Credo Technology Group (NASDAQ:CRDO) Shares Climb 7.9% – Still a Buy?

by · The Markets Daily

Credo Technology Group Holding Ltd. (NASDAQ:CRDO – Get Free Report)’s share price rose 7.9% during mid-day trading on Thursday. The stock traded as high as $211.05 and last traded at $210.17. Approximately 9,351,566 shares changed hands during trading, an increase of 25% from the average session volume of 7,507,052 shares. The stock had previously closed at $194.79.

Key Credo Technology Group News

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

  • Positive Sentiment: Credo’s investment case is being supported by robust AI spending. Analysts note that data-center investment is expanding beyond computing power to the connectivity, cabling and optical systems needed to link large AI clusters. The company recently reported triple-digit year-over-year revenue growth, strengthening expectations for continued demand. AI Spending Is Entering Its Next Phase. This Stock Could Benefit Most
  • Positive Sentiment: Recent coverage highlights Credo’s strong operating momentum, including quarterly revenue of $479 million, up 114.7% from the prior year, and earnings of $1.20 per share versus the $1.17 consensus estimate. Its optical-connectivity products and relationships with major hyperscalers are viewed as potential drivers of additional growth. Credo: Opportunity Is Knocking
  • Positive Sentiment: Momentum-focused research remains constructive. Credo has risen 17.9% since its latest earnings report, while sell-side analysts maintain a “Moderate Buy” consensus and an average price target of $264.89. Commentary also suggests the stock could eventually challenge prior highs if earnings estimates continue to improve. Credo Technology Group Stock Rated Moderate Buy
  • Neutral Sentiment: Coverage comparing Credo with Arm presents the stock as a higher-growth but potentially higher-risk AI infrastructure investment. Credo’s opportunity is tied to fast-growing data-center connectivity demand, while its elevated valuation and high volatility remain important considerations. Arm vs. Credo Technology Group
  • Negative Sentiment: Several executives have sold shares, including CTO Chi Cheng’s sale of 27,500 shares and COO Yat Tung Lam’s sale of 50,000 shares. The transactions were conducted under pre-arranged Rule 10b5-1 plans, and both executives retained substantial positions, which limits—but does not eliminate—the negative signal from insider selling. Credo Technology Group Insider Selling

Wall Street Analyst Weigh In

CRDO has been the topic of a number of research analyst reports. Mizuho cut their target price on shares of Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating on the stock in a research report on Monday, September 21st. Evercore set a $292.00 price target on Credo Technology Group in a research note on Wednesday, September 2nd. Barclays raised their price objective on Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a report on Monday, July 20th. Susquehanna boosted their price objective on Credo Technology Group from $235.00 to $250.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. Finally, Zacks Research cut Credo Technology Group from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. 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 stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $264.89.

Read Our Latest Report on Credo Technology Group

Credo Technology Group Trading Up 7.9%

The business’s 50-day simple moving average is $207.63 and its two-hundred day simple moving average is $197.22. The firm has a market cap of $39.50 billion, a price-to-earnings ratio of 74.79, a P/E/G ratio of 0.77 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO – Get Free Report) last issued 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 firm had revenue of $479.00 million during the quarter, compared to the consensus estimate of $473.30 million. During the same period last year, the business posted $0.52 EPS. The business’s revenue was up 114.7% compared to the same quarter last year. On average, analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Insider Buying and Selling at Credo Technology Group

In other news, insider James Laufman sold 5,000 shares of the business’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $185.00, for a total transaction of $925,000.00. Following the completion of the sale, the insider directly owned 169,223 shares of the company’s stock, valued at $31,306,255. The trade was a 2.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO William Brennan sold 16,672 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $151.88, for a total transaction of $2,532,143.36. Following the completion of the transaction, the chief executive officer directly owned 1,600,830 shares in the company, valued at approximately $243,134,060.40. The trade was 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 90 days, insiders have sold 384,746 shares of company stock worth $79,163,859. Company insiders own 9.06% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. QRG Capital Management Inc. raised its position in Credo Technology Group by 20.8% in the 2nd quarter. QRG Capital Management Inc. now owns 6,527 shares of the company’s stock valued at $1,774,000 after buying an additional 1,125 shares during the last quarter. Envestnet Portfolio Solutions Inc. bought a new stake in Credo Technology Group in the 2nd quarter worth about $548,000. Envestnet Asset Management Inc. increased its stake in Credo Technology Group by 14.6% in the 2nd 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 last quarter. Sequoia Financial Advisors LLC boosted its stake in shares of Credo Technology Group by 19.0% in the 2nd 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 during the last quarter. Finally, IPG Investment Advisors LLC bought a new position in shares of Credo Technology Group in the second quarter valued at approximately $3,078,000. Hedge funds and other institutional investors own 80.46% of the company’s stock.

About Credo Technology Group

(Get Free Report)

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.

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