Credo Technology Group (NASDAQ:CRDO) Stock Jumps 7.8% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares were up 7.8% during mid-day trading on Tuesday. The company traded as high as $152.62 and last traded at $150.91. Approximately 6,026,835 shares traded hands during mid-day trading, a decline of 21% from the average session volume of 7,619,412 shares. The stock had previously closed at $140.02.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on CRDO shares. Wall Street Zen downgraded shares of Credo Technology Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. TD Cowen increased their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the company a “buy” rating in a report on Tuesday, August 18th. Evercore set a $292.00 price objective on shares of Credo Technology Group in a research report on Wednesday, September 2nd. Stifel Nicolaus decreased their price target on Credo Technology Group from $350.00 to $310.00 and set a “buy” rating for the company in a research note on Monday, October 5th. Finally, Bank of America dropped their target price on shares of Credo Technology Group from $340.00 to $275.00 and set a “buy” rating on the stock in a research note on Wednesday, September 2nd. One 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. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $262.67.

Credo Technology Group Trading Up 7.8%

The stock has a market capitalization of $28.36 billion, a price-to-earnings ratio of 53.70, a PEG ratio of 0.69 and a beta of 3.25. The stock has a 50-day moving average price of $186.58 and a 200 day moving average price of $180.74.

Credo Technology Group (NASDAQ:CRDO) last announced 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 business had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The company’s revenue for the quarter was up 114.7% compared to the same quarter last year. During the same quarter last year, the business earned $0.52 earnings per share. Equities research analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Insider Transactions at Credo Technology Group

In related news, COO Yat Lam sold 50,000 shares of Credo Technology Group stock in a transaction on Friday, September 25th. The stock was sold at an average price of $206.30, for a total value of $10,315,000.00. Following the transaction, the chief operating officer owned 2,479,169 shares in the company, valued at approximately $511,452,564.70. This trade represents a 1.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 sale, the chief executive officer directly owned 1,600,830 shares of the company’s stock, valued at approximately $243,134,060.40. This trade represents a 1.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 352,538 shares of company stock valued at $67,200,077. Corporate insiders own 9.06% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

A number of institutional investors have recently made changes to their positions in the business. Pictet Asset Management Holding SA grew its stake 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 worth $144,170,000 after purchasing an additional 510,905 shares during the period. Formidable Asset Management LLC raised its position in Credo Technology Group by 68.5% in the 3rd quarter. Formidable Asset Management LLC now owns 3,775 shares of the company’s stock valued at $735,000 after buying an additional 1,535 shares during the last quarter. OPTIMAS CAPITAL Ltd bought a new stake in Credo Technology Group in the 3rd quarter worth about $1,928,000. Heritage Family Offices LLP bought a new stake in Credo Technology Group during the third quarter worth $87,000. Finally, Ariose Capital Management Ltd purchased a new position in Credo Technology Group in the third quarter valued at about $1,130,000. 80.46% of the stock is 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.