Credo Technology Group (NASDAQ:CRDO) Shares Up 8.8% - Still a Buy?

Key Points

• Credo Technology shares jumped 8.8% to about $282.82, bringing the company’s market capitalization to roughly $52.7 billion.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and average price target of $266.17, though the stock’s valuation is elevated at a P/E ratio above 114.
• Recent quarterly results exceeded expectations: EPS was $1.16 versus $1.02 forecast, while revenue rose 157% year over year to $437 million. However, insiders have sold more than $101 million of stock over the past three months.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price was up 8.8% during mid-day trading on Monday . The stock traded as high as $286.24 and last traded at $282.82. Approximately 5,713,488 shares were traded during mid-day trading, a decline of 23% from the average daily volume of 7,400,614 shares. The stock had previously closed at $259.90.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Rosenblatt Securities raised their target price on shares of Credo Technology Group from $175.00 to $215.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 2nd. Jefferies Financial Group upped their price target on shares of Credo Technology Group from $225.00 to $270.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Wall Street Zen cut shares of Credo Technology Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Barclays raised their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an "overweight" rating in a research report on Monday, July 20th. Finally, Rothschild & Co Redburn initiated coverage on shares of Credo Technology Group in a report on Friday, May 1st. They issued a "buy" rating and a $206.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $266.17.

Credo Technology Group Trading Up 8.8%

The firm has a 50 day moving average of $241.19 and a 200-day moving average of $178.89. The company has a market cap of $52.74 billion, a P/E ratio of 114.04, a P/E/G ratio of 1.19 and a beta of 3.23.

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

Insider Activity at Credo Technology Group

In related news, CEO William Joseph Brennan sold 54,984 shares of the firm's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $218.57, for a total transaction of $12,017,852.88. Following the completion of the transaction, the chief executive officer directly owned 367,327 shares of the company's stock, valued at approximately $80,286,662.39. This trade represents a 13.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $243.06, for a total transaction of $6,684,150.00. Following the completion of the sale, the chief technology officer owned 5,882,370 shares in the company, valued at approximately $1,429,768,852.20. This represents a 0.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 Inflows and Outflows

A number of institutional investors have recently made changes to their positions in CRDO. Reflection Asset Management purchased a new stake in shares of Credo Technology Group in the fourth quarter worth about $25,000. Acumen Wealth Advisors LLC bought a new stake in Credo Technology Group in the 4th quarter worth approximately $25,000. AlphaCentric Advisors LLC bought a new stake in Credo Technology Group in the 1st quarter worth approximately $33,000. Van ECK Associates Corp bought a new stake in Credo Technology Group in the 4th quarter worth approximately $37,000. Finally, Western Wealth Management LLC purchased a new stake in shares of Credo Technology Group during the 1st quarter worth approximately $38,000. 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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