Credo Technology Group (NASDAQ:CRDO) Trading Up 5.7% - Time to Buy?

Key Points

• Credo Technology Group shares rose 5.7% in Thursday trading, with the stock reaching an intraday high of $195.70 as investors continued to bid up the name amid strong AI-related momentum.
• Sentiment was boosted by a Zacks upgrade from hold to strong-buy and a partnership with Rebellions to integrate Credo’s ZeroFlap cables into RebelPOD, underscoring its role in AI data-center connectivity.
• The company has also posted strong fundamental results, including fiscal-quarter EPS of $1.07 versus $0.78 expected and revenue growth of 201.5% year over year, while Wall Street’s consensus rating remains Buy with an average price target of $207.71.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price was up 5.7% during mid-day trading on Thursday . The stock traded as high as $195.70 and last traded at $193.39. Approximately 6,688,027 shares traded hands during mid-day trading, a decline of 5% from the average daily volume of 7,063,379 shares. The stock had previously closed at $182.98.

Key Stories Impacting Credo Technology Group

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Credo announced a partnership with Rebellions to integrate its ZeroFlap cables into RebelPOD, a move aimed at improving efficiency in enterprise AI factories and expanding Credo’s role in AI data-center connectivity. Article: AI Factory Partnership With Rebellions Sends Credo's Shares Up 8%
• Positive Sentiment: Zacks upgraded Credo from hold to strong-buy, reinforcing bullish sentiment around the stock after its recent pullback. Article: Credo Technology Group was upgraded by Zacks Research from "hold" to "strong-buy".
• Positive Sentiment: Multiple bullish articles described Credo as benefiting from the AI boom, with investors viewing it as a high-upside semiconductor and connectivity play tied to growing AI data-center spending. Article: Bull of the Day: Credo Technology Group (CRDO)
• Positive Sentiment: Recent analyst and market commentary also framed CRDO as one of the better AI connectivity stocks, citing growth from active electrical cables, new product families, and the DustPhotonics deal. Article: CRDO vs. COHR: Which AI Connectivity Stock Is the Better Buy?
• Neutral Sentiment: Credo also announced upcoming investor conference presentations, which may help keep the stock in focus but do not by themselves change the earnings outlook. Article: Credo to Present at Upcoming Investor Conferences
• Neutral Sentiment: One Seeking Alpha article took the opposite view, calling the recent reversal a warning sign, but this appears to be a minority bearish take amid otherwise strong momentum. Article: Credo: This Untimely Reversal Is A Big Warning (Rating Downgrade)

Wall Street Analysts Forecast Growth

Several analysts have issued reports on CRDO shares. Susquehanna dropped their target price on Credo Technology Group from $230.00 to $170.00 and set a "positive" rating for the company in a report on Tuesday, March 3rd. Roth Mkm dropped their target price on Credo Technology Group from $250.00 to $200.00 and set a "buy" rating for the company in a report on Tuesday, February 10th. The Goldman Sachs Group upped their target price on Credo Technology Group from $150.00 to $170.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Zacks Research upgraded Credo Technology Group from a "hold" rating to a "strong-buy" rating in a report on Tuesday. Finally, Craig Hallum reiterated a "buy" rating and set a $200.00 price target on shares of Credo Technology Group in a report on Tuesday, March 3rd. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average target price of $207.71.

Credo Technology Group Trading Up 5.7%

The firm has a market capitalization of $35.67 billion, a PE ratio of 107.44 and a beta of 3.17. The business has a fifty day moving average price of $143.14 and a two-hundred day moving average price of $142.48.

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

Insider Transactions at Credo Technology Group

In related news, CEO William Joseph Brennan sold 50,000 shares of the firm's stock in a transaction dated Wednesday, March 11th. The stock was 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 directly owned 1,782,502 shares in the company, valued at $209,764,835.36. This trade represents a 2.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CTO Chi Fung Cheng sold 27,500 shares of the firm's stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $117.60, for a total value of $3,234,000.00. Following the transaction, the chief technology officer owned 6,272,370 shares of the company's stock, valued at $737,630,712. This trade represents a 0.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 386,608 shares of company stock valued at $50,371,351 over the last 90 days. 11.84% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in Credo Technology Group by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 16,585,229 shares of the company's stock valued at $2,386,449,000 after acquiring an additional 59,849 shares during the period. JPMorgan Chase & Co. boosted its holdings in Credo Technology Group by 18.3% during the 3rd quarter. JPMorgan Chase & Co. now owns 7,699,456 shares of the company's stock valued at $1,121,118,000 after acquiring an additional 1,190,522 shares during the period. State Street Corp boosted its holdings in Credo Technology Group by 23.4% during the 4th quarter. State Street Corp now owns 4,486,320 shares of the company's stock valued at $645,537,000 after acquiring an additional 849,654 shares during the period. Geode Capital Management LLC boosted its holdings in Credo Technology Group by 5.0% during the 4th quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company's stock valued at $555,117,000 after acquiring an additional 184,676 shares during the period. Finally, Corient Private Wealth LLC boosted its holdings in Credo Technology Group by 239,024.5% during the 4th quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company's stock valued at $517,835,000 after acquiring an additional 3,597,318 shares during the period. 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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