Credo Technology Group (NASDAQ:CRDO) Shares Climb 4% – Still a Buy?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price shot up 4% during mid-day trading on Friday. The stock traded as high as $231.59 and last traded at $218.64. 10,552,856 shares traded hands during mid-day trading, an increase of 40% from the average session volume of 7,534,299 shares. The stock had previously closed at $210.17.

Key Credo Technology Group News

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Credo’s high-speed connectivity products are positioned to benefit as AI infrastructure spending expands beyond processors to the networking and cabling required to connect large data-center clusters. Recent coverage highlights the company as a potential beneficiary of this next phase of AI investment. AI Spending Is Entering Its Next Phase
• Positive Sentiment: Credo’s latest quarterly results continue to support the bullish growth narrative: revenue rose 114.7% year over year to $479 million, while earnings of $1.20 per share exceeded the $1.17 consensus estimate. Momentum-focused coverage notes that the stock has gained since the report and is attracting continued investor interest. Credo Strong Momentum Stock
• Positive Sentiment: Sell-side sentiment remains favorable, with Credo carrying a “Moderate Buy” consensus rating and an average analyst price target of $264.89. This provides a positive backdrop for the shares, although the stock’s elevated valuation means continued execution is important. Credo Moderate Buy Rating
• Neutral Sentiment: CTO Chi Cheng sold 27,500 shares for approximately $5.3 million under a pre-arranged Rule 10b5-1 trading plan. The sale reduced his ownership by only 0.48%, limiting its significance because it was planned and he retains a substantial stake. CTO Insider Sale
• Negative Sentiment: Additional planned sales by Credo’s COO involving 100,000 shares, along with a previously reported CEO sale worth about $2.5 million, could weigh on sentiment by signaling that executives are taking profits. These transactions do not necessarily indicate deteriorating business conditions, but they add selling pressure around a richly valued, volatile stock. Credo COO Planned Sale

Analyst Ratings Changes

CRDO has been the subject of a number of recent research reports. TD Cowen boosted their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock 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 note on Wednesday, September 2nd. JPMorgan Chase & Co. reduced their price target on Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating for the company in a research report on Wednesday, September 2nd. Weiss Ratings raised shares of Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, September 18th. Finally, Barclays boosted their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an “overweight” rating in a report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $264.89.

Credo Technology Group Stock Performance

The business has a 50-day simple moving average of $207.10 and a 200-day simple moving average of $197.87. The company has a market cap of $41.09 billion, a price-to-earnings ratio of 77.81, a price-to-earnings-growth ratio of 0.78 and a beta of 3.25.

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, topping analysts’ consensus estimates 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 period last year, the firm posted $0.52 earnings per share. Research analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Insider Buying and Selling at Credo Technology Group

In other news, CTO Chi Cheng sold 27,500 shares of Credo Technology Group stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $205.54, for a total transaction of $5,652,350.00. Following the completion of the sale, the chief technology officer directly owned 5,799,870 shares in the company, valued at $1,192,105,279.80. The trade was a 0.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 55,441 shares of the stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $213.02, for a total value of $11,810,041.82. Following the transaction, the chief operating officer owned 2,529,169 shares in the company, valued at $538,763,580.38. This trade represents a 2.15% 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. Insiders have sold 434,746 shares of company stock valued at $89,424,859 in the last three months. 9.06% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. GoalVest Advisory LLC raised its holdings in shares of Credo Technology Group by 49,226.5% in the 3rd quarter. GoalVest Advisory LLC now owns 24,170 shares of the company’s stock worth $4,708,000 after purchasing an additional 24,121 shares during the period. Burkett Financial Services LLC acquired a new position in Credo Technology Group during the third quarter valued at approximately $33,000. QRG Capital Management Inc. grew its stake in Credo Technology Group by 20.8% during the second quarter. QRG Capital Management Inc. now owns 6,527 shares of the company’s stock worth $1,774,000 after buying an additional 1,125 shares during the period. Envestnet Portfolio Solutions Inc. acquired a new stake in shares of Credo Technology Group in the second quarter worth $548,000. Finally, Envestnet Asset Management Inc. raised its stake in shares of Credo Technology Group by 14.6% in the 2nd quarter. Envestnet Asset Management Inc. now owns 174,376 shares of the company’s stock valued at $47,421,000 after acquiring an additional 22,181 shares during the period. 80.46% of the stock is owned by hedge funds and other institutional investors.

About Credo Technology Group

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for data infrastructure. Its technologies are designed to improve the performance, power efficiency and reliability of connections used in cloud computing, artificial intelligence, high-performance computing, telecommunications and enterprise networks.

The company’s product portfolio includes serializer/deserializer (SerDes) intellectual property, integrated circuits, active electrical cables and optical connectivity products.