Credo Technology Group (NASDAQ:CRDO) Stock Price Up 11% - Should You Buy?

Key Points

• Credo Technology Group shares jumped 11% in Tuesday trading, with the stock reaching as high as $275.43 as volume came in slightly above average.
• Wall Street sentiment remains bullish: several firms recently raised ratings and price targets, and the stock now carries a consensus Buy rating with a $263.11 average target.
• The company delivered strong quarterly results, posting EPS of $1.16 versus $1.02 expected and revenue growth of 157% year over year, while institutional ownership remains high at 80.46%.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares shot up 11% on Tuesday . The company traded as high as $275.43 and last traded at $272.7490. Approximately 8,011,500 shares were traded during mid-day trading, an increase of 2% from the average session volume of 7,860,401 shares. The stock had previously closed at $245.68.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on CRDO. Zacks Research upgraded shares of Credo Technology Group from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 19th. Jefferies Financial Group raised their target price on shares of Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Weiss Ratings raised shares of Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. JPMorgan Chase & Co. upped their price target on shares of Credo Technology Group from $230.00 to $250.00 and gave the stock an "overweight" rating in a report on Tuesday, June 2nd. Finally, TD Cowen increased their price target on Credo Technology Group from $240.00 to $260.00 and gave the company a "buy" 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 stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $263.11.

Credo Technology Group Stock Up 11.0%

The company has a 50 day moving average price of $214.77 and a 200-day moving average price of $157.64. The company has a market cap of $50.86 billion, a price-to-earnings ratio of 109.98, a P/E/G ratio of 1.09 and a beta of 3.22.

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

Insider Transactions at Credo Technology Group

In related news, CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $118.25, for a total value of $3,251,875.00. Following the sale, the chief technology officer owned 6,134,870 shares of the company's stock, valued at $725,448,377.50. The trade was a 0.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 40,000 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $249.48, for a total value of $9,979,200.00. Following the completion of the sale, the chief financial officer owned 501,873 shares of the company's stock, valued at $125,207,276.04. The trade was a 7.38% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 389,384 shares of company stock worth $74,982,168. Company insiders own 11.84% of the company's stock.

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds have recently made changes to their positions in the stock. NewEdge Advisors LLC lifted its stake in shares of Credo Technology Group by 128.4% in the first quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock worth $284,000 after acquiring an additional 3,972 shares during the period. Goldman Sachs Group Inc. increased its position in Credo Technology Group by 63.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock valued at $61,235,000 after purchasing an additional 589,151 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Credo Technology Group by 2.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company's stock worth $12,480,000 after purchasing an additional 7,107 shares during the last quarter. CW Advisors LLC bought a new position in Credo Technology Group during the 2nd quarter worth approximately $288,000. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Credo Technology Group by 198.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock worth $46,000 after purchasing an additional 333 shares during the period. 80.46% of the stock is currently owned by institutional investors.

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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