Key Points
- CFO Daniel Fleming sold 7,580 Credo shares for approximately $1.61 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by 1.52%, leaving him with 492,208 shares valued at about $104.8 million.
- Credo reported strong quarterly results, with revenue rising 114.7% year over year to $479 million and EPS of $1.20, exceeding analyst expectations. Shares opened at $198.31, down 1.3%, with a market capitalization of roughly $37.3 billion.
- Analysts maintain a “Moderate Buy” consensus and an average price target of $262.67, although several firms recently lowered their targets. Institutional investors own 80.46% of the stock, while its premium valuation and customer concentration remain key risks.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) CFO Daniel Fleming sold 7,580 shares of the company's stock in a transaction on Thursday, October 8th. The shares were sold at an average price of $212.91, for a total value of $1,613,857.80. Following the transaction, the chief financial officer directly owned 492,208 shares in the company, valued at $104,796,005.28. The trade was a 1.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Credo Technology Group Trading Down 1.3%
Shares of Credo Technology Group stock opened at $198.31 on Wednesday. Credo Technology Group Holding Ltd. has a 1 year low of $86.49 and a 1 year high of $308.67. The company has a market cap of $37.27 billion, a P/E ratio of 67.85, a P/E/G ratio of 0.80 and a beta of 3.25. The stock has a 50-day moving average price of $207.99 and a 200 day moving average price of $203.90.
Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data 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 return on equity of 28.77% and a net margin of 33.83%. The firm had revenue of $479.00 million during the quarter, compared to analyst estimates of $473.30 million. During the same period last year, the company posted $0.52 EPS. The business's quarterly revenue was up 114.7% compared to the same quarter last year. On average, equities analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades
Several analysts recently commented on CRDO shares. Barclays raised their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a report on Monday, July 20th. Stifel Nicolaus dropped their price objective on shares of Credo Technology Group from $350.00 to $310.00 and set a "buy" rating on the stock in a research note on Monday, October 5th. Bank of America cut their target price on shares of Credo Technology Group from $340.00 to $275.00 and set a "buy" rating for the company in a research report on Wednesday, September 2nd. Weiss Ratings lowered shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, October 6th. Finally, Mizuho decreased their target price 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 investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $262.67.
View Our Latest Research Report on CRDO
Credo Technology Group News Summary
Here are the key news stories impacting Credo Technology Group this week:
- Positive Sentiment: Credo launched its 1.6T ZeroFlap Active Light Cable, a row-scale, wide-parallel optical interconnect designed for AI data centers. The product targets lower power consumption, greater reliability and longer reach, potentially expanding Credo’s opportunity as data-center bandwidth requirements increase. Credo Unveils 1.6T ZeroFlap Active Light Cable
- Positive Sentiment: The company is leading an OCP Community workstream to standardize Short-Reach Micro-Emitter Optics, with specifications potentially approved in 2027. Industry adoption could create a longer-term growth avenue for Credo’s AI connectivity technologies. Credo Launches SRMO Standardization
- Positive Sentiment: Credo’s fundamentals remain strong: its latest reported revenue rose 114.7% year over year to $479 million, while adjusted earnings exceeded analyst expectations. Commentary also highlights growth that has outpaced larger connectivity peers, supporting the argument that earnings have begun to justify the stock’s historically high valuation.
- Neutral Sentiment: Analysts and investors are reassessing whether Credo can sustain its growth rate. Although its forward price-to-earnings ratio has fallen substantially from its five-year average, the stock still carries a premium valuation and depends heavily on two major customers, creating execution and concentration risks. Credo Grew Into Its Valuation
- Negative Sentiment: Credo declined alongside peer Astera Labs in a broader pullback in AI infrastructure shares. No company-specific operational deterioration or announcement was identified as the direct cause, suggesting that profit-taking and high-growth stock volatility may be weighing on sentiment. 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 represented only 1.52% of his holdings and leaves him with a substantial stake, limiting its significance, but insider selling can still add modest pressure to investor sentiment.
Institutional Investors Weigh In On Credo Technology Group
A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Bank of America Corp DE raised its position in Credo Technology Group by 13.7% during the second quarter. Bank of America Corp DE now owns 2,182,764 shares of the company's stock valued at $593,603,000 after acquiring an additional 262,479 shares in the last quarter. Corient Private Wealth LLC increased its stake in shares of Credo Technology Group by 239,024.5% during the 4th 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 last quarter. Atreides Management LP increased its stake in shares of Credo Technology Group by 3.5% during the 2nd quarter. Atreides Management LP now owns 1,129,285 shares of the company's stock worth $307,109,000 after purchasing an additional 38,052 shares during the last quarter. Barclays PLC raised its holdings in shares of Credo Technology Group by 33.8% during the 4th quarter. Barclays PLC now owns 1,448,004 shares of the company's stock valued at $208,353,000 after purchasing an additional 365,923 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in shares of Credo Technology Group by 192.1% during 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 in the last quarter. 80.46% of the stock is owned by hedge funds and other institutional investors.
About Credo Technology Group
(
Get Free Report)
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.
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