Credo Technology Group (NASDAQ:CRDO) Issues Quarterly Earnings Results

Key Points

• Credo Technology Group exceeded quarterly expectations, reporting adjusted earnings of $1.20 per share versus the $1.17 consensus estimate and revenue of $479.0 million versus $473.3 million expected. The company posted a 35.37% net margin and 32.30% return on equity.
• Shares fell $19.56 to $206.63 during Tuesday trading, despite a predominantly bullish analyst outlook. Nineteen analysts rate the stock Strong Buy or Buy, with a consensus “Moderate Buy” rating and an average price target of $268.39.
• Institutional investors own 80.46% of the company, while insiders have sold 435,076 shares worth about $101.0 million over the past quarter. Two recent executive sales were conducted under pre-arranged Rule 10b5-1 trading plans.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) posted its earnings results on Tuesday. The company reported $1.20 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.03, FiscalAI reports. The company had revenue of $479.00 million during the quarter, compared to the consensus estimate of $473.30 million. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.

Credo Technology Group Price Performance

NASDAQ:CRDO traded down $19.56 during mid-day trading on Tuesday, reaching $206.63. The stock had a trading volume of 7,759,576 shares, compared to its average volume of 7,183,688. Credo Technology Group has a 12 month low of $86.49 and a 12 month high of $308.67. The stock has a market capitalization of $38.83 billion, a PE ratio of 83.32, a P/E/G ratio of 1.06 and a beta of 3.23. The stock has a 50-day simple moving average of $237.11 and a two-hundred day simple moving average of $187.97.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on CRDO shares. Stifel Nicolaus raised their price target on shares of Credo Technology Group from $250.00 to $350.00 and gave the stock a "buy" rating in a research report on Monday, June 22nd. TD Cowen increased their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock a "buy" rating in a research report on Tuesday, August 18th. Jefferies Financial Group raised their target price on shares of Credo Technology Group from $225.00 to $270.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Zacks Research downgraded shares of Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 3rd. Finally, Mizuho boosted their price target on Credo Technology Group from $260.00 to $290.00 and gave the company an "outperform" rating in a research note on Tuesday, June 2nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $268.39.

Insiders Place Their Bets

In other news, COO Yat Tung Lam sold 55,441 shares of the business's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the transaction, the chief operating officer owned 2,529,169 shares of the company's stock, valued at approximately $538,763,580.38. The trade was a 2.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,500 shares of the company's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $243.06, for a total value of $6,684,150.00. Following the sale, the chief technology officer owned 5,882,370 shares of the company's stock, valued at approximately $1,429,768,852.20. This represents a 0.47% 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. In the last quarter, insiders have sold 435,076 shares of company stock worth $101,043,506. 9.06% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Credo Technology Group

Hedge funds have recently made changes to their positions in the stock. State Street Corp boosted its stake in shares of Credo Technology Group by 23.4% during the fourth quarter. State Street Corp now owns 4,486,320 shares of the company's stock valued at $645,537,000 after purchasing an additional 849,654 shares in the last quarter. Alliancebernstein L.P. grew its stake in shares of Credo Technology Group by 66.0% in the second quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company's stock worth $283,778,000 after purchasing an additional 1,218,504 shares during the last quarter. Bank of America Corp DE increased its holdings in Credo Technology Group by 161.5% in the third quarter. Bank of America Corp DE now owns 2,278,073 shares of the company's stock valued at $331,710,000 after purchasing an additional 1,406,752 shares during the period. Wellington Management Group LLP increased its holdings in Credo Technology Group by 47.8% in the third quarter. Wellington Management Group LLP now owns 1,624,690 shares of the company's stock valued at $236,571,000 after purchasing an additional 525,585 shares during the period. Finally, Janus Henderson Group PLC raised its position in Credo Technology Group by 841.9% during the 4th quarter. Janus Henderson Group PLC now owns 1,591,348 shares of the company's stock worth $228,979,000 after purchasing an additional 1,422,391 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors and hedge funds.

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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