Credo Technology Group (NASDAQ:CRDO) Stock Falls 1.3% After Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price traded down 1.3% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $185.20 and last traded at $198.31. 10,812,420 shares changed hands during mid-day trading, an increase of 43% from the average session volume of 7,558,714 shares. The stock had previously closed at $200.84.

Specifically, CFO Daniel Fleming sold 7,580 shares of the stock in a transaction dated 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 owned 492,208 shares in the company, valued at $104,796,005.28. This represents a 1.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $221.48, for a total transaction of $6,090,700.00. Following the completion of the transaction, the chief technology officer directly owned 5,634,897 shares in the company, valued at $1,248,016,987.56. This represents a 0.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analyst Ratings Changes

Several equities analysts have recently commented on CRDO shares. JPMorgan Chase & Co. lowered their target price on Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating for the company in a report on Wednesday, September 2nd. Susquehanna raised their price target on Credo Technology Group from $235.00 to $250.00 and gave the stock a “positive” rating in a report on Tuesday, July 21st. Rosenblatt Securities boosted their price objective on Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a research report on Wednesday, September 2nd. Stifel Nicolaus lowered their price objective 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. Finally, Zacks Research downgraded Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. One equities research 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 company’s stock. According to MarketBeat, Credo Technology Group has an average rating of “Moderate Buy” and an average price target of $262.67.

Credo Technology Group News Roundup

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

• Positive Sentiment: Credo introduced a 1.6T ZeroFlap Active Light Cable, a row-scale, wide-parallel optical interconnect designed for AI data centers. The company says the product can reduce power consumption, improve reliability and extend reach, potentially supporting future revenue growth as AI clusters become larger and more bandwidth-intensive. Credo Unveils 1.6T ZeroFlap Active Light Cable
• Positive Sentiment: The company launched a Short-Reach Micro-Emitter Optics, or SRMO, standardization effort within the Open Compute Project. The workstream is targeting specifications for AI data-center scale-up and scale-out applications, giving Credo an opportunity to influence an emerging industry standard and create longer-term demand for its optical connectivity products. Credo Launches SRMO Standardization
• Positive Sentiment: Credo also described work using AMD programmable-logic-based AI accelerators to address memory-bandwidth constraints, reinforcing its positioning as a supplier of connectivity solutions for increasingly demanding AI infrastructure. Credo Breaks the Memory Wall
• Neutral Sentiment: Investor commentary remains bullish on Credo’s growth opportunity, noting that its expansion has outpaced Marvell and Astera Labs. However, the comparison also underscores that expectations are elevated before the next earnings report. Credo Technology’s Price Targets Reveal the Size of Its Opportunity
• Negative Sentiment: Credo trades at a demanding valuation, with a high earnings multiple and substantial prior gains reflected in the share price. That valuation leaves the stock vulnerable to profit-taking or a pullback when investors do not receive a fresh earnings or guidance catalyst, even as the company’s product announcements remain encouraging.

Credo Technology Group Stock Performance

The stock has a market capitalization of $37.27 billion, a price-to-earnings ratio of 70.57, a price-to-earnings-growth ratio of 0.86 and a beta of 3.25. The business’s 50 day simple moving average is $208.78 and its 200-day simple moving average is $203.24.

Credo Technology Group (NASDAQ:CRDO) last announced its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, beating the consensus estimate of $1.17 by $0.03. The company had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. Credo Technology Group’s revenue was up 114.7% compared to the same quarter last year. During the same quarter last year, the business earned $0.52 earnings per share. As a group, sell-side analysts expect that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Institutional Trading of Credo Technology Group

Several large investors have recently added to or reduced their stakes in CRDO. GAMMA Investing LLC boosted its position in Credo Technology Group by 2.6% during the 3rd quarter. GAMMA Investing LLC now owns 1,986 shares of the company’s stock worth $387,000 after acquiring an additional 51 shares during the period. City Center Advisors LLC increased its holdings in shares of Credo Technology Group by 2.1% during the second quarter. City Center Advisors LLC now owns 2,595 shares of the company’s stock valued at $706,000 after purchasing an additional 53 shares during the period. Versant Capital Management Inc raised its stake in shares of Credo Technology Group by 8.0% during the second quarter. Versant Capital Management Inc now owns 755 shares of the company’s stock valued at $205,000 after purchasing an additional 56 shares in the last quarter. QRG Capital Management Inc. raised its stake in shares of Credo Technology Group by 1.7% during the first quarter. QRG Capital Management Inc. now owns 5,402 shares of the company’s stock valued at $507,000 after purchasing an additional 91 shares in the last quarter. Finally, Bank of Nova Scotia lifted its holdings in Credo Technology Group by 1.6% in the first quarter. Bank of Nova Scotia now owns 6,026 shares of the company’s stock worth $566,000 after purchasing an additional 92 shares during the period. 80.46% of the stock is currently owned by institutional investors and hedge funds.

About Credo Technology Group

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.