Key Points
- CEO William Brennan sold 16,672 shares of Credo Technology Group for approximately $2.5 million under a pre-arranged Rule 10b5-1 trading plan, reducing his direct holdings by 1.03% to 1.6 million shares.
- Credo reported strong quarterly results, with revenue rising 114.7% year over year to $479 million and EPS of $1.20, exceeding analyst estimates.
- Analysts remain broadly bullish, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $267.39, although cash flow has lagged adjusted earnings and valuation risks remain.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) CEO William Brennan sold 16,672 shares of Credo Technology Group stock in a transaction on Monday, September 14th. The stock was sold at an average price of $151.88, for a total value of $2,532,143.36. Following the completion of the sale, the chief executive officer directly owned 1,600,830 shares of the company's stock, valued at $243,134,060.40. The trade was a 1.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Credo Technology Group Stock Performance
Credo Technology Group stock opened at $161.49 on Thursday. Credo Technology Group Holding Ltd. has a one year low of $86.49 and a one year high of $308.67. The stock has a fifty day moving average of $215.50 and a 200 day moving average of $191.60. The stock has a market cap of $30.35 billion, a PE ratio of 57.47, a price-to-earnings-growth ratio of 0.60 and a beta of 3.22.
Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.03. The business had revenue of $479.00 million for the quarter, compared to analysts' expectations of $473.30 million. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%.The business's revenue for the quarter was up 114.7% on a year-over-year basis. During the same period last year, the firm posted $0.52 earnings per share. As a group, sell-side analysts predict that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.
Credo Technology Group News Roundup
Here are the key news stories impacting Credo Technology Group this week:
- Positive Sentiment: New 1.6T optical products strengthen the AI infrastructure story. Credo expanded its ZeroFlap portfolio with 224G-based 1.6T optical transceivers designed for faster, denser AI networks. The launch gives the company additional products aimed at data-center bandwidth bottlenecks and supports expectations for continued demand from AI infrastructure customers. Credo Expands ZeroFlap Portfolio with 224G-Based 1.6T Optical Transceivers
- Positive Sentiment: Management sees a large opportunity in AI inference. Credo’s OmniConnect platform is being positioned as a potential multibillion-dollar growth opportunity, with management projecting meaningful fiscal 2028 revenue and substantial connectivity content per GPU. The company’s earnings call also highlighted optical products, silicon photonics and optical DSPs as key growth engines. Can Credo's OmniConnect Unlock a New AI Inference Growth Engine?
- Positive Sentiment: Recent operating momentum remains strong. Credo’s latest reported quarter showed revenue of $479 million, up 114.7% year over year, with earnings modestly exceeding analyst expectations. Management has also indicated expectations for more than 85% fiscal 2027 revenue growth and roughly 50% non-GAAP net margins, supporting the bullish AI-connectivity thesis. Credo Technology’s Earnings Call Signals Optical-Fueled Surge
- Neutral Sentiment: Analysts continue comparing CRDO with larger AI-chip and connectivity companies. Articles contrasting Credo with Marvell, Broadcom and NVIDIA reinforce investor interest but do not represent new company-specific financial guidance. Credo’s high-growth profile is attractive, though valuation, customer concentration and the sustainability of AI spending remain important risks. Credo vs. Broadcom
- Negative Sentiment: Cash flow is trailing adjusted earnings. One analysis noted that Credo generated approximately $236 million of adjusted profit but only $83 million of free cash flow, raising questions about earnings quality and working-capital needs ahead of the next report. Credo's $236 Million Adjusted Profit Came With Just $83 Million in Free Cash Flow
- Negative Sentiment: The CEO sold shares. CEO William Brennan sold 16,672 shares worth about $2.5 million. The transaction occurred under a pre-arranged Rule 10b5-1 plan and reduced his ownership by only 1.03%, making it a limited signal, but insider selling can still weigh on sentiment. SEC Form 4 Insider Sale
Analysts Set New Price Targets
CRDO has been the subject of several recent research reports. The Goldman Sachs Group restated a "buy" rating and set a $250.00 target price on shares of Credo Technology Group in a research report on Tuesday, June 2nd. JPMorgan Chase & Co. cut their price objective on shares of Credo Technology Group from $335.00 to $310.00 and set an "overweight" rating for the company in a research report on Wednesday, September 2nd. Rosenblatt Securities upped their price objective on Credo Technology Group from $215.00 to $235.00 and gave the stock a "neutral" rating in a research note on Wednesday, September 2nd. Barclays lifted their target price on Credo Technology Group from $260.00 to $300.00 and gave the company an "overweight" rating in a research report on Monday, July 20th. Finally, Needham & Company LLC boosted their price target on Credo Technology Group from $220.00 to $275.00 and gave the company a "buy" rating in a report on Monday, June 1st. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $267.39.
Check Out Our Latest Analysis on Credo Technology Group
Hedge Funds Weigh In On Credo Technology Group
Large investors have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC increased its stake in shares of Credo Technology Group by 19.0% in the second quarter. Sequoia Financial Advisors LLC now owns 6,659 shares of the company's stock worth $1,811,000 after purchasing an additional 1,063 shares in the last quarter. IPG Investment Advisors LLC bought a new position in Credo Technology Group in the 2nd quarter worth $3,078,000. Integrated Wealth Concepts LLC boosted its holdings in Credo Technology Group by 68.5% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 15,962 shares of the company's stock worth $4,341,000 after buying an additional 6,489 shares during the period. NewEdge Advisors LLC increased its stake in Credo Technology Group by 56.0% in the 2nd quarter. NewEdge Advisors LLC now owns 9,176 shares of the company's stock worth $2,495,000 after buying an additional 3,293 shares in the last quarter. Finally, GFG Capital LLC purchased a new stake in Credo Technology Group in the 2nd quarter worth $214,000. Hedge funds and other institutional investors own 80.46% of the company's stock.
Credo Technology Group Company Profile
(
Get Free Report)
Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for the data infrastructure market. Its products are designed to help move data efficiently within and between networking, storage and computing systems, with applications in artificial intelligence, cloud computing, telecommunications and enterprise data centers.
The company's portfolio includes serializer/deserializer (SerDes) integrated circuits, retimers, optical digital signal processors and active electrical cables.
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