Credo Technology Group (NASDAQ:CRDO) Stock Falls 9.6% After Insider Selling

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO) fell 9.6% during trading on Wednesday after an insider sold shares in the company. The stock traded as low as $179.00 and last traded at $179.23. Approximately 12,148,057 shares were traded during trading, an increase of 60% from the average daily volume of 7,583,134 shares. The stock had previously closed at $198.31.

Specifically, CFO Daniel Fleming sold 7,580 shares of the stock in a transaction that occurred on Thursday, October 8th. The shares were sold at an average price of $212.91, for a total transaction of $1,613,857.80. Following the sale, the chief financial officer directly owned 492,208 shares of the company’s stock, valued at $104,796,005.28. This represents a 1.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Rosenblatt Securities raised their price target on shares of Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a report on Wednesday, September 2nd. Barclays upped their price objective on Credo Technology Group from $260.00 to $300.00 and gave the stock an “overweight” rating in a report on Monday, July 20th. JPMorgan Chase & Co. decreased their price objective on Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating on the stock in a research report on Wednesday, September 2nd. TD Cowen increased their price objective on Credo Technology Group from $260.00 to $300.00 and gave the company a “buy” rating in a research report on Tuesday, August 18th. Finally, Mizuho lowered their target price on Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating for the company in a research note on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $262.67.

More Credo Technology Group News

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

• Positive Sentiment: Credo’s AI connectivity demand remains robust. Recent quarterly revenue increased 114.7% year over year to $479 million, while EPS exceeded analyst expectations. Analysts cited in recent coverage expect fiscal 2027 revenue to rise more than 85%, supported by record sales and expansion of the optical business. Does Credo’s Revenue Outlook Signal Further Upside?
• Positive Sentiment: The company unveiled its 1.6T ZeroFlap Active Light Cable, designed for AI data centers with lower power consumption, longer reach and improved reliability. Commercial shipments are expected around 2027, creating a potential new growth driver as data-center bandwidth requirements increase. Credo Expands AI Connectivity Portfolio
• Positive Sentiment: Credo is leading an Open Compute Project workstream to standardize Short-Reach Micro-Emitter Optics, potentially positioning its technology for broader hyperscaler adoption. Its collaboration with AMD on memory connectivity also expands the company’s opportunity beyond active electrical cables. Credo Launches SRMO Standardization
• Neutral Sentiment: Some analysts view CRDO as undervalued relative to its growth and peers, with a consensus “Moderate Buy” rating. However, the company still trades at a high earnings multiple and relies heavily on two customers. Investors must also wait for newer optical products to ship at scale before they can materially affect results.
• Negative Sentiment: The recent decline appears largely linked to sector-wide weakness and profit-taking in AI infrastructure stocks rather than a newly reported operational problem. High volatility and valuation sensitivity remain risks if customer capital spending slows. Does the Drop in Credo Stock Change Anything?
• Negative Sentiment: CFO Daniel Fleming sold 7,580 shares under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only 1.52% and left him with a substantial stake, limiting its significance, but it may add modest pressure to sentiment.

Credo Technology Group Stock Down 9.6%

The company’s fifty day moving average is $207.99 and its two-hundred day moving average is $203.90. The firm has a market capitalization of $33.69 billion, a price-to-earnings ratio of 63.78, a price-to-earnings-growth ratio of 0.80 and a beta of 3.25.

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

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in CRDO. Corient Private Wealth LLC raised its position in shares of Credo Technology Group by 239,024.5% during the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company’s stock worth $517,835,000 after purchasing an additional 3,597,318 shares during the period. Atreides Management LP acquired a new position in shares of Credo Technology Group in the 1st quarter valued at approximately $102,434,000. The Manufacturers Life Insurance Company grew its position in shares of Credo Technology Group by 192.1% in the 1st quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company’s stock valued at $98,290,000 after purchasing an additional 688,596 shares during the period. H&H International Investment LLC increased its stake in Credo Technology Group by 431.6% during the 1st quarter. H&H International Investment LLC now owns 751,200 shares of the company’s stock worth $70,515,000 after purchasing an additional 609,900 shares in the last quarter. Finally, Oaktree Capital Management LP bought a new stake in Credo Technology Group during the 1st quarter worth approximately $50,596,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

Credo Technology Group Company Profile

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.