Credo Technology Group (NASDAQ:CRDO) Stock Price Up 1.3% – Still a Buy?

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

Credo Technology Group News Summary

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

• Positive Sentiment: Analysts and market commentators see Credo as a beneficiary of the next phase of AI infrastructure spending, which is increasingly focused on high-speed connectivity and networking equipment linking large data-center clusters. AI Spending Is Entering Its Next Phase
• Positive Sentiment: Credo’s latest quarterly results remain a key bullish factor: revenue climbed 114.7% year over year to $479 million, exceeding expectations, while earnings per share of $1.20 topped the $1.17 consensus estimate. Coverage also points to strong demand from hyperscale customers and expansion into optical connectivity products. Credo Momentum Analysis
• Positive Sentiment: Sell-side sentiment is broadly constructive. Credo carries a “Moderate Buy” consensus rating and an average analyst price target of $264.89, above the reported trading level. Recent commentary also describes CRDO as a strong momentum stock and suggests it could retest prior highs. 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 plan. The sale reduced his ownership by only 0.48%, and he still held more than 5.6 million shares afterward, limiting its significance. SEC Insider Sale Filing
• Negative Sentiment: The COO reportedly sold 100,000 shares in a planned transaction, while the CEO previously sold approximately $2.5 million of stock. Although these transactions may be scheduled portfolio diversification, several executive disposals can weigh on investor sentiment, particularly with CRDO trading at a high valuation and remaining highly volatile. Credo COO Planned Sale

Analysts Set New Price Targets

Several analysts recently commented on CRDO shares. Wall Street Zen lowered shares of Credo Technology Group from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Barclays raised 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. TD Cowen upped their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock a “buy” rating in a research report on Tuesday, August 18th. Stifel Nicolaus upped their price objective on Credo Technology Group from $250.00 to $350.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. Finally, Bank of America decreased their price objective on shares of Credo Technology Group from $340.00 to $275.00 and set a “buy” rating for the company in a report on Wednesday, September 2nd. One research 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’s stock. According to MarketBeat, Credo Technology Group has a consensus rating of “Moderate Buy” and a consensus price target of $264.89.

Credo Technology Group Stock Up 7.9%

The stock’s 50-day simple moving average is $207.10 and its 200 day simple moving average is $197.87. The stock has a market capitalization of $39.50 billion, a price-to-earnings ratio of 74.79, a price-to-earnings-growth 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, beating the consensus estimate of $1.17 by $0.03. The firm had revenue of $479.00 million during the quarter, compared to the consensus estimate of $473.30 million. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The business’s quarterly revenue was up 114.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.52 earnings per share. As a group, equities research analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Insider Activity

In other news, COO Yat Lam sold 50,000 shares of the business’s stock in a transaction on Friday, September 25th. The stock was sold at an average price of $206.30, for a total transaction of $10,315,000.00. Following the completion of the transaction, the chief operating officer owned 2,479,169 shares of the company’s stock, valued at approximately $511,452,564.70. The trade was a 1.98% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Brennan sold 16,672 shares of the company’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $151.88, for a total value of $2,532,143.36. Following the completion of the transaction, the chief executive officer directly owned 1,600,830 shares of the company’s stock, valued at $243,134,060.40. This represents a 1.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 384,746 shares of company stock worth $79,163,859. Insiders own 9.06% of the company’s stock.

Institutional Trading of Credo Technology Group

A number of hedge funds and other institutional investors have recently made changes to their positions in CRDO. California State Teachers Retirement System increased its holdings in shares of Credo Technology Group by 2.2% in the first quarter. California State Teachers Retirement System now owns 240,886 shares of the company’s stock worth $22,612,000 after buying an additional 5,113 shares during the period. Corsair Capital Management L.P. bought a new stake in Credo Technology Group during the first quarter valued at about $469,000. Lazard Asset Management LLC raised its position in shares of Credo Technology Group by 55.6% during the first quarter. Lazard Asset Management LLC now owns 67,051 shares of the company’s stock valued at $6,294,000 after buying an additional 23,949 shares during the last quarter. Quantinno Capital Management LP raised its position in Credo Technology Group by 68.4% during the first quarter. Quantinno Capital Management LP now owns 34,124 shares of the company’s stock valued at $3,203,000 after purchasing an additional 13,859 shares during the period. Finally, Estuary Capital Management LP boosted its position in Credo Technology Group by 87.4% in the 1st quarter. Estuary Capital Management LP now owns 412,227 shares of the company’s stock valued at $38,696,000 after buying an additional 192,218 shares during the period. 80.46% of the stock is currently owned by 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.