Credo Technology Group (NASDAQ:CRDO) Shares Gap Up - Here's What Happened

Key Points

• CRDO shares gapped higher, opening at $184.09 versus the prior close of $171.51, with approximately 1.49 million shares traded.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $262.67; recent targets range from $245 to $300.
• Credo reported quarterly EPS of $1.20, beating estimates, while revenue rose 114.7% year over year to $479 million. Insiders have sold about $88.9 million of stock over the past three months, primarily through pre-arranged plans.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $171.51, but opened at $184.09. Credo Technology Group shares last traded at $183.9410, with a volume of 1,494,768 shares traded.

Analysts Set New Price Targets

Several equities analysts have recently commented on CRDO shares. Susquehanna upped their target price on Credo Technology Group from $235.00 to $250.00 and gave the company a "positive" rating in a report on Tuesday, July 21st. Mizuho reduced their price objective on Credo Technology Group from $290.00 to $245.00 and set an "outperform" rating for the company in a research report on Monday, September 21st. TD Cowen increased their target price on Credo Technology Group from $260.00 to $300.00 and gave the stock a "buy" rating in a research report on Tuesday, August 18th. Wall Street Zen downgraded shares of Credo Technology Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Finally, Barclays upped their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a research report on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $262.67.

Credo Technology Group Stock Performance

The firm has a market capitalization of $34.39 billion, a P/E ratio of 65.18, a price-to-earnings-growth ratio of 0.69 and a beta of 3.25. The firm has a 50 day moving average price of $201.57 and a two-hundred day moving average price of $206.74.

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

Insider Transactions at Credo Technology Group

In related news, Director Pantas Sutardja sold 1,540 shares of the company's stock in a transaction on Monday, October 12th. The shares were sold at an average price of $212.22, for a total value of $326,818.80. Following the completion of the sale, the director directly owned 5,890,494 shares in the company, valued at approximately $1,250,080,636.68. This represents a 0.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 50,000 shares of the stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $205.22, for a total value of $10,261,000.00. Following the transaction, the chief operating officer directly owned 2,254,169 shares in the company, valued at approximately $462,600,562.18. This 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 three months, insiders sold 441,286 shares of company stock valued at $88,910,653. Insiders own 9.06% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

Several hedge funds have recently made changes to their positions in CRDO. Robbins Farley lifted its position in shares of Credo Technology Group by 4.0% during the third quarter. Robbins Farley now owns 11,076 shares of the company's stock worth $2,157,000 after purchasing an additional 425 shares in the last quarter. Capstone Capital Management Ltd bought a new stake in shares of Credo Technology Group during the third quarter worth approximately $593,000. Physician Wealth Advisors Inc. lifted its holdings in Credo Technology Group by 219.4% in the third quarter. Physician Wealth Advisors Inc. now owns 412 shares of the company's stock valued at $80,000 after buying an additional 283 shares during the period. Carnegie Investment Counsel grew its holdings in Credo Technology Group by 4.8% during the 3rd quarter. Carnegie Investment Counsel now owns 5,350 shares of the company's stock worth $1,042,000 after acquiring an additional 245 shares during the period. Finally, Robeco Institutional Asset Management B.V. grew its holdings in Credo Technology Group by 1.8% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 79,848 shares of the company's stock worth $15,554,000 after acquiring an additional 1,447 shares during the period. Institutional investors own 80.46% of the company's stock.

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.

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.