Credo Technology Group (NASDAQ:CRDO) Stock Price Up 1.8% - Here's What Happened

Key Points

• Credo Technology Group shares rose 1.8% to $226.51 in Tuesday trading, although volume was 64% below the stock’s average daily volume.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $268.39; recent firms raised targets as high as $340.
• The company reported quarterly EPS of $1.16 versus estimates of $1.02, while revenue surged 157% year over year to $437 million. Insiders sold $101 million of shares over the past 90 days, primarily through pre-arranged trading plans.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares shot up 1.8% during trading on Tuesday . The company traded as high as $232.00 and last traded at $226.51. 2,629,852 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 7,284,424 shares. The stock had previously closed at $222.61.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on CRDO. Zacks Research cut shares of Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 3rd. Susquehanna lifted their target price on shares of Credo Technology Group from $235.00 to $250.00 and gave the stock a "positive" rating in a research note on Tuesday, July 21st. Bank of America upped their price target on Credo Technology Group from $252.00 to $340.00 and gave the company a "buy" rating in a research report on Tuesday, June 23rd. Roth Capital increased their price target on shares of Credo Technology Group from $200.00 to $300.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. Finally, Mizuho boosted their price objective on shares of Credo Technology Group from $260.00 to $290.00 and gave the company an "outperform" rating in a report on Tuesday, June 2nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $268.39.

Credo Technology Group Stock Performance

The company has a 50 day moving average of $240.76 and a 200 day moving average of $183.84. The stock has a market capitalization of $42.24 billion, a price-to-earnings ratio of 91.33, a PEG ratio of 1.05 and a beta of 3.23.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Monday, June 1st. The company reported $1.16 EPS for the quarter, beating analysts' consensus estimates of $1.02 by $0.14. The company had revenue of $437.00 million for the quarter, compared to the consensus estimate of $431.80 million. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The company's quarterly revenue was up 157.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.20 EPS. As a group, research analysts expect that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Daniel W. Fleming sold 7,580 shares of the company's stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $245.88, for a total value of $1,863,770.40. Following the completion of the transaction, the chief financial officer directly owned 504,708 shares of the company's stock, valued at $124,097,603.04. This represents a 1.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Tung Lam sold 55,441 shares of the company's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the transaction, the chief operating officer owned 2,529,169 shares of the company's stock, valued at approximately $538,763,580.38. The trade was a 2.15% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 435,076 shares of company stock worth $101,043,506 over the last 90 days. 11.84% of the stock is owned by insiders.

Institutional Trading of Credo Technology Group

Large investors have recently bought and sold shares of the business. Reflection Asset Management purchased a new stake in shares of Credo Technology Group in the fourth quarter valued at about $25,000. Acumen Wealth Advisors LLC purchased a new position in shares of Credo Technology Group during the fourth quarter worth about $25,000. Orion Capital Management LLC purchased a new position in shares of Credo Technology Group during the second quarter worth about $27,000. AlphaCentric Advisors LLC acquired a new position in Credo Technology Group in the 1st quarter valued at about $33,000. Finally, Van ECK Associates Corp acquired a new position in Credo Technology Group in the 4th quarter valued at about $37,000. Institutional investors and hedge funds own 80.46% of the company's stock.

About Credo Technology Group

Credo Technology Group, Inc NASDAQ: CRDO is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo's product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.

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