Credo Technology Group (NASDAQ:CRDO) Shares Up 10.3% - Here's What Happened

Key Points

• Credo shares rose 10.3% to $132.89 in Monday mid-day trading, with volume about 16% above its daily average.
• Analysts maintain a consensus “Moderate Buy” rating and an average price target of $262.67, despite several firms recently lowering their targets.
• In its latest reported quarter, Credo beat earnings and revenue estimates, while revenue grew 114.7% year over year to $479 million.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) was up 10.3% during mid-day trading on Monday. The stock traded as high as $136.89 and last traded at $132.89. Approximately 8,923,533 shares traded hands during trading, an increase of 16% from the average daily volume of 7,700,517 shares. The stock had previously closed at $120.51.

Analyst Ratings Changes

CRDO has been the subject of a number of recent analyst reports. Rosenblatt Securities reissued a "neutral" rating and issued a $235.00 price objective on shares of Credo Technology Group in a report on Thursday, October 15th. 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 note on Wednesday, September 2nd. Barclays increased their price target on Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a research note on Monday, July 20th. Bank of America lowered their price target on Credo Technology Group from $340.00 to $275.00 and set a "buy" rating on the stock in a report on Wednesday, September 2nd. Finally, Mizuho cut their price objective on shares of Credo Technology Group from $290.00 to $245.00 and set an "outperform" rating on the stock in a research note on Monday, September 21st. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $262.67.

Credo Technology Group Trading Up 10.3%

The company has a market capitalization of $24.98 billion, a price-to-earnings ratio of 47.29, a PEG ratio of 0.48 and a beta of 3.29. The firm has a 50-day moving average price of $178.67 and a 200-day moving average price of $180.29.

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 predict that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Insider Activity

In related news, CTO Chi Cheng sold 27,500 shares of the business's stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total value of $5,333,075.00. Following the sale, the chief technology officer directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 that occurred on Friday, September 25th. The shares were sold at an average price of $206.30, for a total transaction 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. In the last quarter, insiders sold 352,538 shares of company stock worth $67,200,077. Corporate insiders own 9.06% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Orion Capital Management LLC acquired a new stake in shares of Credo Technology Group in the second quarter valued at about $27,000. Hoey Investments Inc. bought a new position in shares of Credo Technology Group in the third quarter worth about $31,000. Burkett Financial Services LLC acquired a new position in shares of Credo Technology Group during the 3rd quarter worth about $33,000. Thurston Springer Miller Herd & Titak Inc. lifted its position in shares of Credo Technology Group by 4,900.0% during the 3rd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 200 shares of the company's stock worth $39,000 after purchasing an additional 196 shares during the last quarter. Finally, Alpine Bank Wealth Management acquired a new position in shares of Credo Technology Group during the 3rd quarter worth about $40,000. Institutional investors own 80.46% of the company's stock.

Credo Technology Group Company Profile

Credo Technology Group designs and supplies high-speed connectivity solutions for data infrastructure, including data centers and networking systems. Its products help move data between processors, servers, switches and other equipment used in demanding, high-bandwidth environments.

The company's offerings include active electrical cables, semiconductor and optical digital signal processing products, retimers, and other connectivity components. These solutions are used in applications such as cloud computing and artificial intelligence infrastructure.

Credo is headquartered in San Jose, California, and serves customers in the global data infrastructure market.

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