Credo Technology Group (NASDAQ:CRDO) Stock Price Up 1.3% - Here's What Happened

Key Points

• Credo Technology shares rose 1.3% to $194.79 on Wednesday, with trading volume about 20% below its average.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $264.89, despite mixed recent target changes.
• The company exceeded quarterly expectations, reporting $1.20 EPS and $479 million in revenue, up 114.7% year over year; however, insiders have sold about $73.8 million of stock over the past 90 days.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) were up 1.3% on Wednesday. The company traded as high as $195.56 and last traded at $194.79. Approximately 5,972,370 shares changed hands during trading, a decline of 20% from the average daily volume of 7,505,748 shares. The stock had previously closed at $192.35.

Wall Street Analyst Weigh In

A number of analysts have recently commented on CRDO shares. Mizuho cut their price target on 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. Roth Capital raised their price objective on shares of Credo Technology Group from $200.00 to $300.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Wall Street Zen downgraded shares of Credo Technology Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Susquehanna boosted their target price on shares of Credo Technology Group from $235.00 to $250.00 and gave the stock a "positive" rating in a report on Tuesday, July 21st. Finally, Stifel Nicolaus upped their price target on shares of Credo Technology Group from $250.00 to $350.00 and gave the company a "buy" rating in a research report on Monday, June 22nd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $264.89.

Credo Technology Group Price Performance

The firm has a market capitalization of $36.61 billion, a P/E ratio of 69.32, a PEG ratio of 0.77 and a beta of 3.22. The company has a fifty day moving average of $208.30 and a 200 day moving average of $196.63.

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 (EPS) 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 for the quarter, compared to the consensus estimate of $473.30 million. During the same quarter in the previous year, the company earned $0.52 EPS. The company's revenue for the quarter was up 114.7% on a year-over-year basis. On average, sell-side analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Insiders Place Their Bets

In other Credo Technology Group news, insider James Laufman sold 5,000 shares of Credo Technology Group stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $185.00, for a total value of $925,000.00. Following the completion of the sale, the insider directly owned 169,223 shares in the company, valued at approximately $31,306,255. The trade was a 2.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Chi Cheng sold 27,500 shares of the business's stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $193.12, for a total value of $5,310,800.00. Following the completion of the transaction, the chief technology officer directly owned 5,689,897 shares in the company, valued at approximately $1,098,832,908.64. This trade 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. In the last 90 days, insiders have sold 357,246 shares of company stock valued at $73,830,784. 9.06% of the stock is currently owned by insiders.

Institutional Trading of Credo Technology Group

Several hedge funds have recently modified their holdings of CRDO. Orion Capital Management LLC bought a new position in Credo Technology Group during the second quarter worth $27,000. Reflection Asset Management acquired a new position in shares of Credo Technology Group during the fourth quarter valued at about $25,000. AlphaCentric Advisors LLC bought a new position in shares of Credo Technology Group during the 1st quarter worth about $33,000. MCF Advisors LLC boosted its position in shares of Credo Technology Group by 309.9% during the 4th quarter. MCF Advisors LLC now owns 373 shares of the company's stock worth $54,000 after purchasing an additional 282 shares in the last quarter. Finally, Western Wealth Management LLC acquired a new stake in shares of Credo Technology Group in the 1st quarter valued at about $38,000. Institutional investors own 80.46% of the company's stock.

About Credo Technology Group

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for data infrastructure. Its technologies are designed to improve the performance, power efficiency and reliability of connections used in cloud computing, artificial intelligence, high-performance computing, telecommunications and enterprise networks.

The company's product portfolio includes serializer/deserializer (SerDes) intellectual property, integrated circuits, active electrical cables and optical connectivity products.

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