Credo Technology Group (NASDAQ:CRDO) Shares Climb 2.6% - Should You Buy?

Key Points

• Credo shares rose 2.6% to $151.15, although the stock remains below its 50-day and 200-day moving averages and carries a high beta of 3.25.
• Analysts maintain a consensus “Moderate Buy” rating with a $262.67 average price target, despite some recent downgrades and target reductions.
• The company delivered strong quarterly results, beating EPS and revenue estimates while revenue jumped 114.7% year over year; however, insiders sold roughly $90.9 million of stock over the past quarter.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price traded up 2.6% during trading on Monday. The stock traded as high as $156.53 and last traded at $151.15. 7,105,600 shares were traded during trading, a decline of 7% from the average session volume of 7,616,284 shares. The stock had previously closed at $147.29.

Analysts Set New Price Targets

Several brokerages recently weighed in on CRDO. Weiss Ratings downgraded shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, October 6th. TD Cowen upped 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. Zacks Research lowered shares of Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 3rd. Evercore set a $292.00 price target on Credo Technology Group in a report on Wednesday, September 2nd. Finally, Stifel Nicolaus reduced their price objective on Credo Technology Group from $350.00 to $310.00 and set a "buy" rating for the company in a research report on Monday, October 5th. One equities research 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 stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $262.67.

Credo Technology Group Stock Performance

The business has a 50 day simple moving average of $195.54 and a 200-day simple moving average of $208.06. The stock has a market capitalization of $28.41 billion, a P/E ratio of 53.79, a price-to-earnings-growth ratio of 0.59 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%. The company had revenue of $479.00 million for the quarter, compared to the consensus estimate of $473.30 million. During the same quarter in the previous year, the business earned $0.52 EPS. The company's quarterly revenue was up 114.7% compared to the same quarter last year. Equities research analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Insider Buying and Selling at Credo Technology Group

In related news, CTO Chi Cheng sold 27,500 shares of the firm's stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $172.62, for a total transaction of $4,747,050.00. Following the completion of the sale, the chief technology officer directly owned 5,579,897 shares in the company, valued at approximately $963,201,820.14. This trade represents a 0.49% decrease in their ownership of the stock. The sale was disclosed in a 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 Credo Technology Group stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $205.22, for a total transaction of $10,261,000.00. Following the completion of the transaction, the chief operating officer owned 2,254,169 shares in the company, valued at approximately $462,600,562.18. This trade represents a 2.17% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 457,952 shares of company stock valued at $90,919,736. Corporate insiders own 9.06% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Maxi Investments CY Ltd purchased a new position in Credo Technology Group in the 3rd quarter worth about $195,000. Capelight Capital Asset Management LP lifted its stake in Credo Technology Group by 20.5% during the third quarter. Capelight Capital Asset Management LP now owns 22,900 shares of the company's stock valued at $4,461,000 after buying an additional 3,900 shares in the last quarter. Kingswood Wealth Advisors LLC lifted its stake in Credo Technology Group by 125.1% during the third quarter. Kingswood Wealth Advisors LLC now owns 2,901 shares of the company's stock valued at $565,000 after buying an additional 1,612 shares in the last quarter. Sigma Planning Corp boosted its holdings in shares of Credo Technology Group by 175.4% in the third quarter. Sigma Planning Corp now owns 15,734 shares of the company's stock worth $3,065,000 after buying an additional 10,021 shares during the period. Finally, EULAV Asset Management acquired a new position in shares of Credo Technology Group in the third quarter worth about $16,875,000. Institutional investors and hedge funds own 80.46% of the company's stock.

About Credo Technology Group

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.

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