Credo Technology Group (NASDAQ:CRDO) Shares Gap Up – Should You Buy?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) gapped up before the market opened on Friday. The stock had previously closed at $112.33, but opened at $124.73. Credo Technology Group shares last traded at $118.8970, with a volume of 2,384,498 shares trading hands.

Analyst Upgrades and Downgrades

A number of brokerages have commented on CRDO. Stifel Nicolaus decreased their target price on Credo Technology Group from $350.00 to $310.00 and set a “buy” rating for the company in a research note on Monday, October 5th. Zacks Research downgraded shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. Bank of America decreased their target price 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. Barclays upped their price target on Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a report on Monday, July 20th. Finally, Weiss Ratings lowered shares of Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, October 6th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, Credo Technology Group has an average rating of “Moderate Buy” and a consensus price target of $262.67.

Credo Technology Group Stock Performance

The company’s 50 day moving average price is $181.07 and its 200 day moving average price is $180.45. The company has a market cap of $22.36 billion, a price-to-earnings ratio of 42.74, a price-to-earnings-growth ratio of 0.54 and a beta of 3.29.

Credo Technology Group (NASDAQ:CRDO) last announced its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.03. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%. The company had revenue of $479.00 million during the quarter, compared to analysts’ expectations of $473.30 million. During the same quarter in the previous year, the firm earned $0.52 earnings per share. The business’s quarterly revenue was up 114.7% compared to the same quarter last year. On average, equities research analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Insider Activity at Credo Technology Group

In other news, CEO William Brennan sold 16,666 shares of the firm’s stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $174.87, for a total value of $2,914,383.42. Following the sale, the chief executive officer directly owned 1,584,164 shares of the company’s stock, valued at approximately $277,022,758.68. This trade represents a 1.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James Laufman sold 5,000 shares of the firm’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 completion of the sale, the insider directly owned 164,223 shares in the company, valued at $33,665,715. This trade represents a 2.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 352,538 shares of company stock valued at $67,200,077. 9.06% of the stock is owned by corporate insiders.

Institutional Trading of Credo Technology Group

A number of institutional investors and hedge funds have recently modified their holdings of CRDO. Bank of America Corp DE raised its stake in shares of Credo Technology Group by 13.7% in the 2nd quarter. Bank of America Corp DE now owns 2,182,764 shares of the company’s stock valued at $593,603,000 after buying an additional 262,479 shares in the last quarter. Atreides Management LP grew its position in Credo Technology Group by 3.5% during the 2nd quarter. Atreides Management LP now owns 1,129,285 shares of the company’s stock worth $307,109,000 after acquiring an additional 38,052 shares during the last quarter. Pictet Asset Management Holding SA increased its stake in shares of Credo Technology Group by 222.5% in the third quarter. Pictet Asset Management Holding SA now owns 740,487 shares of the company’s stock valued at $144,170,000 after buying an additional 510,905 shares in the last quarter. The Manufacturers Life Insurance Company raised its stake in shares of Credo Technology Group by 192.1% in the first quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company’s stock worth $98,290,000 after acquiring an additional 688,596 shares during the last quarter. Finally, Value Aligned Research Advisors LLC bought a new position in Credo Technology Group in the 2nd quarter worth approximately $91,919,000. 80.46% of the stock is currently owned by institutional investors.

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.