Credo Technology Group (NASDAQ:CRDO) Shares Gap Up – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price gapped up prior to trading on Tuesday . The stock had previously closed at $116.88, but opened at $122.59. Credo Technology Group shares last traded at $111.8270, with a volume of 3,747,471 shares trading hands.

Analysts Set New Price Targets

A number of equities analysts have commented on CRDO shares. KGI Securities raised Credo Technology Group from a “hold” rating to an “outperform” rating and set a $230.00 target price for the company in a report on Tuesday, December 2nd. Susquehanna reduced their price objective on Credo Technology Group from $230.00 to $170.00 and set a “positive” rating for the company in a research note on Tuesday, March 3rd. TD Cowen restated a “buy” rating on shares of Credo Technology Group in a report on Tuesday, December 2nd. Needham & Company LLC reaffirmed a “buy” rating and set a $220.00 target price on shares of Credo Technology Group in a research note on Tuesday, March 3rd. Finally, Wolfe Research set a $240.00 target price on shares of Credo Technology Group in a research report on Tuesday, December 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $206.33.

Credo Technology Group Trading Down 6.3%

The firm’s fifty day moving average price is $126.29 and its 200 day moving average price is $143.24. The stock has a market capitalization of $20.21 billion, a price-to-earnings ratio of 61.03 and a beta of 2.67.

Credo Technology Group (NASDAQ:CRDO) last posted its earnings results on Monday, March 2nd. The company reported $1.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.78 by $0.29. The firm had revenue of $407.01 million for the quarter, compared to analyst estimates of $385.94 million. Credo Technology Group had a return on equity of 29.63% and a net margin of 31.81%.Credo Technology Group’s revenue was up 201.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.25 EPS. On average, analysts forecast that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current fiscal year.

Insider Activity at Credo Technology Group

In other Credo Technology Group news, CTO Chi Fung Cheng sold 55,000 shares of the stock in a transaction that occurred on Monday, December 29th. The shares were sold at an average price of $143.41, for a total transaction of $7,887,550.00. Following the sale, the chief technology officer directly owned 6,448,961 shares in the company, valued at $924,845,497.01. This represents a 0.85% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO William Joseph Brennan sold 50,000 shares of the business’s stock in a transaction on Thursday, January 29th. The stock was sold at an average price of $127.69, for a total transaction of $6,384,500.00. Following the completion of the transaction, the chief executive officer owned 1,832,502 shares of the company’s stock, valued at approximately $233,992,180.38. This trade represents a 2.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 463,601 shares of company stock valued at $62,835,745. Insiders own 11.84% 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. Spear Advisors LLC acquired a new stake in Credo Technology Group in the fourth quarter valued at approximately $11,705,000. World Investment Advisors grew its holdings in Credo Technology Group by 77.5% during the 4th quarter. World Investment Advisors now owns 2,870 shares of the company’s stock worth $413,000 after acquiring an additional 1,253 shares in the last quarter. Corient Private Wealth LLC increased its position in shares of Credo Technology Group by 1,665.6% in the 4th quarter. Corient Private Wealth LLC now owns 26,573 shares of the company’s stock valued at $3,824,000 after purchasing an additional 25,068 shares during the last quarter. Reflection Asset Management purchased a new stake in shares of Credo Technology Group during the 4th quarter worth $25,000. Finally, Clearwave Capital LLC acquired a new position in shares of Credo Technology Group during the fourth quarter worth $708,000. Hedge funds and other institutional investors own 80.46% of the company’s stock.

About Credo Technology Group

Credo Technology Group, Inc (NASDAQ: CRDO) is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo’s product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.