Credo Technology Group (NASDAQ:CRDO) Stock Price Up 3.7% - Still a Buy?

Key Points

• Credo Technology Group shares rose 3.7% to $173.69, giving the company a market capitalization of approximately $32.65 billion. The stock remains volatile, with a beta of 3.25, and trades below its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with one Strong Buy, 14 Buy and three Hold ratings; the consensus is “Moderate Buy” with an average price target of $262.67, despite several recent target reductions.
• Credo reported strong quarterly results, including $1.20 EPS versus the $1.17 estimate and $479 million in revenue, up 114.7% year over year. However, insiders sold 457,952 shares worth about $90.9 million over the past 90 days.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price rose 3.7% during mid-day trading on Wednesday. The company traded as high as $175.50 and last traded at $173.69. Approximately 5,189,041 shares changed hands during mid-day trading, a decline of 32% from the average session volume of 7,602,508 shares. The stock had previously closed at $167.43.

Analyst Ratings Changes

CRDO has been the topic of several analyst reports. Mizuho decreased their price target 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. Stifel Nicolaus cut their price objective on shares of 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. Barclays upped their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an "overweight" rating in a research note on Monday, July 20th. Weiss Ratings lowered shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, October 6th. Finally, Evercore set a $292.00 target price on shares of Credo Technology Group in a research note on Wednesday, September 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Credo Technology Group currently has an average rating of "Moderate Buy" and an average target price of $262.67.

Credo Technology Group Trading Up 3.7%

The company's 50 day moving average price is $192.84 and its 200-day moving average price is $180.63. The company has a market capitalization of $32.65 billion, a PE ratio of 61.81, a PEG ratio of 0.59 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping the consensus estimate 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 return on equity of 28.77% and a net margin of 33.83%. The business's quarterly revenue was up 114.7% on a year-over-year basis. During the same period last year, the company posted $0.52 EPS. As a group, analysts predict that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Insider Activity at Credo Technology Group

In other Credo Technology Group news, COO Yat Lam sold 55,441 shares of Credo Technology Group stock in a transaction that occurred 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 transaction, the chief operating officer directly owned 2,529,169 shares of the company's stock, valued at $538,763,580.38. The trade was a 2.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of Credo Technology Group stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total transaction of $5,333,075.00. Following the transaction, the chief technology officer directly owned 5,662,397 shares in the company, valued at approximately $1,098,108,650.21. This trade represents a 0.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 457,952 shares of company stock worth $90,919,736 in the last 90 days. 9.06% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds have recently made changes to their positions in the business. California State Teachers Retirement System raised its position in Credo Technology Group by 2.2% in the first quarter. California State Teachers Retirement System now owns 240,886 shares of the company's stock worth $22,612,000 after acquiring an additional 5,113 shares in the last quarter. Corsair Capital Management L.P. bought a new position in shares of Credo Technology Group during the 1st quarter valued at about $469,000. Lazard Asset Management LLC boosted its position in shares of Credo Technology Group by 55.6% during the 1st quarter. Lazard Asset Management LLC now owns 67,051 shares of the company's stock valued at $6,294,000 after purchasing an additional 23,949 shares in the last quarter. Quantinno Capital Management LP grew its stake in shares of Credo Technology Group by 68.4% in the 1st quarter. Quantinno Capital Management LP now owns 34,124 shares of the company's stock worth $3,203,000 after purchasing an additional 13,859 shares during the last quarter. Finally, Estuary Capital Management LP grew its stake in shares of Credo Technology Group by 87.4% in the 1st quarter. Estuary Capital Management LP now owns 412,227 shares of the company's stock worth $38,696,000 after purchasing an additional 192,218 shares during the last quarter. Hedge funds and other institutional investors 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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