Credo Technology Group (NASDAQ:CRDO) Stock Price Up 10.8% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price traded up 10.8% on Tuesday. The stock traded as high as $168.26 and last traded at $167.43. Approximately 7,755,065 shares traded hands during trading, an increase of 2% from the average session volume of 7,617,160 shares. The stock had previously closed at $151.15.

Wall Street Analysts Forecast Growth

CRDO has been the subject of several research analyst reports. Stifel Nicolaus decreased their target price on 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. 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. Barclays increased their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a research report on Monday, July 20th. TD Cowen lifted their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock a “buy” rating in a research report on Tuesday, August 18th. Finally, JPMorgan Chase & Co. dropped 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. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, Credo Technology Group has a consensus rating of “Moderate Buy” and a consensus price target of $262.67.

Credo Technology Group Stock Up 10.8%

The firm’s 50-day simple moving average is $195.15 and its 200-day simple moving average is $180.50. The firm has a market capitalization of $31.47 billion, a PE ratio of 59.58, a price-to-earnings-growth ratio of 0.59 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO) last posted its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.03. The firm had revenue of $479.00 million for the quarter, compared to analysts’ expectations 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 revenue was up 114.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.52 earnings per share. On average, equities research analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Insider Activity

In other Credo Technology Group news, COO Yat Lam sold 55,441 shares of the firm’s stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $213.02, for a total value of $11,810,041.82. Following the completion of the sale, the chief operating officer owned 2,529,169 shares of the company’s stock, valued at $538,763,580.38. This trade represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of the firm’s 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 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. In the last quarter, insiders sold 457,952 shares of company stock valued at $90,919,736. 9.06% of the stock is currently owned by company insiders.

Institutional Trading of Credo Technology Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System grew its holdings 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 valued at $22,612,000 after purchasing an additional 5,113 shares during the period. Corsair Capital Management L.P. acquired a new stake in shares of Credo Technology Group in the first quarter valued at about $469,000. Lazard Asset Management LLC increased its stake in Credo Technology Group by 55.6% during the 1st quarter. Lazard Asset Management LLC now owns 67,051 shares of the company’s stock worth $6,294,000 after buying an additional 23,949 shares in the last quarter. Quantinno Capital Management LP raised its holdings in shares of Credo Technology Group by 68.4% during the first quarter. Quantinno Capital Management LP now owns 34,124 shares of the company’s stock valued at $3,203,000 after acquiring an additional 13,859 shares during the last quarter. Finally, Estuary Capital Management LP lifted its holdings in Credo Technology Group by 87.4% in the 1st quarter. Estuary Capital Management LP now owns 412,227 shares of the company’s stock valued at $38,696,000 after purchasing an additional 192,218 shares in the last quarter. Institutional investors and hedge funds own 80.46% of the company’s stock.

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.