Credo Technology Group (NASDAQ:CRDO) Trading Up 5.6% - Here's What Happened

Key Points

• Price action: Credo shares jumped 5.6% on Monday to $115.98 with about 7.13 million shares traded, slightly below average session volume.
• Quarterly beat: The company reported EPS of $1.07 vs. $0.78 expected and revenue of $407.0M (vs. $385.9M), with revenue up 201.5% year‑over‑year and a 31.8% net margin.
• Analyst and ownership backdrop: Analysts rate the stock an average "Buy" with a mean target of $206.33, but insiders have sold material shares recently and the stock trades below its 50‑ and 200‑day moving averages.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price traded up 5.6% during mid-day trading on Monday . The company traded as high as $116.13 and last traded at $115.98. 7,134,978 shares changed hands during trading, a decline of 2% from the average session volume of 7,261,156 shares. The stock had previously closed at $109.83.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on CRDO shares. Bank of America increased their price objective on Credo Technology Group from $165.00 to $240.00 and gave the company a "buy" rating in a research note on Tuesday, December 2nd. Craig Hallum restated a "buy" rating and set a $200.00 target price on shares of Credo Technology Group in a research note on Tuesday, March 3rd. Needham & Company LLC reiterated a "buy" rating and set a $220.00 price target on shares of Credo Technology Group in a report on Tuesday, March 3rd. Susquehanna decreased their price objective 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. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Credo Technology Group in a report on Monday, December 29th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $206.33.

Credo Technology Group Stock Up 5.6%

The company has a market cap of $21.39 billion, a price-to-earnings ratio of 64.43 and a beta of 2.67. The firm has a 50-day simple moving average of $129.70 and a 200 day simple moving average of $143.41.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings results on Monday, March 2nd. The company reported $1.07 EPS for the quarter, beating 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 the consensus estimate of $385.94 million. During the same quarter in the prior year, the firm earned $0.25 EPS. Credo Technology Group's revenue for the quarter was up 201.5% on a year-over-year basis. As a group, research analysts expect that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Insider Activity

In related news, CTO Chi Fung Cheng sold 55,000 shares of the stock in a transaction on Monday, December 29th. The stock was sold at an average price of $143.41, for a total transaction of $7,887,550.00. Following the completion of the sale, the chief technology officer directly owned 6,448,961 shares of the company's stock, valued at $924,845,497.01. This trade represents a 0.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO William Joseph Brennan sold 50,000 shares of the company's stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $153.16, for a total transaction of $7,658,000.00. Following the transaction, the chief executive officer owned 1,892,502 shares of the company's stock, valued at approximately $289,855,606.32. The trade was a 2.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 861,101 shares of company stock valued at $126,611,953. Company insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

Several institutional investors have recently made changes to their positions in CRDO. Vanguard Group Inc. boosted its holdings in Credo Technology Group by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 16,585,229 shares of the company's stock worth $2,386,449,000 after buying an additional 59,849 shares in the last quarter. JPMorgan Chase & Co. increased its stake in Credo Technology Group by 18.3% in the 3rd quarter. JPMorgan Chase & Co. now owns 7,699,456 shares of the company's stock valued at $1,121,118,000 after purchasing an additional 1,190,522 shares in the last quarter. State Street Corp raised its holdings in Credo Technology Group by 23.4% during the fourth quarter. State Street Corp now owns 4,486,320 shares of the company's stock worth $645,537,000 after purchasing an additional 849,654 shares during the last quarter. Geode Capital Management LLC grew its holdings in Credo Technology Group by 5.0% in the fourth quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company's stock valued at $555,117,000 after purchasing an additional 184,676 shares during the last quarter. Finally, Corient Private Wealth LLC increased its position 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 valued at $517,835,000 after buying an additional 3,597,318 shares in the last quarter. 80.46% of the stock is currently owned by hedge funds and other institutional investors.

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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