co. Ltd. boosted its stake in Credo Technology Group by 9.4% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 271,067 shares of the company's stock worth $39,004,000 after buying an additional 23,332 shares during the last quarter. Optimize Financial Inc acquired a new stake in Credo Technology Group in the 3rd quarter worth about $1,431,000. Estate Counselors LLC acquired a new stake in Credo Technology Group in the 3rd quarter worth about $2,548,000. Global Trust Asset Management LLC acquired a new stake in Credo Technology Group in the 3rd quarter worth about $2,167,000. Finally, FengHe Fund Management Pte. Ltd. boosted its stake in Credo Technology Group by 5.7% in the 4th quarter. FengHe Fund Management Pte. Ltd. now owns 162,269 shares of the company's stock worth $23,349,000 after buying an additional 8,769 shares during the last quarter. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.