Credo Technology Group (NASDAQ:CRDO) Trading Up 2.5% - Here's Why

Key Points

• Credo Technology Group's shares increased by 2.5% to a trading price of $147.42, with a significant volume increase of 20% over the average trading session.
• A recent upgrade from research analysts includes price targets raised to as high as $165 from various firms, reflecting a generally positive outlook with a consensus rating of “Buy”.
• Despite missing earnings estimates, Credo reported a remarkable 273.6% increase in revenue compared to the same quarter last year, showcasing significant growth potential.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shot up 2.5% during trading on Monday . The company traded as high as $156.75 and last traded at $147.42. 6,382,889 shares changed hands during trading, an increase of 20% from the average session volume of 5,305,198 shares. The stock had previously closed at $143.87.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Susquehanna lifted their price objective on shares of Credo Technology Group from $115.00 to $165.00 and gave the company a "positive" rating in a report on Thursday, September 4th. Cowen reaffirmed a "buy" rating on shares of Credo Technology Group in a research report on Thursday, September 4th. Barclays upped their price target on Credo Technology Group from $85.00 to $165.00 and gave the stock an "overweight" rating in a report on Thursday, September 4th. Zacks Research upgraded Credo Technology Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 8th. Finally, Mizuho raised their price target on shares of Credo Technology Group from $135.00 to $155.00 and gave the company an "outperform" rating in a research report on Thursday, September 4th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $128.55.

Credo Technology Group Stock Up 2.5%

The firm has a 50-day simple moving average of $133.99 and a 200-day simple moving average of $89.37. The stock has a market cap of $25.50 billion, a PE ratio of 220.03 and a beta of 2.60.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings results on Wednesday, September 3rd. The company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.36 by ($0.02). The company had revenue of $223.07 million during the quarter, compared to analysts' expectations 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 revenue for the quarter was up 273.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.04 earnings per share. Credo Technology Group has set its Q2 2026 guidance at EPS. On average, research analysts expect that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current year.

Insider Activity

In other Credo Technology Group news, COO Yat Tung Lam sold 80,000 shares of the firm's stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $143.53, for a total value of $11,482,400.00. Following the completion of the transaction, the chief operating officer directly owned 920,000 shares of the company's stock, valued at $132,047,600. This trade represents a 8.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Chi Fung Cheng sold 55,000 shares of the business's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $146.21, for a total transaction of $8,041,550.00. Following the transaction, the chief technology officer owned 7,053,961 shares of the company's stock, valued at $1,031,359,637.81. This trade represents a 0.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 823,915 shares of company stock worth $106,393,195. 11.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On Credo Technology Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. GAMMA Investing LLC raised its position in shares of Credo Technology Group by 6.7% during the 3rd quarter. GAMMA Investing LLC now owns 1,891 shares of the company's stock valued at $275,000 after buying an additional 118 shares in the last quarter. Nisa Investment Advisors LLC increased its stake in Credo Technology Group by 3.5% in the 2nd quarter. Nisa Investment Advisors LLC now owns 3,684 shares of the company's stock worth $341,000 after purchasing an additional 126 shares during the period. Blue Trust Inc. lifted its position in Credo Technology Group by 3.9% in the second quarter. Blue Trust Inc. now owns 4,108 shares of the company's stock valued at $380,000 after purchasing an additional 154 shares during the last quarter. Signaturefd LLC boosted its stake in shares of Credo Technology Group by 32.4% during the second quarter. Signaturefd LLC now owns 703 shares of the company's stock valued at $65,000 after purchasing an additional 172 shares during the period. Finally, Main Management ETF Advisors LLC increased its stake in shares of Credo Technology Group by 1.7% in the second quarter. Main Management ETF Advisors LLC now owns 11,728 shares of the company's stock worth $1,086,000 after buying an additional 192 shares during the period. 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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