Credo Technology Group (NASDAQ:CRDO) Shares Climb 8.9% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares rose 8.9% during trading on Wednesday. The company traded as high as $148.19 and last traded at $141.41. Approximately 8,146,755 shares were traded during mid-day trading, an increase of 6% from the average session volume of 7,693,591 shares. The stock had previously closed at $129.80.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on CRDO shares. Weiss Ratings cut Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, October 6th. Rosenblatt Securities reiterated a “neutral” rating and issued a $235.00 target price on shares of Credo Technology Group in a research note on Thursday, October 15th. Susquehanna upped their target price on shares of Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Evercore set a $292.00 target price on shares of Credo Technology Group in a research note on Wednesday, September 2nd. Finally, Bank of America reduced their price target on shares of Credo Technology Group from $340.00 to $275.00 and set a “buy” rating on the stock in a research report on Wednesday, September 2nd. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $262.67.

Credo Technology Group Stock Performance

The firm has a market capitalization of $24.78 billion, a price-to-earnings ratio of 46.55, a P/E/G ratio of 0.56 and a beta of 3.29. The business’s 50-day moving average is $172.93 and its two-hundred day moving average is $180.33.

Credo Technology Group (NASDAQ:CRDO) last posted its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.03. The firm had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%. The company’s revenue for the quarter was up 114.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.52 earnings per share. Analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Insiders Place Their Bets

In other news, insider James Laufman sold 5,000 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $205.00, for a total value of $1,025,000.00. Following the transaction, the insider owned 164,223 shares in the company, valued at approximately $33,665,715. The trade was a 2.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Pantas Sutardja sold 1,540 shares of the stock in a transaction on Monday, October 12th. The stock was sold at an average price of $212.22, for a total transaction of $326,818.80. Following the sale, the director owned 5,890,494 shares of the company’s stock, valued at approximately $1,250,080,636.68. This trade represents a 0.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 352,538 shares of company stock valued at $67,200,077 over the last three months. Insiders own 9.06% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Orion Capital Management LLC acquired a new stake in Credo Technology Group in the 2nd quarter valued at $27,000. Hoey Investments Inc. purchased a new position in shares of Credo Technology Group during the 3rd quarter valued at about $31,000. Burkett Financial Services LLC bought a new stake in Credo Technology Group in the third quarter valued at approximately $33,000. Thurston Springer Miller Herd & Titak Inc. boosted its holdings in Credo Technology Group by 4,900.0% in the third quarter. Thurston Springer Miller Herd & Titak Inc. now owns 200 shares of the company’s stock valued at $39,000 after acquiring an additional 196 shares in the last quarter. Finally, Alpine Bank Wealth Management bought a new position in shares of Credo Technology Group during the third quarter valued at approximately $40,000. 80.46% of the stock is owned by institutional investors and hedge funds.

About Credo Technology Group

Credo Technology Group designs and supplies high-speed connectivity solutions for data infrastructure, including data centers and networking systems. Its products help move data between processors, servers, switches and other equipment used in demanding, high-bandwidth environments. The company’s offerings include active electrical cables, semiconductor and optical digital signal processing products, retimers, and other connectivity components. These solutions are used in applications such as cloud computing and artificial intelligence infrastructure.