Credo Technology Group (NASDAQ:CRDO) Stock Price Up 8.1% - Here's Why

Key Points

• Credo Technology Group shares rose 8.1% on Tuesday, trading as high as $171.64 on volume above average, after closing previously at $156.27.
• The company’s latest earnings beat expectations, with EPS of $1.07 vs. $0.78 expected and revenue of $407.01 million, up 201.5% from a year earlier.
• Wall Street remains mostly bullish, with a consensus “Moderate Buy” rating and an average price target of $207.71, even as some analysts adjusted targets and one insider sale was disclosed.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded up 8.1% during mid-day trading on Tuesday . The company traded as high as $171.64 and last traded at $168.99. 8,214,064 shares changed hands during trading, an increase of 16% from the average session volume of 7,062,162 shares. The stock had previously closed at $156.27.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Weiss Ratings downgraded Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, April 24th. Stifel Nicolaus set a $200.00 price target on Credo Technology Group in a research report on Tuesday, March 3rd. Needham & Company LLC reissued a "buy" rating and set a $220.00 target price on shares of Credo Technology Group in a research note on Wednesday, April 15th. Mizuho lowered their target price on shares of Credo Technology Group from $225.00 to $200.00 and set an "outperform" rating on the stock in a research note on Tuesday, March 3rd. Finally, Rosenblatt Securities increased their target price on shares of Credo Technology Group from $125.00 to $175.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 15th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Credo Technology Group presently has a consensus rating of "Moderate Buy" and a consensus price target of $207.71.

Credo Technology Group Stock Performance

The stock has a market capitalization of $31.17 billion, a PE ratio of 93.88 and a beta of 3.17. The stock's 50 day moving average is $140.62 and its two-hundred day moving average is $142.39.

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

Insider Buying and Selling at Credo Technology Group

In other news, insider James Laufman sold 10,000 shares of the firm's stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $164.41, for a total transaction of $1,644,100.00. Following the completion of the sale, the insider owned 198,609 shares in the company, valued at $32,653,305.69. This trade represents a 4.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO William Joseph Brennan sold 6,149 shares of the firm's stock in a transaction that occurred 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 represents a 2.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 386,608 shares of company stock worth $50,371,351 in the last quarter. Insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Several institutional investors have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC increased 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 worth $284,000 after buying an additional 3,972 shares during the period. Goldman Sachs Group Inc. increased its stake in shares of Credo Technology Group by 63.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock worth $61,235,000 after buying an additional 589,151 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Credo Technology Group by 2.3% during the first 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 buying an additional 7,107 shares during the period. CW Advisors LLC purchased a new stake in shares of Credo Technology Group during the second quarter worth approximately $288,000. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Credo Technology Group by 198.2% during the second quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock worth $46,000 after buying an additional 333 shares during the period. Institutional investors and hedge funds 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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