Credo Technology Group (NASDAQ:CRDO) Stock Price Up 7.3% - What's Next?

Key Points

• Credo shares rose 7.3% to $120.51 in Friday mid-day trading, with volume 25% above its daily average.
• The company beat quarterly earnings and revenue estimates, reporting EPS of $1.20 and revenue of $479 million; revenue increased 114.7% year over year.
• Analysts have a Moderate Buy consensus rating and an average price target of $262.67. Insiders sold 352,538 shares worth about $67.2 million over the past three months.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) were up 7.3% during mid-day trading on Friday. The company traded as high as $125.80 and last traded at $120.51. Approximately 9,621,214 shares were traded during trading, an increase of 25% from the average daily volume of 7,687,186 shares. The stock had previously closed at $112.33.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Evercore set a $292.00 price target on Credo Technology Group in a report on Wednesday, September 2nd. Weiss Ratings downgraded shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, October 6th. TD Cowen increased their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the company a "buy" rating in a research report on Tuesday, August 18th. JPMorgan Chase & Co. lowered their target price on shares of 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. Finally, Bank of America dropped their price target on shares of Credo Technology Group from $340.00 to $275.00 and set a "buy" rating on the stock in a research report 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 company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $262.67.

Credo Technology Group Trading Up 7.3%

The company's 50-day moving average price is $181.07 and its two-hundred day moving average price is $180.45. The company has a market cap of $22.65 billion, a P/E ratio of 42.89, a price-to-earnings-growth ratio of 0.54 and a beta of 3.29.

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

Insider Buying and Selling

In other news, CEO William Brennan sold 16,672 shares of the company's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $151.88, for a total transaction of $2,532,143.36. Following the completion of the sale, the chief executive officer directly owned 1,600,830 shares of the company's stock, valued at $243,134,060.40. This represents a 1.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of the stock in a transaction 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 completion of the transaction, the chief technology officer owned 5,662,397 shares of the company's stock, valued at $1,098,108,650.21. This trade represents a 0.48% 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 have sold 352,538 shares of company stock worth $67,200,077 in the last three months. 9.06% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. GAMMA Investing LLC boosted its holdings in Credo Technology Group by 2.6% during the third quarter. GAMMA Investing LLC now owns 1,986 shares of the company's stock valued at $387,000 after purchasing an additional 51 shares in the last quarter. City Center Advisors LLC grew its stake in shares of Credo Technology Group by 2.1% in the 2nd quarter. City Center Advisors LLC now owns 2,595 shares of the company's stock valued at $706,000 after purchasing an additional 53 shares during the period. Versant Capital Management Inc grew its stake in shares of Credo Technology Group by 8.0% in the 2nd quarter. Versant Capital Management Inc now owns 755 shares of the company's stock valued at $205,000 after purchasing an additional 56 shares during the period. Prentice Wealth Management LLC grew its stake in shares of Credo Technology Group by 7.5% in the 3rd quarter. Prentice Wealth Management LLC now owns 1,038 shares of the company's stock valued at $202,000 after purchasing an additional 72 shares during the period. Finally, TD Waterhouse Canada Inc. raised its holdings in shares of Credo Technology Group by 28.1% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 337 shares of the company's stock worth $71,000 after buying an additional 74 shares in the last quarter. 80.46% of the stock is currently owned by institutional investors and hedge funds.

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.

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