Credo Technology Group (NASDAQ:CRDO) Stock Price Up 1.7% After Better-Than-Expected Earnings

Key Points

• Shares rose 1.7% after Credo reported EPS of $1.07 vs. the $0.78 consensus, with volume jumping ~67% to about 11.36 million shares.
• Insiders have been active sellers — including the CEO (50,000 shares at $153.16) and CTO (55,000 shares at $174.70) — with insiders selling 917,976 shares (~$136.6M) in the last three months and owning 11.84% of the stock.
• Analyst sentiment is broadly positive: the consensus is a "Moderate Buy" with an average price target of $209.29 (individual targets range up to $260).

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded up 1.7% on Monday following a better than expected earnings announcement. The stock traded as high as $115.69 and last traded at $114.22. 11,357,955 shares traded hands during trading, an increase of 67% from the average session volume of 6,787,155 shares. The stock had previously closed at $112.27.

The company reported $1.07 earnings per share for the quarter, topping the consensus estimate of $0.78 by $0.29. Credo Technology Group had a return on equity of 25.28% and a net margin of 26.63%.

Analyst Ratings Changes

A number of brokerages recently commented on CRDO. Zacks Research cut shares of Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, February 2nd. Roth Mkm lowered their target price on shares of Credo Technology Group from $250.00 to $200.00 and set a "buy" rating on the stock in a report on Tuesday, February 10th. New Street Research set a $240.00 target price on Credo Technology Group in a research report on Tuesday, December 2nd. Wolfe Research set a $240.00 price target on Credo Technology Group in a report on Tuesday, December 2nd. Finally, Barclays reiterated an "overweight" rating and issued a $260.00 price target on shares of Credo Technology Group in a research report on Thursday, January 15th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $209.29.

Insider Activity

In other news, CEO William Joseph Brennan sold 50,000 shares of Credo Technology Group stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $153.16, for a total value of $7,658,000.00. Following the transaction, the chief executive officer owned 1,892,502 shares in the company, valued at approximately $289,855,606.32. The trade was a 2.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Chi Fung Cheng sold 55,000 shares of Credo Technology Group stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $174.70, for a total value of $9,608,500.00. Following the completion of the transaction, the chief technology officer directly owned 6,613,961 shares in the company, valued at $1,155,458,986.70. This trade represents a 0.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 917,976 shares of company stock worth $136,567,647. 11.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Credo Technology Group

A number of large investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC raised its stake in shares of Credo Technology Group by 128.4% during the first quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock valued at $284,000 after acquiring an additional 3,972 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Credo Technology Group by 63.0% in the first quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock worth $61,235,000 after purchasing an additional 589,151 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased 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 valued at $12,480,000 after purchasing an additional 7,107 shares during the period. Nisa Investment Advisors LLC raised its position in Credo Technology Group by 3.5% during the 2nd quarter. Nisa Investment Advisors LLC now owns 3,684 shares of the company's stock valued at $341,000 after purchasing an additional 126 shares during the last quarter. Finally, Envestnet Asset Management Inc. raised its position in Credo Technology Group by 17.4% during the 2nd quarter. Envestnet Asset Management Inc. now owns 75,869 shares of the company's stock valued at $7,025,000 after purchasing an additional 11,233 shares during the last quarter. Institutional investors own 80.46% of the company's stock.

Credo Technology Group Trading Up 1.7%

The firm has a market cap of $20.63 billion, a PE ratio of 100.19 and a beta of 2.67. The firm has a fifty day simple moving average of $133.78 and a two-hundred day simple moving average of $143.60.

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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