Credo Technology Group (NASDAQ:CRDO) Stock Price Up 13.3% – Still a Buy?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares shot up 13.3% during mid-day trading on Thursday . The company traded as high as $201.35 and last traded at $201.08. Approximately 6,865,355 shares were traded during mid-day trading, a decline of 10% from the average session volume of 7,629,842 shares. The stock had previously closed at $177.45.

More Credo Technology Group News

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

• Positive Sentiment: Credo was added to Zacks’ Rank #1 (Strong Buy) growth-stock list for July 30, reinforcing favorable short-term analyst sentiment. Best Growth Stocks to Buy for July 30th
• Positive Sentiment: A Seeking Alpha analysis said the recent CRDO sell-off appears overblown, citing the company’s growth prospects tied to AI data-center connectivity and suggesting the weakness could offer an attractive entry point. Credo Stock Sell-Off Looks Overblown
• Positive Sentiment: Credo’s latest reported quarter showed 157% year-over-year revenue growth, earnings and revenue above consensus, a 35.37% net margin, and $1.16 in EPS versus the $1.02 estimate. These results continue to support the long-term growth narrative.
• Neutral Sentiment: CTO Chi Fung Cheng sold 27,500 shares for approximately $5.65 million at an average price of $205.54. The transaction was executed under a pre-arranged Rule 10b5-1 plan and reduced his holdings by only 0.47%; he still owns roughly 5.8 million shares. SEC insider transaction filing
• Negative Sentiment: The CTO has made multiple scheduled sales since June, including another 27,500-share sale on July 21. Although these trades may be routine, the repeated insider selling can weigh on sentiment after CRDO’s substantial advance.
• Negative Sentiment: Technical and valuation concerns remain: the stock has recently traded well below its 50-day moving average and carries a high earnings multiple, leaving it vulnerable to profit-taking across AI and semiconductor stocks.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Susquehanna upped their price objective on shares of Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a report on Tuesday, July 21st. Stifel Nicolaus lifted their target price on shares of Credo Technology Group from $250.00 to $350.00 and gave the stock a “buy” rating in a research note on Monday, June 22nd. Evercore initiated coverage on shares of Credo Technology Group in a report on Monday, June 22nd. They set an “outperform” rating and a $325.00 price target for the company. The Goldman Sachs Group reaffirmed a “buy” rating and set a $250.00 price target on shares of Credo Technology Group in a research report on Tuesday, June 2nd. Finally, TD Cowen increased their price objective on Credo Technology Group from $240.00 to $260.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus target price of $266.17.

Credo Technology Group Price Performance

The company has a market cap of $37.50 billion, a PE ratio of 81.08, a price-to-earnings-growth ratio of 0.88 and a beta of 3.20. The company’s 50 day simple moving average is $236.68 and its two-hundred day simple moving average is $171.23.

Credo Technology Group (NASDAQ:CRDO) last released its quarterly earnings results on Monday, June 1st. The company reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.02 by $0.14. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The business had revenue of $437.00 million for the quarter, compared to the consensus estimate of $431.80 million. During the same period in the previous year, the firm earned $0.20 EPS. The business’s revenue was up 157.0% on a year-over-year basis. Sell-side analysts expect that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current fiscal year.

Insider Activity at Credo Technology Group

In related news, CFO Daniel W. Fleming sold 7,580 shares of the business’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $245.88, for a total value of $1,863,770.40. Following the sale, the chief financial officer owned 504,708 shares in the company, valued at approximately $124,097,603.04. The trade was a 1.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $205.54, for a total value of $5,652,350.00. Following the completion of the transaction, the chief technology officer directly owned 5,799,870 shares of the company’s stock, valued at approximately $1,192,105,279.80. This represents a 0.47% decrease in their ownership of the stock. 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. Insiders sold a total of 329,662 shares of company stock valued at $77,732,771 in the last quarter. 11.84% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Crewe Advisors LLC lifted its holdings in Credo Technology Group by 163.1% during the 4th quarter. Crewe Advisors LLC now owns 171 shares of the company’s stock worth $25,000 after buying an additional 106 shares in the last quarter. Reflection Asset Management acquired a new stake in shares of Credo Technology Group in the fourth quarter valued at $25,000. Acumen Wealth Advisors LLC acquired a new position in Credo Technology Group during the 4th quarter worth $25,000. Flagship Harbor Advisors LLC acquired a new stake in Credo Technology Group in the 4th quarter valued at about $32,000. Finally, AlphaCentric Advisors LLC acquired a new position in shares of Credo Technology Group during the first quarter worth about $33,000. Hedge funds and other institutional investors own 80.46% of the company’s stock.

Credo Technology Group Company Profile

Credo Technology Group, Inc (NASDAQ: CRDO) is a fabless semiconductor company that develops high?speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low?latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo’s product portfolio centers on high?speed analog and mixed?signal devices designed to preserve signal integrity and extend reach over copper and optical links.