Credo Technology Group (NASDAQ:CRDO) Trading Up 8.3% - Still a Buy?

Key Points

• Credo Technology Group shares rose 8.3% to $268.16 in mid-day trading, giving the company a market capitalization of approximately $50.01 billion.
• Recent quarterly results exceeded expectations, with EPS of $1.16 versus the $1.02 consensus estimate and revenue of $437 million, up 157% year over year.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and a $266.17 price target, while insiders have sold roughly $101 million of shares over the past three months.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price was up 8.3% during mid-day trading on Wednesday . The stock traded as high as $277.23 and last traded at $268.16. Approximately 5,196,905 shares traded hands during trading, a decline of 30% from the average daily volume of 7,450,487 shares. The stock had previously closed at $247.69.

Analyst Upgrades and Downgrades

CRDO has been the subject of several recent analyst reports. JPMorgan Chase & Co. raised their target price on Credo Technology Group from $230.00 to $250.00 and gave the company an "overweight" rating in a research note on Tuesday, June 2nd. Roth Capital boosted their price target on Credo Technology Group from $200.00 to $300.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. Rosenblatt Securities increased their price target on Credo Technology Group from $175.00 to $215.00 and gave the company a "neutral" rating in a report on Tuesday, June 2nd. Susquehanna raised their price objective on Credo Technology Group from $235.00 to $250.00 and gave the company a "positive" rating in a research note on Tuesday, July 21st. Finally, Jefferies Financial Group lifted their price objective on Credo Technology Group from $225.00 to $270.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $266.17.

Credo Technology Group Stock Up 8.3%

The firm has a market capitalization of $50.01 billion, a price-to-earnings ratio of 108.13, a P/E/G ratio of 1.10 and a beta of 3.23. The stock has a 50 day moving average of $238.08 and a 200 day moving average of $176.08.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results on Monday, June 1st. The company reported $1.16 EPS for the quarter, topping the consensus estimate of $1.02 by $0.14. The company had revenue of $437.00 million during the quarter, compared to analyst estimates of $431.80 million. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The business's revenue was up 157.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.20 EPS. Analysts predict that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current year.

Insider Buying and Selling at Credo Technology Group

In other Credo Technology Group news, CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $243.06, for a total transaction of $6,684,150.00. Following the completion of the sale, the chief technology officer owned 5,882,370 shares in the company, valued at $1,429,768,852.20. The trade was a 0.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 40,000 shares of the stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $249.48, for a total transaction of $9,979,200.00. Following the sale, the chief financial officer directly owned 501,873 shares in the company, valued at $125,207,276.04. This trade represents a 7.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 435,076 shares of company stock worth $101,043,506. Company insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

Several institutional investors and hedge funds have recently bought and sold shares of CRDO. Reflection Asset Management acquired a new position in Credo Technology Group in the fourth quarter valued at approximately $25,000. Acumen Wealth Advisors LLC acquired a new stake in shares of Credo Technology Group during the 4th quarter worth approximately $25,000. Flagship Harbor Advisors LLC bought a new stake in shares of Credo Technology Group in the 4th quarter worth approximately $32,000. AlphaCentric Advisors LLC bought a new stake in shares of Credo Technology Group in the 1st quarter worth approximately $33,000. Finally, Van ECK Associates Corp acquired a new position in Credo Technology Group during the 4th quarter valued at approximately $37,000. Institutional investors and hedge funds own 80.46% of the company's stock.

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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