Credo Technology Group (NASDAQ:CRDO) Shares Gap Up – Should You Buy?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares gapped up before the market opened on Monday . The stock had previously closed at $259.90, but opened at $274.44. Credo Technology Group shares last traded at $274.7160, with a volume of 1,298,285 shares trading hands.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on CRDO. Stifel Nicolaus upped their price objective on shares of Credo Technology Group from $250.00 to $350.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. TD Cowen lifted their target price on shares of Credo Technology Group from $240.00 to $260.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. The Goldman Sachs Group reissued a “buy” rating and issued a $250.00 target price on shares of Credo Technology Group in a research report on Tuesday, June 2nd. Wall Street Zen cut Credo Technology Group from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Finally, Mizuho lifted their price objective on Credo Technology Group from $260.00 to $290.00 and gave the company an “outperform” rating in a research note on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Credo Technology Group currently has an average rating of “Moderate Buy” and an average target price of $266.17.

Credo Technology Group Price Performance

The company’s 50 day moving average price is $241.19 and its 200 day moving average price is $178.89. The firm has a market cap of $52.63 billion, a PE ratio of 113.76, a price-to-earnings-growth ratio of 1.19 and a beta of 3.23.

Credo Technology Group (NASDAQ:CRDO) last announced its quarterly earnings data on Monday, June 1st. The company reported $1.16 earnings per share for the quarter, beating analysts’ consensus estimates of $1.02 by $0.14. The firm had revenue of $437.00 million during the quarter, compared to analysts’ expectations of $431.80 million. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The business’s quarterly revenue was up 157.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.20 earnings per share. Sell-side analysts expect that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current fiscal year.

Insider Buying and Selling at Credo Technology Group

In related news, CEO William Joseph Brennan sold 54,984 shares of Credo Technology Group stock in a transaction on Friday, June 5th. The stock was sold at an average price of $218.57, for a total value of $12,017,852.88. Following the completion of the transaction, the chief executive officer directly owned 367,327 shares in the company, valued at approximately $80,286,662.39. This trade represents a 13.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Daniel W. Fleming sold 40,000 shares of Credo Technology Group stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $249.48, for a total value of $9,979,200.00. Following the completion of the transaction, the chief financial officer owned 501,873 shares of the company’s stock, valued at approximately $125,207,276.04. This trade represents a 7.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 435,076 shares of company stock worth $101,043,506. 11.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Credo Technology Group

Several large investors have recently bought and sold shares of CRDO. FengHe Fund Management Pte. Ltd. lifted its holdings in shares of Credo Technology Group by 5.7% in the 4th quarter. FengHe Fund Management Pte. Ltd. now owns 162,269 shares of the company’s stock valued at $23,349,000 after purchasing an additional 8,769 shares during the last quarter. M&T Bank Corp grew its stake in Credo Technology Group by 428.8% during the 4th quarter. M&T Bank Corp now owns 13,427 shares of the company’s stock worth $1,932,000 after buying an additional 10,888 shares during the last quarter. California State Teachers Retirement System grew its stake in Credo Technology Group by 2.2% during the 1st quarter. California State Teachers Retirement System now owns 240,886 shares of the company’s stock worth $22,612,000 after buying an additional 5,113 shares during the last quarter. Teacher Retirement System of Texas increased its position in Credo Technology Group by 486.2% during the fourth quarter. Teacher Retirement System of Texas now owns 239,721 shares of the company’s stock worth $34,493,000 after buying an additional 198,826 shares during the period. Finally, TimesSquare Capital Management LLC increased its position in Credo Technology Group by 5.5% during the fourth quarter. TimesSquare Capital Management LLC now owns 264,181 shares of the company’s stock worth $38,013,000 after buying an additional 13,881 shares during the period. Hedge funds and other institutional investors own 80.46% of the company’s stock.

Credo Technology Group Company Profile

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.