Credo Technology Group (NASDAQ:CRDO) Shares Up 8.4% - Here's What Happened

Key Points

• Credo Technology shares jumped 8.4% to about $249.89, with the stock reaching $250 during Friday trading.
• Analyst sentiment remains broadly positive, with 16 of 19 analysts rating the stock Buy or Strong Buy and an average price target of $266.17; Bank of America raised its target to $340.
• The company reported strong quarterly results, including $1.16 in EPS versus the $1.02 consensus estimate and 157% year-over-year revenue growth to $437 million. However, insiders sold $101 million of stock over the past three months.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares shot up 8.4% on Friday . The stock traded as high as $250.00 and last traded at $249.89. Approximately 4,215,354 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 7,521,696 shares. The stock had previously closed at $230.43.

Analysts Set New Price Targets

Several equities analysts have commented on the company. Mizuho increased their price target on Credo Technology Group from $260.00 to $290.00 and gave the company an "outperform" rating in a report on Tuesday, June 2nd. Zacks Research cut shares of Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research note on Monday. TD Cowen upped their price objective on shares of Credo Technology Group from $240.00 to $260.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Bank of America raised their target price on shares of Credo Technology Group from $252.00 to $340.00 and gave the company a "buy" rating in a research note on Tuesday, June 23rd. Finally, Wall Street Zen cut shares of Credo Technology Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $266.17.

Credo Technology Group Price Performance

The firm's 50 day moving average price is $237.16 and its 200-day moving average price is $174.01. The firm has a market cap of $46.61 billion, a price-to-earnings ratio of 100.78, a P/E/G ratio of 1.03 and a beta of 3.23.

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

Insider Buying and Selling

In related news, COO Yat Tung Lam sold 55,441 shares of the firm's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the sale, the chief operating officer directly owned 2,529,169 shares of the company's stock, valued at $538,763,580.38. This trade represents a 2.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 7,580 shares of Credo Technology Group stock in a transaction on Wednesday, July 8th. The shares were 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 of the company's stock, valued at approximately $124,097,603.04. The trade was a 1.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 435,076 shares of company stock worth $101,043,506 in the last three months. Insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

A number of hedge funds have recently added to or reduced their stakes in CRDO. Reflection Asset Management acquired a new position in shares of Credo Technology Group during the fourth quarter worth approximately $25,000. Acumen Wealth Advisors LLC acquired a new stake in shares of Credo Technology Group in the fourth quarter valued at approximately $25,000. Flagship Harbor Advisors LLC bought a new position in Credo Technology Group in the 4th quarter worth approximately $32,000. Smallwood Wealth Investment Management LLC bought a new position in Credo Technology Group in the 4th quarter worth approximately $36,000. Finally, Van ECK Associates Corp acquired a new position in Credo Technology Group during the 4th quarter worth $37,000. 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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