Credo Technology Group (NASDAQ:CRDO) Trading Up 6.2% - Still a Buy?

Key Points

• CRDO shares rose 6.2% on Friday, trading as high as $240.81 and ending near $236, with volume slightly above average as investors continued to push the stock toward its highs.
• Growth catalysts remain strong after Credo completed its acquisition of DustPhotonics, which should expand its optical and active electrical cable offerings and deepen exposure to hyperscaler and AI data-center spending.
• Wall Street stays bullish, but valuation is rich: analysts still rate the stock a Buy on average, yet some commentary warns the shares may be stretched near 52-week highs ahead of earnings expectations for about $1.03 EPS on $430 million in revenue.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price was up 6.2% during trading on Friday . The stock traded as high as $240.81 and last traded at $236.03. Approximately 7,517,256 shares traded hands during trading, an increase of 6% from the average daily volume of 7,058,511 shares. The stock had previously closed at $222.35.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Credo completed its acquisition of DustPhotonics, a deal that should broaden its optical and active electrical cable offerings and increase its exposure to hyperscaler and AI data-center spending. Credo Completes Acquisition of DustPhotonics
• Positive Sentiment: Analysts remain generally bullish, with brokerage consensus still rating CRDO as a “Buy,” reflecting confidence in its growth outlook. Credo Technology Group Holding Ltd. NASDAQ: CRDO Receives Consensus Recommendation of "Buy" from Brokerages
• Positive Sentiment: Market commentary continues to frame Credo as an AI infrastructure winner, with its high-speed connectivity products benefiting from rising demand for enterprise AI factories and hyperscale data-center buildouts. Credo Technology (CRDO) Enters a Partnership to Build Enterprise AI Factories
• Neutral Sentiment: Several previews ahead of fiscal Q4 earnings note strong expectations, including consensus for about $1.03 in EPS on roughly $430 million in revenue, which suggests investors are watching closely for another upside surprise. Credo Technology Before Q4 Earnings: Should Investors Buy the Stock?
• Neutral Sentiment: Some recent articles suggest the stock is already stretched after a strong run and is trading near its 52-week high, which could limit upside if earnings or guidance disappoint. Credo Technology Nearing 52-Week High: Buy, Sell or Hold?

Analysts Set New Price Targets

Several equities analysts recently commented on CRDO shares. Weiss Ratings raised shares of Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday. Jefferies Financial Group started coverage on shares of Credo Technology Group in a research note on Monday, April 13th. They set a "buy" rating and a $175.00 price objective for the company. Mizuho reduced their price objective on shares of Credo Technology Group from $225.00 to $200.00 and set an "outperform" rating for the company in a research note on Tuesday, March 3rd. Rosenblatt Securities boosted their price objective on shares of Credo Technology Group from $125.00 to $175.00 and gave the company a "neutral" rating in a research note on Wednesday, April 15th. Finally, Rothschild & Co Redburn began coverage on shares of Credo Technology Group in a research note on Friday, May 1st. They set a "buy" rating and a $206.00 price objective for the company. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $210.65.

Credo Technology Group Stock Performance

The firm has a market cap of $43.54 billion, a PE ratio of 131.13 and a beta of 3.17. The stock's 50 day simple moving average is $155.48 and its 200 day simple moving average is $144.34.

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, topping analysts' consensus estimates 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 business had revenue of $407.01 million during the quarter, compared to analysts' expectations of $385.94 million. During the same quarter in the previous year, the company earned $0.25 EPS. The business's quarterly revenue was up 201.5% compared to the same quarter last year. As a group, analysts anticipate that Credo Technology Group Holding Ltd. will post 2.36 earnings per share for the current year.

Insider Buying and Selling

In other news, CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction that occurred on 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 completion of the sale, the chief technology officer directly owned 6,272,370 shares in the company, valued at approximately $737,630,712. The trade was a 0.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO William Joseph Brennan sold 50,000 shares of the business's stock in a transaction that occurred on 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 sale, the chief executive officer owned 1,782,502 shares of the company's stock, valued at approximately $209,764,835.36. The trade was a 2.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 386,608 shares of company stock valued at $50,371,351. Corporate insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

A number of hedge funds have recently made changes to their positions in CRDO. NewEdge Advisors LLC lifted its holdings in shares of Credo Technology Group by 128.4% in the 1st quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock worth $284,000 after acquiring an additional 3,972 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Credo Technology Group by 63.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock worth $61,235,000 after acquiring an additional 589,151 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Credo Technology Group by 2.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company's stock worth $12,480,000 after acquiring an additional 7,107 shares during the last quarter. CW Advisors LLC bought a new stake in shares of Credo Technology Group in the 2nd quarter worth approximately $288,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Credo Technology Group by 198.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock worth $46,000 after acquiring an additional 333 shares during the last quarter. 80.46% of the stock is currently owned by 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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