Credo Technology Group (NASDAQ:CRDO) Stock Price Down 10.7% on Insider Selling

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO) fell 10.7% on Thursday after an insider sold shares in the company. The stock traded as low as $161.26 and last traded at $162.77. 8,765,673 shares changed hands during mid-day trading, an increase of 15% from the average daily volume of 7,591,728 shares. The stock had previously closed at $182.28.

Specifically, CEO William Brennan sold 16,666 shares of the company’s stock in a transaction on Monday, October 19th. The stock was sold at an average price of $174.87, for a total transaction of $2,914,383.42. Following the transaction, the chief executive officer directly owned 1,584,164 shares of the company’s stock, valued at approximately $277,022,758.68. The trade was a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on CRDO. Weiss Ratings lowered shares of Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, October 6th. Susquehanna boosted their target price on Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Bank of America cut their price target on Credo Technology Group from $340.00 to $275.00 and set a “buy” rating for the company in a research note on Wednesday, September 2nd. Evercore set a $292.00 price target on shares of Credo Technology Group in a research note on Wednesday, September 2nd. Finally, Mizuho reduced their price objective on shares of 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 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 stock. According to MarketBeat, Credo Technology Group has an average rating of “Moderate Buy” and a consensus target price of $262.67.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Credo’s triple-digit revenue growth, recent earnings beat and raised outlook continue to support the bullish case. Analysts cited in recent coverage believe the pullback has created significant upside, with the company benefiting from demand for high-speed connectivity products used in AI data centers. Credo Growth and Analyst Upside Article
• Positive Sentiment: Investor sentiment toward AI infrastructure has shown signs of recovery, helping drive a recent rebound in CRDO and other related technology stocks. Brown Advisory also highlighted Credo as a growth company benefiting from active stock selection opportunities amid market volatility. Credo AI Rebound Article
• Positive Sentiment: Credo’s planned optical cable, expected to ship in 2027, could provide a second growth engine. The product is designed to use about 30% less power than comparable copper cables, although the opportunity is not yet contributing revenue. Credo Optical Cable Article
• Neutral Sentiment: Valuation remains the key debate. With a high earnings multiple following a major multiyear rally, one analysis concluded the shares appear fairly priced based on currently achievable cash flows, while the consensus analyst target remains materially above recent levels. Credo Valuation Analysis
• Negative Sentiment: CEO William Brennan sold 16,666 shares worth approximately $2.9 million, reducing his direct stake by about 1.04%. The sale was made under a pre-arranged Rule 10b5-1 plan, limiting its bearish significance, but it may still weigh modestly on investor sentiment. Credo CEO SEC Filing

Credo Technology Group Trading Down 10.7%

The firm has a 50-day moving average of $199.85 and a two-hundred day moving average of $207.31. The firm has a market cap of $30.59 billion, a price-to-earnings ratio of 57.93, a PEG ratio of 0.68 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO) last issued its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, topping the consensus estimate 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 company had revenue of $479.00 million for the quarter, compared to the consensus estimate of $473.30 million. During the same period in the previous year, the business posted $0.52 EPS. The company’s revenue for the quarter was up 114.7% on a year-over-year basis. As a group, equities analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Institutional Trading of Credo Technology Group

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Atreides Management LP acquired a new position in shares of Credo Technology Group during the first quarter valued at about $102,434,000. The Manufacturers Life Insurance Company grew its position in Credo Technology Group by 192.1% during the first quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company’s stock worth $98,290,000 after buying an additional 688,596 shares in the last quarter. H&H International Investment LLC grew its position in Credo Technology Group by 431.6% during the first quarter. H&H International Investment LLC now owns 751,200 shares of the company’s stock worth $70,515,000 after buying an additional 609,900 shares in the last quarter. Oaktree Capital Management LP acquired a new stake in Credo Technology Group during the first quarter worth about $50,596,000. Finally, Danica Pension Livsforsikringsaktieselskab bought a new position in Credo Technology Group during the first quarter valued at about $44,302,000. 80.46% of the stock is currently owned by institutional investors and hedge funds.

About Credo Technology Group

Credo Technology Group Holding Ltd. is a fabless semiconductor and connectivity solutions company that develops high-speed data-infrastructure technologies. Its products are designed to help data centers and communications networks move large volumes of information with lower power consumption and improved signal integrity.

The company’s portfolio includes serializer/deserializer (SerDes) intellectual property, application-specific integrated circuits, active electrical cables, optical digital signal processors and related connectivity platforms.