Credo Technology Group (NASDAQ:CRDO) Trading 2.9% Higher - Should You Buy?

Key Points

• Credo Technology Group shares rose 2.9% to $206.99, with approximately 6.4 million shares traded. The company has a $38.6 billion market capitalization and trades at a P/E ratio of 83.46.
• Wall Street remains bullish, with a consensus “Buy” rating and an average price target of $266.17; several firms recently raised their targets to $250–$260.
• Credo reported a strong quarter, beating EPS and revenue estimates while revenue surged 157% year over year. However, insiders sold more than $72.8 million of stock over the past 90 days, while institutional investors own 80.46% of the company.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded up 2.9% during trading on Friday . The stock traded as high as $216.99 and last traded at $206.99. Approximately 6,402,688 shares changed hands during trading, a decline of 16% from the average session volume of 7,615,182 shares. The stock had previously closed at $201.08.

Wall Street Analyst Weigh In

CRDO has been the topic of several recent research reports. JPMorgan Chase & Co. lifted their price target on shares of Credo Technology Group from $230.00 to $250.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 2nd. TD Cowen raised their price objective on Credo Technology Group from $240.00 to $260.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. Rothschild & Co Redburn began coverage on Credo Technology Group in a report on Friday, May 1st. They issued a "buy" rating and a $206.00 target price on the stock. The Goldman Sachs Group reaffirmed a "buy" rating and set a $250.00 target price on shares of Credo Technology Group in a research report on Tuesday, June 2nd. Finally, Susquehanna increased their price target on Credo Technology Group from $235.00 to $250.00 and gave the company a "positive" rating in a research report on Tuesday, July 21st. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $266.17.

Credo Technology Group Trading Up 2.9%

The stock has a market capitalization of $38.60 billion, a PE ratio of 83.46, a PEG ratio of 0.81 and a beta of 3.20. The firm's 50-day simple moving average is $236.83 and its two-hundred day simple moving average is $171.59.

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

Insider Activity at Credo Technology Group

In related news, CEO William Joseph Brennan sold 54,984 shares of the stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $218.57, for a total value of $12,017,852.88. Following the completion of the sale, the chief executive officer directly owned 367,327 shares of the company's stock, valued at approximately $80,286,662.39. This represents a 13.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Daniel W. Fleming sold 40,000 shares of Credo Technology Group stock in a transaction dated 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 transaction, the chief financial officer directly owned 501,873 shares in the company, valued at approximately $125,207,276.04. This trade represents a 7.38% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 302,162 shares of company stock valued at $72,810,546. Company insiders own 11.84% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in CRDO. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Credo Technology Group by 9.4% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 271,067 shares of the company's stock valued at $39,004,000 after buying an additional 23,332 shares during the last quarter. FengHe Fund Management Pte. Ltd. raised its position in Credo Technology Group by 5.7% during the fourth quarter. FengHe Fund Management Pte. Ltd. now owns 162,269 shares of the company's stock valued at $23,349,000 after acquiring an additional 8,769 shares in the last quarter. M&T Bank Corp lifted its stake in Credo Technology Group by 428.8% in the fourth quarter. M&T Bank Corp now owns 13,427 shares of the company's stock valued at $1,932,000 after acquiring an additional 10,888 shares during the last quarter. Teacher Retirement System of Texas lifted its stake in Credo Technology Group by 486.2% in the fourth quarter. Teacher Retirement System of Texas now owns 239,721 shares of the company's stock valued at $34,493,000 after acquiring an additional 198,826 shares during the last quarter. Finally, TimesSquare Capital Management LLC grew its position in Credo Technology Group by 5.5% in the fourth quarter. TimesSquare Capital Management LLC now owns 264,181 shares of the company's stock worth $38,013,000 after acquiring an additional 13,881 shares in the last quarter. 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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