Credo Technology Group Sees Unusually High Options Volume (NASDAQ:CRDO)

Key Points

• Credo Technology Group saw unusually high options activity, with investors buying 30,831 call options on Tuesday, about 15% above its normal daily volume.
• The stock jumped sharply, rising $9.79 to $232.06 on heavy trading volume, after the company recently posted better-than-expected quarterly results with revenue up 157% year over year.
• Analyst sentiment remains bullish, with several firms reiterating or raising price targets; the consensus price target is $248.41 and the stock carries a Moderate Buy rating.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) was the target of unusually large options trading on Tuesday. Stock investors purchased 30,831 call options on the stock. This is an increase of 15% compared to the typical daily volume of 26,836 call options.

Insider Transactions at Credo Technology Group

In other news, CEO William Joseph Brennan sold 6,149 shares of the stock in a transaction that occurred on Sunday, April 5th. The shares were sold at an average price of $101.45, for a total transaction of $623,816.05. Following the transaction, the chief executive officer directly owned 222,311 shares in the company, valued at approximately $22,553,450.95. This trade represents a 2.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider James Laufman sold 10,000 shares of the business's stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $164.41, for a total value of $1,644,100.00. Following the completion of the transaction, the insider directly owned 198,609 shares of the company's stock, valued at approximately $32,653,305.69. This trade represents a 4.79% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 386,608 shares of company stock worth $50,371,351 over the last three months. Company insiders own 11.84% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of CRDO. NewEdge Advisors LLC increased its position in Credo Technology Group by 128.4% during the first quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock worth $284,000 after buying an additional 3,972 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Credo Technology Group by 63.0% in the first quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock valued at $61,235,000 after buying an additional 589,151 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Credo Technology Group by 2.3% during the first 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 buying an additional 7,107 shares during the last quarter. CW Advisors LLC bought a new stake in shares of Credo Technology Group during the second quarter worth approximately $288,000. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Credo Technology Group by 198.2% during the second quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock worth $46,000 after buying an additional 333 shares during the last quarter. Hedge funds and other institutional investors own 80.46% of the company's stock.

Credo Technology Group Stock Performance

Shares of CRDO stock traded up $9.79 on Tuesday, reaching $232.06. 10,584,337 shares of the company's stock traded hands, compared to its average volume of 7,349,729. Credo Technology Group has a 12-month low of $66.75 and a 12-month high of $252.70. The company has a market capitalization of $42.80 billion, a P/E ratio of 93.32, a price-to-earnings-growth ratio of 1.34 and a beta of 3.22. The business's 50 day moving average price is $172.17 and its two-hundred day moving average price is $147.79.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Monday, June 1st. The company reported $1.16 EPS for the quarter, topping analysts' consensus estimates of $1.02 by $0.14. Credo Technology Group had a return on equity of 36.99% and a net margin of 35.37%.The firm had revenue of $437.00 million during the quarter, compared to analyst estimates of $431.80 million. During the same period last year, the company posted $0.20 EPS. The business's quarterly revenue was up 157.0% compared to the same quarter last year. Research analysts predict that Credo Technology Group will post 3.93 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on CRDO shares. The Goldman Sachs Group reissued a "buy" rating and set a $250.00 price objective on shares of Credo Technology Group in a report on Tuesday, June 2nd. Roth Mkm boosted their price objective on shares of Credo Technology Group from $200.00 to $300.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Zacks Research raised shares of Credo Technology Group from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 19th. Susquehanna increased their target price on Credo Technology Group from $200.00 to $235.00 and gave the stock a "positive" rating in a research report on Tuesday, June 2nd. Finally, Stifel Nicolaus set a $250.00 price objective on shares of Credo Technology Group in a report on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $248.41.

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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