Rakuten Investment Management Inc. Acquires New Holdings in Credo Technology Group Holding Ltd. $CRDO

Key Points

• Rakuten Investment Management acquired 39,734 Credo shares in the third quarter, worth about $7.64 million; institutional investors collectively own 80.46% of the company.
• Credo beat quarterly earnings and revenue estimates, with revenue up 114.7% year over year to $479 million. The company also reported a 33.83% net margin.
• Shares opened at $112.33, well below their 50- and 200-day averages near $180, amid concerns that political opposition could slow data-center development and AI infrastructure spending.

Rakuten Investment Management Inc. bought a new stake in Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Free Report) in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 39,734 shares of the company's stock, valued at approximately $7,643,000.

A number of other hedge funds have also recently modified their holdings of the stock. Orion Capital Management LLC acquired a new stake in Credo Technology Group during the 2nd quarter worth $27,000. Hoey Investments Inc. acquired a new position in Credo Technology Group in the third quarter valued at $31,000. AlphaCentric Advisors LLC acquired a new position in Credo Technology Group in the first quarter valued at $33,000. Burkett Financial Services LLC purchased a new position in shares of Credo Technology Group during the third quarter worth about $33,000. Finally, Western Wealth Management LLC purchased a new position in shares of Credo Technology Group during the first quarter worth about $38,000. 80.46% of the stock is owned by hedge funds and other institutional investors.

Credo Technology Group Price Performance

CRDO stock opened at $112.33 on Friday. The company has a fifty day moving average price of $181.07 and a 200 day moving average price of $180.45. Credo Technology Group Holding Ltd. has a 12 month low of $86.49 and a 12 month high of $308.67. The company has a market cap of $21.11 billion, a price-to-earnings ratio of 39.98, a price-to-earnings-growth ratio of 0.54 and a beta of 3.29.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The firm had revenue of $479.00 million during the quarter, compared to analysts' expectations of $473.30 million. During the same quarter in the prior year, the business earned $0.52 EPS. Credo Technology Group's quarterly revenue was up 114.7% compared to the same quarter last year. As a group, analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Credo Technology Group News Summary

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

• Positive Sentiment: Credo and Oracle secured approval for two optical telemetry standards from the Open Compute Project. The standards support data-center reliability and could strengthen Credo’s position in next-generation AI infrastructure. Credo and Oracle Drive AI Optical Innovation
• Positive Sentiment: Credo’s latest reported quarter showed revenue growth of 114.7% year over year, with revenue and earnings per share above consensus estimates, providing a strong business backdrop to the sell-off. Credo Revenue More Than Doubled
• Negative Sentiment: Investors are concerned that Democratic election victories could lead to limits on data-center development, particularly in Texas, and slow AI infrastructure spending. That could weigh on demand for Credo’s connectivity products; however, the article notes that a slower buildout is not reflected in the company’s guidance or analyst estimates. Credo Sinks as Election Results Stoke AI Fears
• Negative Sentiment: The political concerns have contributed to a broader sell-off in chip and AI data-center stocks, adding market-wide pressure to CRDO beyond company-specific news. Chip Stocks Feeling Blue After Democratic Party Victories

Insider Buying and Selling

In related news, CTO Chi Cheng sold 27,500 shares of the business's stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $193.93, for a total value of $5,333,075.00. Following the transaction, the chief technology officer owned 5,662,397 shares in the company, valued at $1,098,108,650.21. The trade was a 0.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 50,000 shares of the company's stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $206.30, for a total value of $10,315,000.00. Following the sale, the chief operating officer directly owned 2,479,169 shares of the company's stock, valued at approximately $511,452,564.70. This represents a 1.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 352,538 shares of company stock valued at $67,200,077 over the last quarter. 9.06% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. JPMorgan Chase & Co. cut their target price on Credo Technology Group from $335.00 to $310.00 and set an "overweight" rating on the stock in a research report on Wednesday, September 2nd. Susquehanna upped their target price on Credo Technology Group from $235.00 to $250.00 and gave the company a "positive" rating in a research report on Tuesday, July 21st. Bank of America decreased their target price on Credo Technology Group from $340.00 to $275.00 and set a "buy" rating for the company in a research report on Wednesday, September 2nd. TD Cowen raised their price target on Credo Technology Group from $260.00 to $300.00 and gave the stock a "buy" rating in a research note on Tuesday, August 18th. Finally, Stifel Nicolaus cut their price target on Credo Technology Group from $350.00 to $310.00 and set a "buy" rating on the stock in a research report on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $262.67.

Credo Technology Group Company Profile

Credo Technology Group Holding Ltd. is a fabless semiconductor and connectivity solutions company that develops high-speed data-infrastructure technologies. Its products are designed to help data centers and communications networks move large volumes of information with lower power consumption and improved signal integrity.

The company's portfolio includes serializer/deserializer (SerDes) intellectual property, application-specific integrated circuits, active electrical cables, optical digital signal processors and related connectivity platforms.

Want to see what other hedge funds are holding CRDO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.