Credo Technology Group (NASDAQ:CRDO) Trading 8.5% Higher - Time to Buy?

Key Points

• Credo Technology Group's stock surged 8.5% during trading, reaching a high of $149.05, after closing at $137.20 previously.
• Multiple analysts have set new price targets for Credo Technology Group, with recommendations ranging from $150 to $170, reinforcing a consensus "Buy" rating.
• The company's recent earnings report indicated a significant revenue increase of 273.6% year-over-year, although earnings per share (EPS) slightly missed analysts' expectations.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded up 8.5% during trading on Wednesday . The company traded as high as $149.05 and last traded at $148.87. 6,475,021 shares were traded during trading, an increase of 22% from the average session volume of 5,322,551 shares. The stock had previously closed at $137.20.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. TD Cowen started coverage on shares of Credo Technology Group in a report on Wednesday, October 1st. They set a "buy" rating and a $170.00 price target for the company. Wall Street Zen raised shares of Credo Technology Group from a "hold" rating to a "buy" rating in a research report on Sunday, September 28th. Needham & Company LLC boosted their target price on shares of Credo Technology Group from $85.00 to $150.00 and gave the stock a "buy" rating in a research report on Thursday, September 4th. Stifel Nicolaus set a $160.00 target price on shares of Credo Technology Group in a research report on Wednesday, October 1st. Finally, Mizuho lifted their price target on shares of Credo Technology Group from $135.00 to $155.00 and gave the stock an "outperform" rating in a research note on Thursday, September 4th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $128.55.

Credo Technology Group Trading Up 8.5%

The stock's 50-day moving average is $134.55 and its 200-day moving average is $89.70. The stock has a market cap of $25.75 billion, a P/E ratio of 222.19 and a beta of 2.60.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its earnings results on Wednesday, September 3rd. The company reported $0.34 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.36 by ($0.02). The company had revenue of $223.07 million during 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%. The business's quarterly revenue was up 273.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.04 EPS. Credo Technology Group has set its Q2 2026 guidance at EPS. On average, equities analysts forecast that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Insider Activity at Credo Technology Group

In other Credo Technology Group news, CTO Chi Fung Cheng sold 55,000 shares of the company's stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $146.21, for a total value of $8,041,550.00. Following the completion of the sale, the chief technology officer directly owned 7,053,961 shares of the company's stock, valued at approximately $1,031,359,637.81. This represents a 0.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Yat Tung Lam sold 80,000 shares of the company's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $143.53, for a total transaction of $11,482,400.00. Following the completion of the sale, the chief operating officer directly owned 920,000 shares of the company's stock, valued at $132,047,600. The trade was a 8.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 878,915 shares of company stock worth $114,552,445 in the last 90 days. Corporate insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

A number of hedge funds have recently bought and sold shares of CRDO. Operose Advisors LLC raised its position in Credo Technology Group by 69.2% during the first quarter. Operose Advisors LLC now owns 616 shares of the company's stock valued at $25,000 after acquiring an additional 252 shares in the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in Credo Technology Group during the first quarter valued at approximately $25,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in Credo Technology Group during the first quarter valued at approximately $27,000. Pinpoint Asset Management Singapore Pte. Ltd. bought a new position in shares of Credo Technology Group in the second quarter valued at approximately $27,000. Finally, Harbour Investments Inc. acquired a new stake in shares of Credo Technology Group in the first quarter worth $29,000. 80.46% of the stock is owned by hedge funds and other institutional investors.

Credo Technology Group Company Profile

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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