Key Points
- Credo CTO Chi Fung Cheng sold 27,500 shares for approximately $4.58 million under a pre-arranged Rule 10b5-1 plan, reducing his holdings by just 0.48% to 5.72 million shares.
- Credo reported strong quarterly results, with revenue up 114.7% year over year to $479 million and EPS of $1.20, exceeding analyst expectations.
- Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $264.89, although concerns include the stock’s premium valuation, customer concentration and recent price decline.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) CTO Chi Cheng sold 27,500 shares of the company's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $166.38, for a total transaction of $4,575,450.00. Following the completion of the transaction, the chief technology officer owned 5,717,397 shares of the company's stock, valued at $951,260,512.86. This trade represents a 0.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Chi Fung Cheng also recently made the following trade(s):
- On Friday, September 4th, Chi Cheng sold 3,790 shares of Credo Technology Group stock. The stock was sold at an average price of $170.00, for a total transaction of $644,300.00.
- On Friday, July 31st, Chi Cheng sold 27,473 shares of Credo Technology Group stock. The stock was sold at an average price of $209.53, for a total transaction of $5,756,417.69.
- On Monday, July 27th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $205.54, for a total value of $5,652,350.00.
- On Tuesday, July 21st, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $222.34, for a total transaction of $6,114,350.00.
- On Wednesday, July 8th, Chi Cheng sold 3,790 shares of Credo Technology Group stock. The shares were sold at an average price of $258.71, for a total transaction of $980,510.90.
- On Tuesday, July 7th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $243.06, for a total value of $6,684,150.00.
- On Tuesday, June 30th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $269.84, for a total transaction of $7,420,600.00.
- On Tuesday, June 23rd, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $270.94, for a total transaction of $7,450,850.00.
Credo Technology Group Trading Up 6.5%
CRDO stock opened at $187.27 on Tuesday. Credo Technology Group Holding Ltd. has a 52 week low of $86.49 and a 52 week high of $308.67. The company has a market capitalization of $35.20 billion, a price-to-earnings ratio of 66.64, a price-to-earnings-growth ratio of 0.70 and a beta of 3.22. The firm's 50-day moving average is $210.92 and its two-hundred day moving average is $193.06.
Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. The company had revenue of $479.00 million during 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%. The business's revenue for the quarter was up 114.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.52 EPS. On average, equities research analysts predict that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.
Analysts Set New Price Targets
A number of brokerages have issued reports on CRDO. TD Cowen increased their price target on Credo Technology Group from $260.00 to $300.00 and gave the company a "buy" rating in a research note on Tuesday, August 18th. Needham & Company LLC boosted their price objective on Credo Technology Group from $220.00 to $275.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Weiss Ratings upgraded Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday. Bank of America decreased their target price 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. Finally, Zacks Research lowered Credo Technology Group from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $264.89.
Read Our Latest Analysis on Credo Technology Group
Institutional Trading of Credo Technology Group
A number of large investors have recently added to or reduced their stakes in the business. Reflection Asset Management acquired a new stake in shares of Credo Technology Group during the 4th quarter valued at $25,000. Orion Capital Management LLC acquired a new stake in shares of Credo Technology Group during the second quarter worth $27,000. AlphaCentric Advisors LLC purchased a new stake in shares of Credo Technology Group during the first quarter valued at $33,000. Western Wealth Management LLC acquired a new position in shares of Credo Technology Group in the 1st quarter valued at $38,000. Finally, MCF Advisors LLC increased its stake in Credo Technology Group by 309.9% in the 4th quarter. MCF Advisors LLC now owns 373 shares of the company's stock worth $54,000 after purchasing an additional 282 shares in the last quarter. 80.46% of the stock is currently owned by institutional investors.
Credo Technology Group News Summary
Here are the key news stories impacting Credo Technology Group this week:
- Positive Sentiment: Credo was added to the FTSE All-World Index, which could increase visibility and generate incremental demand from index-tracking funds. Credo added to FTSE All-World Index
- Positive Sentiment: Credo’s new 1.6T ZeroFlap optics expand its addressable market as management targets more than $600 million in fiscal 2027 optical revenue, reinforcing the company’s data-center and AI infrastructure growth story. Credo’s 1.6T optics
- Positive Sentiment: Recent commentary highlights Credo’s AI-driven expansion, including triple-digit revenue growth, an earnings beat, and raised guidance. Some analysts and investors view the stock’s decline from its highs as a potential buying opportunity. Credo growth outlook
- Positive Sentiment: Jim Cramer said investors with a 12-month horizon could buy CRDO, offering a supportive but non-fundamental sentiment boost. Jim Cramer on Credo
- Neutral Sentiment: Mizuho reduced its price target from $290 to $245 but retained an Outperform rating, implying substantial upside from the referenced share price while acknowledging a more cautious valuation view. Mizuho cuts Credo price target
- Negative Sentiment: Bearish analysis argues that further pain may be ahead for shareholders, with risks tied to Credo’s premium valuation, customer concentration, and the difficulty of sustaining rapid growth. The stock has also fallen sharply over the past several months despite strong operating results. Bearish Credo shareholder analysis
- Negative Sentiment: Chief Technology Officer Chi Fung Cheng sold 27,500 shares under a pre-arranged Rule 10b5-1 plan. The sale represented only 0.48% of his holdings, limiting its significance, but insider selling can still weigh on sentiment. Credo CTO insider sale
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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