Credo Technology Group (NASDAQ:CRDO) Trading Up 13.2% - Time to Buy?

Key Points

• Credo Technology Group shares jumped 13.2% on Monday, trading as high as $271.62 after closing at $241.91 the prior session.
• Recent analyst sentiment has been very bullish, with multiple firms raising price targets and ratings; Bank of America lifted its target to $340 and the overall consensus rating remains a Buy.
• The company posted strong quarterly results, including EPS of $1.16 versus $1.02 expected and revenue of $437 million, up 157% year over year, though insiders have also sold shares in recent months.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shot up 13.2% on Monday . The stock traded as high as $271.62 and last traded at $273.7810. Approximately 1,319,894 shares were traded during mid-day trading, a decline of 83% from the average session volume of 7,811,698 shares. The stock had previously closed at $241.91.

Analyst Upgrades and Downgrades

CRDO has been the subject of a number of recent research reports. Bank of America raised their price target on Credo Technology Group from $252.00 to $340.00 and gave the stock a "buy" rating in a research note on Tuesday, June 23rd. Zacks Research raised Credo Technology Group from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 19th. Evercore assumed coverage on Credo Technology Group in a report on Monday, June 22nd. They issued an "outperform" rating and a $325.00 price objective on the stock. Roth Mkm raised their price objective on shares of Credo Technology Group from $200.00 to $300.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Finally, Mizuho boosted their target price on shares of Credo Technology Group from $260.00 to $290.00 and gave the stock an "outperform" rating in a research report on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Credo Technology Group currently has a consensus rating of "Buy" and a consensus target price of $263.11.

Credo Technology Group Stock Up 13.0%

The business has a 50-day simple moving average of $220.92 and a 200-day simple moving average of $160.57. The stock has a market cap of $50.99 billion, a P/E ratio of 110.25, a PEG ratio of 1.11 and a beta of 3.20.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its quarterly earnings data on Monday, June 1st. The company reported $1.16 earnings per share for the quarter, topping analysts' consensus estimates of $1.02 by $0.14. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The business had revenue of $437.00 million during the quarter, compared to analysts' expectations of $431.80 million. During the same period in the previous year, the company earned $0.20 earnings per share. Credo Technology Group's revenue for the quarter was up 157.0% on a year-over-year basis. On average, analysts predict that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current fiscal year.

Insider Activity at Credo Technology Group

In other Credo Technology Group news, CFO Daniel W. Fleming sold 40,000 shares of the company's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $249.48, for a total transaction of $9,979,200.00. Following the completion of the sale, the chief financial officer directly owned 501,873 shares in the company, valued at $125,207,276.04. This represents a 7.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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. Also, CEO William Joseph Brennan sold 54,984 shares of Credo Technology Group 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 transaction, the chief executive officer owned 367,327 shares in the company, valued at $80,286,662.39. The trade was a 13.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 363,372 shares of company stock valued at $76,926,125. 11.84% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Corient Private Wealth LLC grew its stake in shares of Credo Technology Group by 239,024.5% in the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company's stock worth $517,835,000 after acquiring an additional 3,597,318 shares during the last quarter. Amundi boosted its holdings in Credo Technology Group by 28,478.2% in the 4th 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 holdings in Credo Technology Group by 841.9% in the 4th 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 grew its position in Credo Technology Group by 161.5% in the 3rd quarter. Bank of America Corp DE now owns 2,278,073 shares of the company's stock worth $331,710,000 after purchasing an additional 1,406,752 shares during the last quarter. Finally, Alliancebernstein L.P. grew its position in Credo Technology Group by 66.0% in the 2nd quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company's stock worth $283,778,000 after purchasing an additional 1,218,504 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors and hedge funds.

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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