Credo Technology Group (NASDAQ:CRDO) Stock Price Up 8.9% - Time to Buy?

Key Points

• Credo shares jumped 8.9% to $141.41, with trading volume about 6% above its daily average.
• Quarterly results beat estimates: EPS was $1.20 versus $1.17 expected, while revenue of $479 million rose 114.7% year over year.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $262.67. Company insiders sold 352,538 shares worth about $67.2 million over the past three months, including sales under pre-arranged plans.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shot up 8.9% on Wednesday. The stock traded as high as $148.19 and last traded at $141.41. Approximately 8,146,755 shares traded hands during mid-day trading, an increase of 6% from the average daily volume of 7,693,591 shares. The stock had previously closed at $129.80.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. Bank of America lowered their price objective on Credo Technology Group from $340.00 to $275.00 and set a "buy" rating for the company in a research report on Wednesday, September 2nd. 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. Mizuho dropped 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 report on Monday, September 21st. Stifel Nicolaus reduced their price objective on shares of Credo Technology Group from $350.00 to $310.00 and set a "buy" rating on the stock in a research note on Monday, October 5th. Finally, Barclays lifted their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a research note on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $262.67.

Credo Technology Group Trading Up 8.9%

The firm has a market capitalization of $26.58 billion, a P/E ratio of 50.32, a price-to-earnings-growth ratio of 0.53 and a beta of 3.29. The business has a 50-day moving average of $174.75 and a 200 day moving average of $180.23.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. During the same quarter in the prior year, the company earned $0.52 earnings per share. The company's quarterly revenue was up 114.7% on a year-over-year basis. As a group, research analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Insider Buying and Selling at Credo Technology Group

In related news, CEO William Brennan sold 16,672 shares of the firm's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $151.88, for a total transaction of $2,532,143.36. Following the transaction, the chief executive officer directly owned 1,600,830 shares of the company's stock, valued at $243,134,060.40. This trade represents a 1.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 stock was 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 represents a 0.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 352,538 shares of company stock worth $67,200,077. Corporate insiders own 9.06% of the company's stock.

Hedge Funds Weigh In On Credo Technology Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Atreides Management LP purchased a new stake in Credo Technology Group during the first quarter worth about $102,434,000. The Manufacturers Life Insurance Company raised its stake in Credo Technology Group by 192.1% in the 1st quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company's stock valued at $98,290,000 after acquiring an additional 688,596 shares during the period. H&H International Investment LLC raised its stake in Credo Technology Group by 431.6% in the 1st quarter. H&H International Investment LLC now owns 751,200 shares of the company's stock valued at $70,515,000 after acquiring an additional 609,900 shares during the period. Oaktree Capital Management LP purchased a new stake in Credo Technology Group during the first quarter valued at about $50,596,000. Finally, Pictet Asset Management Holding SA lifted its holdings in Credo Technology Group by 222.5% during the third quarter. Pictet Asset Management Holding SA now owns 740,487 shares of the company's stock valued at $144,170,000 after purchasing an additional 510,905 shares during the last quarter. 80.46% of the stock is owned by hedge funds and other institutional investors.

About Credo Technology Group

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.

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