Credo Technology Group (NASDAQ:CRDO) Shares Climb 1.3% – Still a Buy?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares were up 1.3% during mid-day trading on Wednesday. The company traded as high as $195.56 and last traded at $194.79. 5,972,370 shares traded hands during mid-day trading, a decline of 20% from the average session volume of 7,505,748 shares. The stock had previously closed at $192.35.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CRDO. Wall Street Zen lowered shares of Credo Technology Group from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Barclays boosted their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an “overweight” rating in a research report on Monday, July 20th. Zacks Research downgraded Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. The Goldman Sachs Group reissued a “buy” rating and set a $250.00 price objective on shares of Credo Technology Group in a report on Tuesday, June 2nd. Finally, Bank of America lowered their price objective on Credo Technology Group from $340.00 to $275.00 and set a “buy” rating for the company in a research note on Wednesday, September 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $264.89.

Credo Technology Group Stock Up 1.3%

The company has a market capitalization of $36.61 billion, a P/E ratio of 69.32, a price-to-earnings-growth ratio of 0.77 and a beta of 3.22. The business’s 50-day moving average is $208.30 and its two-hundred day moving average is $196.63.

Credo Technology Group (NASDAQ:CRDO) last issued its quarterly earnings data 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. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The business had revenue of $479.00 million during the quarter, compared to the consensus estimate of $473.30 million. During the same period in the prior year, the firm posted $0.52 EPS. The firm’s quarterly revenue was up 114.7% compared to the same quarter last year. Analysts predict that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Insider Transactions at Credo Technology Group

In related news, insider James Laufman sold 5,000 shares of Credo Technology Group stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $185.00, for a total value of $925,000.00. Following the completion of the sale, the insider owned 169,223 shares of the company’s stock, valued at approximately $31,306,255. This trade represents a 2.87% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CTO Chi Cheng sold 27,500 shares of the business’s stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $193.12, for a total value of $5,310,800.00. Following the completion of the sale, the chief technology officer owned 5,689,897 shares in the company, valued at $1,098,832,908.64. This represents a 0.48% 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. In the last three months, insiders have sold 357,246 shares of company stock valued at $73,830,784. Corporate insiders own 9.06% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CRDO. QRG Capital Management Inc. boosted its holdings in shares of Credo Technology Group by 20.8% in the second quarter. QRG Capital Management Inc. now owns 6,527 shares of the company’s stock worth $1,774,000 after acquiring an additional 1,125 shares during the period. Envestnet Portfolio Solutions Inc. purchased a new position in Credo Technology Group during the 2nd quarter valued at about $548,000. Envestnet Asset Management Inc. increased its position in shares of 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 buying an additional 22,181 shares during the period. Sequoia Financial Advisors LLC lifted its holdings in shares of Credo Technology Group by 19.0% in the second quarter. Sequoia Financial Advisors LLC now owns 6,659 shares of the company’s stock worth $1,811,000 after buying an additional 1,063 shares in the last quarter. Finally, IPG Investment Advisors LLC purchased a new position in Credo Technology Group during the second quarter valued at approximately $3,078,000. 80.46% of the stock is currently 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.