Traders Buy Large Volume of Credo Technology Group Call Options (NASDAQ:CRDO)

Key Points

• Unusual options activity: Traders purchased 42,247 Credo Technology Group call options, about 41% above the typical volume. The stock rose $17.94 to $213.91 during Friday’s trading.
• Strong quarterly results: Credo exceeded analyst expectations with $1.20 in quarterly EPS and $479 million in revenue, while year-over-year revenue surged 114.7%.
• Analysts remain bullish: Credo has a “Moderate Buy” consensus rating and an average price target of $264.89, though insiders have sold more than 307,000 shares worth $65.6 million over the past 90 days.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) saw some unusual options trading on Friday. Stock traders acquired 42,247 call options on the company. This is an increase of approximately 41% compared to the typical volume of 29,913 call options.

Credo Technology Group Stock Performance

NASDAQ:CRDO traded up $17.94 during trading hours on Friday, reaching $213.91. The stock had a trading volume of 7,577,468 shares, compared to its average volume of 7,485,892. Credo Technology Group has a 52 week low of $86.49 and a 52 week high of $308.67. The company has a 50 day moving average price of $209.15 and a two-hundred day moving average price of $194.86. The stock has a market capitalization of $40.20 billion, a PE ratio of 75.94, a PEG ratio of 0.77 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its 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. The firm had revenue of $479.00 million for the quarter, compared to the consensus estimate of $473.30 million. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The business's quarterly revenue was up 114.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.52 EPS. Equities research analysts predict that Credo Technology Group will post 5.02 EPS for the current year.

Insider Buying and Selling

In other Credo Technology Group news, insider James Laufman sold 5,000 shares of the stock in a transaction on Monday, September 21st. The shares were sold at an average price of $185.00, for a total transaction of $925,000.00. Following the completion of the sale, the insider owned 169,223 shares of the company's stock, valued at $31,306,255. This represents a 2.87% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CTO Chi Cheng sold 27,500 shares of Credo Technology Group stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $166.38, for a total value of $4,575,450.00. Following the completion of the sale, the chief technology officer owned 5,717,397 shares in the company, valued at approximately $951,260,512.86. This represents a 0.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 307,246 shares of company stock worth $65,625,584 in the last 90 days. 9.06% of the stock is currently owned by company insiders.

Institutional Trading of Credo Technology Group

Several institutional investors and hedge funds have recently made changes to their positions in the business. QRG Capital Management Inc. increased its holdings in Credo Technology Group by 20.8% during the second quarter. QRG Capital Management Inc. now owns 6,527 shares of the company's stock valued at $1,774,000 after buying an additional 1,125 shares during the period. Envestnet Portfolio Solutions Inc. acquired a new stake in Credo Technology Group in the second quarter valued at approximately $548,000. Envestnet Asset Management Inc. grew its holdings in Credo Technology Group by 14.6% in the second quarter. Envestnet Asset Management Inc. now owns 174,376 shares of the company's stock worth $47,421,000 after purchasing an additional 22,181 shares during the last quarter. Sequoia Financial Advisors LLC increased its position in shares of Credo Technology Group by 19.0% during the second quarter. Sequoia Financial Advisors LLC now owns 6,659 shares of the company's stock worth $1,811,000 after purchasing an additional 1,063 shares in the last quarter. Finally, IPG Investment Advisors LLC purchased a new stake in shares of Credo Technology Group during the 2nd quarter valued at $3,078,000. 80.46% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on CRDO shares. Barclays raised their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a report on Monday, July 20th. Stifel Nicolaus boosted their price objective on Credo Technology Group from $250.00 to $350.00 and gave the company a "buy" rating in a research note on Monday, June 22nd. JPMorgan Chase & Co. decreased their target price on shares of Credo Technology Group from $335.00 to $310.00 and set an "overweight" rating on the stock in a research note on Wednesday, September 2nd. Rosenblatt Securities lifted their price target on shares of Credo Technology Group from $215.00 to $235.00 and gave the company a "neutral" rating in a report on Wednesday, September 2nd. Finally, The Goldman Sachs Group reiterated a "buy" rating and issued a $250.00 price target on shares of Credo Technology Group in a research report on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Credo Technology Group has an average rating of "Moderate Buy" and a consensus target price of $264.89.

Credo Technology Group Company Profile

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for the data infrastructure market. Its products are designed to help move data efficiently within and between networking, storage and computing systems, with applications in artificial intelligence, cloud computing, telecommunications and enterprise data centers.

The company's portfolio includes serializer/deserializer (SerDes) integrated circuits, retimers, optical digital signal processors and active electrical cables.

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.