Credo Technology Group (NASDAQ:CRDO) Shares Gap Up – Still a Buy?

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.

Wall Street Analysts Forecast Growth

CRDO has been the subject of several recent analyst reports. Stifel Nicolaus set a $200.00 target price on Credo Technology Group in a research note on Tuesday, March 3rd. Wolfe Research set a $240.00 target price on shares of Credo Technology Group in a report on Tuesday, December 2nd. Mizuho cut their price target on shares of Credo Technology Group from $225.00 to $200.00 and set an “outperform” rating on the stock in a research note on Tuesday, March 3rd. Needham & Company LLC restated a “buy” rating and issued a $220.00 price objective on shares of Credo Technology Group in a research note on Tuesday, March 3rd. Finally, KGI Securities raised Credo Technology Group from a “hold” rating to an “outperform” rating and set a $230.00 price objective on the stock in a report on Tuesday, December 2nd. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus target price of $206.33.

Credo Technology Group Stock Performance

The company has a 50-day moving average of $126.29 and a 200-day moving average of $143.24. The stock has a market cap of $20.21 billion, a price-to-earnings ratio of 61.03 and a beta of 2.67.

Credo Technology Group (NASDAQ:CRDO) last released its earnings results on Monday, March 2nd. The company reported $1.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.78 by $0.29. Credo Technology Group had a return on equity of 29.63% and a net margin of 31.81%.The business had revenue of $407.01 million for the quarter, compared to analyst estimates of $385.94 million. During the same quarter in the previous year, the company posted $0.25 earnings per share. The company’s revenue for the quarter was up 201.5% compared to the same quarter last year. As a group, equities research analysts forecast that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Insider Buying and Selling at Credo Technology Group

In other news, CTO Chi Fung Cheng sold 55,000 shares of the business’s stock in a transaction dated 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 transaction, the chief technology officer directly owned 6,448,961 shares in the company, valued at $924,845,497.01. The trade was a 0.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO William Joseph Brennan sold 50,000 shares of the stock in a transaction dated 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 transaction, the chief executive officer directly owned 1,832,502 shares of the company’s stock, valued at $233,992,180.38. This represents a 2.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 463,601 shares of company stock worth $62,835,745 over the last three months. 11.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Credo Technology Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in CRDO. Atlantic Union Bankshares Corp purchased a new stake in shares of Credo Technology Group in the third quarter valued at approximately $25,000. Crewe Advisors LLC raised its position in Credo Technology Group by 163.1% in the fourth quarter. Crewe Advisors LLC now owns 171 shares of the company’s stock worth $25,000 after acquiring an additional 106 shares in the last quarter. Reflection Asset Management acquired a new stake in Credo Technology Group in the fourth quarter valued at $25,000. Acumen Wealth Advisors LLC acquired a new stake in Credo Technology Group in the fourth quarter valued at $25,000. Finally, First Horizon Corp purchased a new stake in shares of Credo Technology Group during the 3rd quarter worth $26,000. Institutional investors and hedge funds 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.