Credo Technology Group (NASDAQ:CRDO) Stock Jumps 4% – Still a Buy?

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

Trending Headlines about Credo Technology Group

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

Analysts Set New Price Targets

Several research firms recently commented on CRDO. Rosenblatt Securities boosted their price target on Credo Technology Group from $215.00 to $235.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 2nd. JPMorgan Chase & Co. reduced their target price on shares of Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating on the stock in a research report on Wednesday, September 2nd. Stifel Nicolaus raised their price target on shares of Credo Technology Group from $250.00 to $350.00 and gave the company a “buy” rating in a report on Monday, June 22nd. Barclays lifted their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an “overweight” rating in a research note on Monday, July 20th. Finally, Zacks Research lowered shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $264.89.

Credo Technology Group Stock Up 4.0%

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

Credo Technology Group (NASDAQ:CRDO) last issued its earnings results on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, topping the consensus estimate of $1.17 by $0.03. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%.The company had revenue of $479.00 million during the quarter, compared to analyst estimates of $473.30 million. During the same quarter last year, the firm earned $0.52 EPS. The business’s revenue was up 114.7% on a year-over-year basis. On average, equities research analysts expect that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Insider Buying and Selling at Credo Technology Group

In other Credo Technology Group news, CTO Chi Cheng sold 27,500 shares of the business’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total transaction of $5,333,075.00. Following the completion of the sale, the chief technology officer owned 5,662,397 shares in the company, valued at $1,098,108,650.21. The trade was a 0.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 50,000 shares of the stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $205.22, for a total transaction of $10,261,000.00. Following the sale, the chief operating officer owned 2,254,169 shares in the company, valued at approximately $462,600,562.18. This trade represents a 2.17% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 434,746 shares of company stock worth $89,424,859 in the last ninety days. 9.06% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. GoalVest Advisory LLC raised its stake 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 buying an additional 24,121 shares in the last quarter. Burkett Financial Services LLC acquired a new stake in Credo Technology Group in the 3rd quarter valued at about $33,000. QRG Capital Management Inc. grew its stake in shares of Credo Technology Group by 20.8% in the 2nd quarter. QRG Capital Management Inc. now owns 6,527 shares of the company’s stock worth $1,774,000 after purchasing an additional 1,125 shares during the last quarter. Envestnet Portfolio Solutions Inc. bought a new stake in shares of Credo Technology Group in the 2nd quarter worth approximately $548,000. Finally, Envestnet Asset Management Inc. lifted its stake in Credo Technology Group by 14.6% during the second quarter. Envestnet Asset Management Inc. now owns 174,376 shares of the company’s stock valued at $47,421,000 after purchasing an additional 22,181 shares during the last quarter. Institutional investors and hedge funds own 80.46% of the company’s stock.

Credo Technology Group Company Profile

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.