Credo Technology Group (NASDAQ:CRDO) Trading Up 11.5% - Time to Buy?

Key Points

• Credo Technology Group shares jumped 11.5% in mid-day trading, reaching an intraday high of $210.97 as volume came in above average. The move lifted the stock well above its prior close of $188.51.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $207.71. Recent calls included Barclays’ $260 target and Jefferies’ initiation with a buy rating.
• The company posted strong quarterly results, beating EPS and revenue expectations with $1.07 EPS and $407.01 million in revenue, while revenue surged 201.5% year over year. However, insiders have sold shares recently, including the CEO and CTO, even as institutional ownership remains high at 80.46%.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares were up 11.5% during mid-day trading on Monday . The stock traded as high as $210.97 and last traded at $210.22. Approximately 7,959,702 shares changed hands during trading, an increase of 12% from the average daily volume of 7,084,328 shares. The stock had previously closed at $188.51.

Analyst Ratings Changes

Several equities analysts have issued reports on CRDO shares. Barclays reaffirmed an "overweight" rating and set a $260.00 price objective on shares of Credo Technology Group in a report on Thursday, January 15th. Rosenblatt Securities increased 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. Weiss Ratings cut shares of 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 target price on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Finally, Jefferies Financial Group assumed coverage on shares of Credo Technology Group in a research report on Monday, April 13th. They issued a "buy" rating and a $175.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $207.71.

Credo Technology Group Stock Up 11.5%

The stock has a market capitalization of $38.78 billion, a price-to-earnings ratio of 116.79 and a beta of 3.17. The company's 50-day moving average is $130.21 and its 200-day moving average is $140.68.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings data on Monday, March 2nd. The company reported $1.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.78 by $0.29. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. The firm had revenue of $407.01 million during the quarter, compared to analysts' expectations of $385.94 million. During the same period last year, the business earned $0.25 earnings per share. Credo Technology Group's revenue was up 201.5% compared to the same quarter last year. Sell-side analysts anticipate that Credo Technology Group Holding Ltd. will post 2.36 EPS for the current year.

Insider Activity

In other Credo Technology Group news, CEO William Joseph Brennan sold 50,000 shares of the stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $117.68, for a total transaction of $5,884,000.00. Following the completion of the transaction, the chief executive officer owned 1,782,502 shares of the company's stock, valued at $209,764,835.36. This trade represents a 2.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $117.60, for a total transaction of $3,234,000.00. Following the transaction, the chief technology officer directly owned 6,272,370 shares of the company's stock, valued at approximately $737,630,712. This trade represents a 0.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 386,608 shares of company stock valued at $50,371,351. 11.84% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of CRDO. Corient Private Wealth LLC boosted its stake in Credo Technology Group by 239,024.5% during the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company's stock worth $517,835,000 after buying an additional 3,597,318 shares during the period. Amundi boosted its stake in shares of Credo Technology Group by 28,478.2% in the fourth quarter. Amundi now owns 1,559,796 shares of the company's stock valued at $224,439,000 after purchasing an additional 1,554,338 shares during the period. Janus Henderson Group PLC boosted its stake in shares of Credo Technology Group by 841.9% in the fourth quarter. Janus Henderson Group PLC now owns 1,591,348 shares of the company's stock valued at $228,979,000 after purchasing an additional 1,422,391 shares during the period. Bank of America Corp DE boosted its stake in shares of Credo Technology Group by 161.5% in the third quarter. Bank of America Corp DE now owns 2,278,073 shares of the company's stock valued at $331,710,000 after purchasing an additional 1,406,752 shares during the period. Finally, Rafferty Asset Management LLC purchased a new position in shares of Credo Technology Group in the third quarter valued at approximately $183,553,000. Hedge funds and other institutional investors own 80.46% of the company's stock.

Credo Technology Group Company Profile

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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