Credo Technology Group (NASDAQ:CRDO) Trading 4.8% Higher - Time to Buy?

Key Points

• Credo Technology Group's stock increased by 4.8% and hit a high of $176.70, with a trading volume of over 5.3 million shares.
• Multiple analysts have raised their price targets for the stock, with ratings ranging from "buy" to "outperform," reflecting a growing confidence in the company.
• In its latest quarterly report, Credo Technology posted a revenue of $223.07 million, significantly exceeding estimates, even though its earnings per share slightly missed expectations.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded up 4.8% on Thursday . The stock traded as high as $176.70 and last traded at $172.31. 5,326,269 shares were traded during trading, an increase of 2% from the average session volume of 5,243,487 shares. The stock had previously closed at $164.44.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Mizuho increased their price objective on Credo Technology Group from $135.00 to $155.00 and gave the company an "outperform" rating in a report on Thursday, September 4th. Wall Street Zen raised Credo Technology Group from a "hold" rating to a "buy" rating in a report on Friday, September 5th. William Blair began coverage on Credo Technology Group in a report on Thursday. They issued an "outperform" rating for the company. Roth Capital raised their price target on Credo Technology Group from $95.00 to $160.00 and gave the stock a "buy" rating in a report on Thursday, September 4th. Finally, Needham & Company LLC raised their price target on Credo Technology Group from $85.00 to $150.00 and gave the stock a "buy" rating in a report on Thursday, September 4th. Two equities research analysts have rated the stock with a Strong Buy rating and thirteen have assigned a Buy rating to the stock. According to MarketBeat, the stock has an average rating of "Buy" and an average target price of $126.27.

Credo Technology Group Price Performance

The company has a market cap of $29.81 billion, a P/E ratio of 257.18 and a beta of 2.59. The company has a 50 day moving average of $120.09 and a 200-day moving average of $79.24.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its quarterly earnings data on Wednesday, September 3rd. The company reported $0.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.36 by ($0.02). The business had revenue of $223.07 million for the quarter, compared to the consensus estimate of $190.63 million. Credo Technology Group had a net margin of 20.85% and a return on equity of 19.02%. Credo Technology Group's quarterly revenue was up 273.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.04 EPS. Credo Technology Group has set its Q2 2026 guidance at EPS. Research analysts anticipate that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Insider Buying and Selling at Credo Technology Group

In other Credo Technology Group news, insider James Laufman sold 10,000 shares of the firm's stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $140.00, for a total transaction of $1,400,000.00. Following the sale, the insider owned 232,284 shares in the company, valued at $32,519,760. This trade represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Chi Fung Cheng sold 55,000 shares of the firm's stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $163.98, for a total value of $9,018,900.00. Following the sale, the chief technology officer owned 6,998,961 shares in the company, valued at $1,147,689,624.78. The trade was a 0.78% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 808,147 shares of company stock valued at $86,606,047. 11.84% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of CRDO. JPMorgan Chase & Co. increased its holdings in shares of Credo Technology Group by 36.5% in the second quarter. JPMorgan Chase & Co. now owns 6,508,934 shares of the company's stock worth $602,662,000 after buying an additional 1,739,844 shares during the period. Nuveen LLC purchased a new position in shares of Credo Technology Group in the first quarter worth about $52,636,000. Alliancebernstein L.P. increased its holdings in shares of Credo Technology Group by 66.0% in the second quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company's stock worth $283,778,000 after buying an additional 1,218,504 shares during the period. 1832 Asset Management L.P. purchased a new position in shares of Credo Technology Group in the second quarter worth about $82,479,000. Finally, Swedbank AB grew its stake in shares of Credo Technology Group by 29.5% in the first quarter. Swedbank AB now owns 3,219,125 shares of the company's stock worth $129,280,000 after purchasing an additional 733,811 shares during the last quarter. Hedge funds and other institutional investors own 80.46% of the company's stock.

About Credo Technology Group

Credo Technology Group Holding Ltd provides various high-speed connectivity Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Taiwan, Mainland China, Hong Kong, and internationally. Its products include HiWire active electrical cables, optical digital signal processors, low-power line card PHY, serializer/deserializer (SerDes) chiplets, and SerDes IP, as well as integrated circuits, active electrical cables.

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