Franklin Resources Inc. Buys 429,299 Shares of Credo Technology Group Holding Ltd. $CRDO

Key Points

• Franklin Resources increased its stake in Credo by 65.1% in Q3, buying 429,299 shares to hold 1,088,688 shares (about 0.63% of the company) valued at roughly $158.5 million.
• Credo topped expectations with $1.07 EPS (vs. $0.78 est.) and $407.0M revenue (up 201.5% YoY); the stock carries a $20.58B market cap, a P/E of 61.98, and an average analyst rating of "Buy" with a $206.33 target.
• Insiders have been net sellers, offloading 423,085 shares (about $59.5M) in the past 90 days, including transactions by the CEO and CTO.

Franklin Resources Inc. grew its stake in Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Free Report) by 65.1% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,088,688 shares of the company's stock after buying an additional 429,299 shares during the quarter. Franklin Resources Inc. owned 0.63% of Credo Technology Group worth $158,524,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in CRDO. Savant Capital LLC boosted its stake in Credo Technology Group by 0.7% in the 3rd quarter. Savant Capital LLC now owns 9,914 shares of the company's stock worth $1,444,000 after purchasing an additional 68 shares during the period. Illinois Municipal Retirement Fund raised its stake in shares of Credo Technology Group by 0.6% in the 3rd quarter. Illinois Municipal Retirement Fund now owns 15,783 shares of the company's stock valued at $2,298,000 after purchasing an additional 91 shares during the period. Versant Capital Management Inc lifted its holdings in shares of Credo Technology Group by 18.0% in the third quarter. Versant Capital Management Inc now owns 663 shares of the company's stock valued at $97,000 after purchasing an additional 101 shares in the last quarter. GAMMA Investing LLC boosted its position in shares of Credo Technology Group by 6.7% during the third quarter. GAMMA Investing LLC now owns 1,891 shares of the company's stock worth $275,000 after buying an additional 118 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Credo Technology Group by 28.3% during the third quarter. EverSource Wealth Advisors LLC now owns 643 shares of the company's stock worth $94,000 after buying an additional 142 shares during the period. 80.46% of the stock is currently owned by institutional investors and hedge funds.

Credo Technology Group Stock Down 3.7%

Shares of Credo Technology Group stock opened at $111.57 on Friday. The stock has a market cap of $20.58 billion, a P/E ratio of 61.98 and a beta of 2.67. Credo Technology Group Holding Ltd. has a 12-month low of $29.09 and a 12-month high of $213.80. The business's 50 day moving average is $127.26 and its 200-day moving average is $143.02.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results on Monday, March 2nd. The company reported $1.07 earnings per share 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 for the quarter, compared to the consensus estimate of $385.94 million. During the same period in the previous year, the company earned $0.25 earnings per share. The firm's revenue for the quarter was up 201.5% on a year-over-year basis. On average, sell-side analysts expect that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on CRDO. The Goldman Sachs Group set a $165.00 target price on Credo Technology Group and gave the company a "buy" rating in a research report on Thursday, February 19th. Mizuho decreased their price target 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. Roth Mkm cut their price objective on shares of Credo Technology Group from $250.00 to $200.00 and set a "buy" rating on the stock in a research report on Tuesday, February 10th. New Street Research set a $240.00 target price on shares of Credo Technology Group in a report on Tuesday, December 2nd. Finally, Rosenblatt Securities decreased their target price on shares of Credo Technology Group from $170.00 to $125.00 and set a "neutral" rating for the company in a research report on Tuesday, March 3rd. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Credo Technology Group presently has an average rating of "Buy" and an average target price of $206.33.

Insider Activity

In related news, CEO William Joseph Brennan sold 50,000 shares of Credo Technology Group stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $127.69, for a total transaction of $6,384,500.00. Following the completion of the transaction, the chief executive officer owned 1,832,502 shares in the company, valued at approximately $233,992,180.38. This trade represents a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CTO Chi Fung Cheng sold 55,000 shares of the business's stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $150.77, for a total value of $8,292,350.00. Following the transaction, the chief technology officer directly owned 6,503,961 shares in the company, valued at approximately $980,602,199.97. This trade represents a 0.84% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 423,085 shares of company stock worth $59,514,322 over the last 90 days. 11.84% of the stock is owned by company insiders.

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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