Credo Technology Group (NASDAQ:CRDO) Trading Up 6% - What's Next?

Key Points

• Shares jumped ~6% to $184.38 on Friday with volume about 35% below average; analysts rate the stock a "Moderate Buy" on average with a consensus target of $207.71 (Needham $220 high).
• Earnings beat expectations: latest quarter EPS $1.07 vs $0.78 est and revenue $407M vs $386M, with revenue up 201.5% year‑over‑year and a net margin around 31.8%.
• Insiders have been net sellers (359,108 shares worth ~$45.4M in the past three months) despite heavy institutional ownership (80.46%), and the shares trade at a high valuation (PE ≈ 102.4) and $34.0B market cap.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price traded up 6% on Friday . The company traded as high as $184.88 and last traded at $184.38. 4,654,295 shares were traded during trading, a decline of 35% from the average session volume of 7,186,155 shares. The stock had previously closed at $174.01.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. Jefferies Financial Group assumed coverage on Credo Technology Group in a research report on Monday, April 13th. They set a "buy" rating and a $175.00 target price on the stock. The Goldman Sachs Group upped their target price on Credo Technology Group from $150.00 to $170.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Zacks Research lowered Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Weiss Ratings lowered Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, April 24th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $220.00 target price on shares of Credo Technology Group in a research report on Wednesday, April 15th. One 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.com, Credo Technology Group currently has an average rating of "Moderate Buy" and a consensus target price of $207.71.

Credo Technology Group Trading Up 6.0%

The firm has a market capitalization of $34.01 billion, a PE ratio of 102.43 and a beta of 2.72. The business has a 50-day moving average of $125.98 and a 200 day moving average of $139.49.

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 analysts' consensus estimates of $0.78 by $0.29. The business had revenue of $407.01 million during the quarter, compared to analyst estimates of $385.94 million. Credo Technology Group had a return on equity of 29.63% and a net margin of 31.81%.Credo Technology Group's quarterly revenue was up 201.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.25 EPS. On average, sell-side analysts expect that Credo Technology Group Holding Ltd. will post 2.36 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Daniel W. Fleming sold 7,580 shares of the firm's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $152.63, for a total transaction of $1,156,935.40. Following the completion of the sale, the chief financial officer directly owned 433,678 shares of the company's stock, valued at $66,192,273.14. This trade represents a 1.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Tung Lam sold 3,180 shares of the firm's stock in a transaction on Sunday, April 5th. The shares were sold at an average price of $101.45, for a total value of $322,611.00. Following the sale, the chief operating officer directly owned 2,610,329 shares of the company's stock, valued at approximately $264,817,877.05. This represents a 0.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 359,108 shares of company stock worth $45,449,126 in the last three months. 11.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Credo Technology Group

Large investors have recently made changes to their positions in the business. Atlantic Union Bankshares Corp purchased a new stake in shares of Credo Technology Group during the 3rd quarter valued at $25,000. Crewe Advisors LLC increased its position in shares of Credo Technology Group by 163.1% during the 4th quarter. Crewe Advisors LLC now owns 171 shares of the company's stock valued at $25,000 after purchasing an additional 106 shares during the last quarter. Reflection Asset Management purchased a new stake in shares of Credo Technology Group during the 4th quarter valued at $25,000. Acumen Wealth Advisors LLC purchased a new stake in shares of Credo Technology Group during the 4th quarter valued at $25,000. Finally, First Horizon Corp purchased a new stake in shares of Credo Technology Group during the 3rd quarter valued at $26,000. 80.46% of the stock is owned by hedge funds and other institutional investors.

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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