Credo Technology Group (NASDAQ:CRDO) Trading 8.3% Higher - Should You Buy?

Key Points

• Credo Technology Group shares jumped 8.3% in midday trading, reaching as high as $187.70 after closing at $168.99 the previous session, with trading volume running slightly above average.
• Analyst sentiment remains broadly positive: the stock has an average “Moderate Buy” rating and a consensus target price of $207.71, though there is some split opinion with a mix of buy, hold, and neutral ratings.
• Recent fundamentals were strong, as the company beat quarterly earnings and revenue expectations, with revenue up 201.5% year over year; however, insiders have also been selling shares in recent months.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded up 8.3% during mid-day trading on Wednesday . The stock traded as high as $187.70 and last traded at $182.98. 7,381,032 shares traded hands during trading, an increase of 4% from the average session volume of 7,066,015 shares. The stock had previously closed at $168.99.

Wall Street Analyst Weigh In

CRDO has been the subject of a number of analyst reports. Craig Hallum reaffirmed a "buy" rating and issued a $200.00 target price on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Weiss Ratings downgraded shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, April 24th. Rosenblatt Securities raised their target price on shares of Credo Technology Group from $125.00 to $175.00 and gave the company a "neutral" rating in a research report on Wednesday, April 15th. Stifel Nicolaus set a $200.00 target price on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Finally, Susquehanna decreased their target price on shares of Credo Technology Group from $230.00 to $170.00 and set a "positive" rating for the company in a research report on Tuesday, March 3rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Credo Technology Group presently has an average rating of "Moderate Buy" and an average target price of $207.71.

Credo Technology Group Stock Up 8.3%

The stock has a market cap of $33.75 billion, a price-to-earnings ratio of 101.66 and a beta of 3.17. The business's 50 day simple moving average is $141.80 and its 200 day simple moving average is $142.37.

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

Insider Activity

In other Credo Technology Group news, insider James Laufman sold 10,000 shares of the stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $164.41, for a total value 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO William Joseph Brennan sold 6,149 shares of the stock in a transaction on Sunday, April 5th. The shares were sold at an average price of $101.45, for a total transaction of $623,816.05. Following the completion of the sale, the chief executive officer owned 222,311 shares of the company's stock, valued at approximately $22,553,450.95. This represents a 2.69% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 386,608 shares of company stock worth $50,371,351. 11.84% of the stock is owned by insiders.

Institutional Trading of Credo Technology Group

A number of hedge funds have recently modified their holdings of the stock. Savant Capital LLC lifted its stake in shares of Credo Technology Group by 0.7% during the 3rd quarter. Savant Capital LLC now owns 9,914 shares of the company's stock worth $1,444,000 after buying an additional 68 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Credo Technology Group by 16.2% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 552 shares of the company's stock worth $80,000 after buying an additional 77 shares during the last quarter. Illinois Municipal Retirement Fund lifted its stake in shares of Credo Technology Group by 0.6% during the 3rd quarter. Illinois Municipal Retirement Fund now owns 15,783 shares of the company's stock worth $2,298,000 after buying an additional 91 shares during the last quarter. QRG Capital Management Inc. lifted its stake in shares of Credo Technology Group by 1.7% during the 1st quarter. QRG Capital Management Inc. now owns 5,402 shares of the company's stock worth $507,000 after buying an additional 91 shares during the last quarter. Finally, Bank of Nova Scotia lifted its stake in shares of Credo Technology Group by 1.6% during the 1st quarter. Bank of Nova Scotia now owns 6,026 shares of the company's stock worth $566,000 after buying an additional 92 shares during 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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