The stock of Credo Technology Group Holding Ltd (NASDAQ:CRDO) increased by $0.03 on Tuesday to finish at $14.88, up 0.20 percent. The last five days have seen an average of 3,376,200 shares of common stock traded. 14 times new highs were reached in the current year, with a gain of $1.57. The average number of shares traded over the last 20 days was 2,114,950, while the average volume over the last 50 days totaled 2,270,022.
CRDO stock dropped -11.38% since last month. On 08/11/23, the company’s shares reached a one-month low of $14.00. The stock touched a high of $19.46 on 02/14/23, after rallying from a low of $7.20 in 52 weeks. The price of CRDO stock has risen by 11.80% or $1.57 this year, reaching a new high 14 times. Still, the stock price is down -23.54% from the 52-week high.
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Insider Transactions
CRDO stock investors should be aware that Credo Technology Group Holding Ltd (CRDO) stock had its last reported insider trading activity 6 days ago on Aug 10. On Aug 10, Chief Technology Officer Cheng Chi Fung sold 40,000 shares at $14.65 each. This transaction resulted in the insider making $586,052. On Aug 10, Cheng Chi Fung sold 1,600 shares at a price of US$15.02. After the transaction, the insider now owns 359,350 shares. Chief Operating Officer Lam Yat Tung had earlier sold 150,000 shares on Aug 08 for $15.28 a share. The transaction was completed for $2,292,110.
Valuation Metrics
Beta for the stock is 2.04. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 12.22, the price-to-book (PB) ratio of 6.33.
Financial Health
For the three months ended April 29, Credo Technology Group Holding Ltd’s quick ratio was 9.10, while its current ratio was 10.60, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 57.70% percent. Credo Technology Group Holding Ltd’s EBITDA margin for the year ended April 29 was -5.06%, whereas its operating margin stood at -11.50% for the same period. Based on annual data, it had gross profit of $106.19 million and revenue of $184.19 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. CRDO’s return on assets (ROA) during the last 12 months has been -4.10%. There was a -5.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -4.80%.
Earnings Surprise
According to Credo Technology Group Holding Ltd’s quarterly financial report for the quarter that ended April 29, it had $109.23 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $32.09 million, while revenues fell by -132.72% to $54.27 million. It was predicted that Credo Technology Group Holding Ltd’s quarterly earnings would be -$0.04, but it ended up being -$0.04. EBITDA was -$13.41 million for the quarter. At the end of Credo Technology Group Holding Ltd’s most recent quarter ended April 29, its liabilities totaled 49.65 million, while its total debt was $15.5 million. Equity owned by shareholders amounts to $149.08 million.
Technical Picture
Here’s a quick look at Credo Technology Group Holding Ltd’s (CRDO) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 35.89%, suggesting the stock is Neutral, with a 46.47% historical volatility rate.
The stochastic %K and %D were 18.81% and 11.75% respectively, while the average true range (ATR) was 0.71. Based on the 14-day stochastic reading of 24.11%, the RSI (14) reading is 39.07%. On the 9-day MACD Oscillator, the stock is at -0.61, and the 14-day reading is at -1.11.
Analyst Ratings
In its analyst report released on February 28, 2023, Exane BNP Paribas began covering Credo Technology Group Holding Ltd (NASDAQ: CRDO). The stock was rated as an Outperform by the brokerage firm. Analysts have assigned Credo Technology Group Holding Ltd (CRDO) an Buy rating. CRDO is a stock that is recommended for selling by 0 brokerage firms, while 1 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 0 rates it overweight and 9 others recommend it as a buy.
What is CRDO’s price target for the next 12 months?
The current consensus forecast for the stock is between $14.00 and $25.19, with a median target price of $17.50. In analyzing these forecasts, the average price target given by analysts for Credo Technology Group Holding Ltd (CRDO) is $18.22.
