Credo Technology: Analyst Buy Rating Maintained Amid Insider Stock Sale

Credo Technology shares maintain Buy rating from TD Cowen By Investing.com

TD Cowen has reaffirmed its Buy rating on Credo Technology Group Holding Ltd. (NASDAQ: NASDAQ:CRDO) with a price target of $40.00. The firm's analyst highlighted the positive momentum across the company's product portfolio after reviewing the financial results from the first quarter of fiscal year 2025 and initiating coverage last Friday. The analyst noted the significant contribution of Application-Specific Integrated Circuits (ASICs) to the company's total revenue, and anticipated a revenue inflection in the second half of fiscal year 2025. The analyst's comments followed Credo Technology's fiscal first quarter 2025 earnings call, where the company's performance and future prospects were discussed. The analyst from TD Cowen expressed optimism about the company's potential for diversified revenue streams, as evidenced by the broadening engagement across its product offerings. Credo Technology's stock price target remains unchanged at $40.00, reflecting the analyst's confidence in the company's revenue growth trajectory. The endorser of the Buy rating emphasized the importance of the upcoming financial periods, indicating expectations for a notable increase in revenue during the second half of fiscal year 2025. The company, which specializes in providing high-performance, low-power connectivity solutions for 100G, 400G, and 800G port-enabled networks, is poised for growth as demand for its products continues. The analyst's statement underscores the belief that Credo Technology's diverse and expanding product portfolio will drive financial success in the near future. In other recent news, Credo Technology Group Holding Ltd. has been the subject of several significant developments. The company reported a robust start to fiscal 2025, with Q1 revenues reaching $59.7 million and a non-GAAP gross margin of 62.9%. This represents a substantial year-over-year revenue increase of 70%, largely due to expanding AI deployments. Market analysts at Craig-Hallum and Needham have raised their price targets for Credo Technology to $38.00 and $33.00 respectively, based on the company's strong financial performance and promising future guidance. Credo Technology's performance has been fueled by expectations of increased sales across a broader range of Advanced Ethernet Controllers and the growth of optical Digital Signal Processor sales. The company is also expected to make gains against passive copper solutions and strengthen its position in the DSP market. Additionally, Credo Technology plans to enter the 64 gig PAM4 PCIe Gen 6 market later this year, aiming to capitalize on the growing demand for higher bandwidth driven by AI applications. As Credo Technology Group Holding Ltd. (NASDAQ:CRDO) continues to navigate the competitive tech landscape, recent data from InvestingPro offers a nuanced view of the company's financial health. With a market capitalization of $4.73 billion, Credo Technology is a notable player in the connectivity solutions space. Despite a negative P/E ratio of -147.94, reflecting challenges in profitability, the company's gross profit margin stands strong at 62.47% for the last twelve months as of Q1 2025. This high margin is indicative of the company's effective cost management and strong pricing power, aligning with the positive sentiments expressed by TD Cowen's analyst. InvestingPro Tips also reveal that Credo Technology holds more cash than debt on its balance sheet and that analysts anticipate sales growth in the current year, which could underpin the revenue inflection expected in the second half of fiscal year 2025. Additionally, the company's stock price has seen a significant return over the last week, with a 17.52% total return, underscoring the market's recent positive reception to Credo's strategic moves. For investors seeking a deeper dive into Credo Technology's prospects, InvestingPro offers a suite of additional tips, including insights on anticipated net income growth and sales growth, as well as an analysis of the stock's volatility and valuation multiples. With 15 more InvestingPro Tips available, including projections on the company's profitability this year, investors can access a comprehensive analysis to inform their investment decisions. The InvestingPro Fair Value estimate currently stands at $24.17, which suggests a more conservative outlook compared to the analyst targets. As the company approaches its next earnings date on November 28, 2024, stakeholders will be closely monitoring whether the anticipated revenue inflection in the latter part of fiscal year 2025 will materialize and drive the stock towards the $40.00 target set by TD Cowen.

Credo Technology COO sells over $276k in company stock By Investing.com

In a recent transaction, Lam Yat Tung, the Chief Operating Officer of Credo Technology Group Holding Ltd (NASDAQ:CRDO), sold a total of 10,000 ordinary shares of the company. The sales, which took place on September 12, 2024, amounted to over $276,000, with individual share prices ranging between $26.7875 and $27.8408. The transactions were carried out under a Rule 10b5-1 trading plan, which was adopted by Lam on July 13, 2023. Rule 10b5-1 allows company insiders to set up a predetermined plan to sell company stocks, providing them with a defense against claims of insider trading. In the first transaction, Lam sold 1,413 shares at a weighted average price of $26.7875, with the total sale amounting to approximately $37,859. The second sale consisted of 8,587 shares at a weighted average price of $27.8408, totaling approximately $239,060. The combined sales resulted in Lam's direct beneficial ownership of Credo Technology shares decreasing to 2,885,840. The sales were executed in multiple trades, with prices for the first sale ranging from $26.40 to $27.29 and for the second sale from $27.48 to $28.19. The reported prices reflect the weighted average sale price for each transaction. In addition to the sales, a footnote in the SEC filing corrected previously reported numbers of securities beneficially owned by Lam. Due to an administrative error, past reports had misstated the number of shares owned following transactions. The corrected amount of directly beneficially owned securities is now reported as 2,855,840. The SEC filing also noted holdings in indirect ownership by entities associated with Lam. The shares held indirectly include 720,000 by Chung BVI Co Ltd and 1,270,000 by Zhan BVI Co Ltd. However, Lam disclaims beneficial ownership of these shares except to the extent of any pecuniary interest. Investors and followers of Credo Technology Group Holding Ltd can find further details regarding the transactions upon request to the SEC staff, the issuer, or a security holder of the issuer, as Lam has undertaken to provide full information regarding the number of shares sold and the prices at which the transactions were executed. In other recent news, Credo Technology Group Holding Ltd. has been the subject of numerous significant developments. The company reported an impressive start to fiscal 2025, with Q1 revenues reaching $59.7 million and a non-GAAP gross margin of 62.9%. This represents a substantial year-over-year revenue increase of 70%, largely due to expanding AI deployments. Furthermore, Credo Technology plans to enter the 64 gig PAM4 PCIe Gen 6 market later this year, aiming to capitalize on the growing demand for higher bandwidth driven by AI applications. Analysts from TD Cowen, Craig-Hallum, and Needham have reaffirmed their Buy ratings on Credo Technology, with TD Cowen maintaining a price target of $40.00, Craig-Hallum raising their target to $38.00, and Needham increasing theirs to $33.00. These adjustments are based on the company's strong financial performance and promising future guidance. The analysts anticipate a significant revenue increase during the second half of fiscal year 2025, driven by the company's diversified revenue streams from its broadening product offerings. As market participants digest the recent insider transactions at Credo Technology Group Holding Ltd (NASDAQ:CRDO), it's worth considering the company's financial health and stock performance through a lens of data-driven insights. Credo's market capitalization stands at a robust $4.73 billion, reflecting a significant presence in its industry. Despite a negative P/E ratio of -147.94, indicating that the company is currently unprofitable, the gross profit margin over the last twelve months as of Q1 2025 is impressive at 62.47%, suggesting that the company has a strong control over its production costs relative to its revenue. Investors may also take note of Credo's revenue growth, which has been substantial. The company has seen a 25.9% increase in revenue over the last twelve months as of Q1 2025, with an even more striking quarterly revenue growth of 70.15% in Q1 2025. This indicates a strong upward trajectory in terms of sales, which could be a positive sign for future profitability. Additionally, Credo's stock has experienced a significant return over the last year, with a price total return of 90.57%. For those considering an investment in Credo Technology, two InvestingPro Tips highlight key aspects of the company's stock characteristics. First, Credo is noted for holding more cash than debt on its balance sheet, which can offer a degree of financial stability and flexibility. Second, analysts anticipate sales growth in the current year, which may contribute to the company's future success and potentially influence its stock price positively. For investors seeking a deeper analysis and more InvestingPro Tips, there are 15 additional tips available on Credo Technology Group Holding Ltd that can be accessed at InvestingPro. These tips offer further insights into the company's financial performance and stock valuation, which could be invaluable for making informed investment decisions.