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

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price gapped up prior to trading on Wednesday. The stock had previously closed at $171.51, but opened at $184.09. Credo Technology Group shares last traded at $183.9410, with a volume of 1,494,768 shares.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CRDO. Zacks Research cut Credo Technology Group from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. Weiss Ratings cut Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, October 6th. JPMorgan Chase & Co. lowered their price target on Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating for the company in a research note on Wednesday, September 2nd. TD Cowen increased their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the company a “buy” rating in a research report on Tuesday, August 18th. Finally, Rosenblatt Securities reissued a “neutral” rating and set a $235.00 price objective on shares of Credo Technology Group in a research note on Thursday, October 15th. One equities 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. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $262.67.

Credo Technology Group Stock Performance

The company has a market cap of $34.39 billion, a P/E ratio of 65.18, a PEG ratio of 0.69 and a beta of 3.25. The company has a fifty day moving average price of $201.57 and a two-hundred day moving average price of $206.74.

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

Insiders Place Their Bets

In other news, CTO Chi Cheng sold 27,500 shares of the company’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total value of $5,333,075.00. Following the sale, the chief technology officer directly owned 5,662,397 shares of the company’s stock, valued at approximately $1,098,108,650.21. This represents a 0.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 55,441 shares of the company’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $213.02, for a total value of $11,810,041.82. Following the completion of the sale, the chief operating officer owned 2,529,169 shares in the company, valued at $538,763,580.38. This represents a 2.15% 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. Over the last 90 days, insiders have sold 441,286 shares of company stock worth $88,910,653. 9.06% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Credo Technology Group

Several hedge funds have recently added to or reduced their stakes in CRDO. Reflection Asset Management acquired a new position in Credo Technology Group in the 4th quarter valued at about $25,000. Orion Capital Management LLC bought a new position in Credo Technology Group during the 2nd quarter worth $27,000. AlphaCentric Advisors LLC bought a new stake in shares of Credo Technology Group in the first quarter valued at about $33,000. Burkett Financial Services LLC acquired a new stake in Credo Technology Group in the 3rd quarter worth about $33,000. Finally, Western Wealth Management LLC acquired a new stake in shares of Credo Technology Group in the first quarter valued at approximately $38,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

Credo Technology Group Company Profile

Credo Technology Group Holding Ltd. is a fabless semiconductor and connectivity solutions company that develops high-speed data-infrastructure technologies. Its products are designed to help data centers and communications networks move large volumes of information with lower power consumption and improved signal integrity.

The company’s portfolio includes serializer/deserializer (SerDes) intellectual property, application-specific integrated circuits, active electrical cables, optical digital signal processors and related connectivity platforms.