Key Points
- Credo Technology Group CTO Chi Cheng sold 3,790 shares for approximately $764,974 under a pre-arranged Rule 10b5-1 plan, reducing his position by 2.83% to 130,318 shares. The sale adds to a series of substantial insider sales in recent months.
- CRDO shares opened at $179.23 after declining 9.6%, well below their 50-day and 200-day moving averages. Despite the volatility and premium valuation, the stock retains a consensus “Moderate Buy” rating with a $262.67 price target.
- Credo’s latest quarter showed strong fundamentals: revenue rose 114.7% year over year to $479 million and earnings surpassed analyst estimates. The company also expects revenue of approximately $525 million to $535 million in its current outlook.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) Director Pantas Sutardja sold 1,540 shares of the business's stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $212.22, for a total transaction of $326,818.80. Following the sale, the director owned 5,890,494 shares of the company's stock, valued at approximately $1,250,080,636.68. This represents a 0.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Credo Technology Group Stock Down 9.6%
Credo Technology Group stock opened at $179.23 on Thursday. The firm has a fifty day moving average of $207.08 and a 200-day moving average of $204.49. Credo Technology Group Holding Ltd. has a 52-week low of $86.49 and a 52-week high of $308.67. The firm has a market capitalization of $33.69 billion, a P/E ratio of 63.78, a PEG ratio of 0.79 and a beta of 3.25.
Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, beating analysts' consensus estimates of $1.17 by $0.03. The business had revenue of $479.00 million for the quarter, compared to the consensus estimate 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 quarter last year, the firm posted $0.52 EPS. On average, research analysts expect that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.
More Credo Technology Group News
Here are the key news stories impacting Credo Technology Group this week:
- Positive Sentiment: Credo’s latest outlook remains robust, with revenue expected at approximately $525 million to $535 million and fiscal 2027 revenue projected to increase by more than 85%. The company’s most recent quarter delivered 114.7% year-over-year revenue growth to $479 million, exceeding analyst expectations. Credo revenue outlook article
- Positive Sentiment: The company introduced its 1.6T ZeroFlap Active Light Cable for AI data centers. The product is designed to provide longer reach, lower power consumption and improved reliability, potentially expanding Credo’s addressable market as hyperscalers increase networking capacity. Credo ZeroFlap cable article
- Positive Sentiment: Credo is helping lead an Open Compute Project workstream to standardize short-reach micro-emitter optics. If approved and adopted, the effort could support future optical connectivity sales and help reduce the company’s reliance on a small number of major customers. Credo SRMO workstream article
- Neutral Sentiment: Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating, but several firms have recently reduced price targets. The stock’s premium valuation and dependence on two large customers leave limited room for execution setbacks. Credo valuation and customer concentration article
- Negative Sentiment: CRDO declined alongside AI infrastructure peers, including Astera Labs, in what appears to be sector-wide profit-taking rather than a newly reported deterioration in Credo’s operations. The decline highlights the stock’s elevated volatility and sensitivity to AI spending sentiment. Credo stock decline analysis
- Negative Sentiment: CTO Chi Cheng sold 31,290 shares, while CFO Daniel Fleming previously sold 7,580 shares; both transactions were conducted under pre-arranged Rule 10b5-1 plans. The sales were modest relative to their remaining holdings but may still weigh on sentiment.
Hedge Funds Weigh In On Credo Technology Group
A number of hedge funds 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 fourth quarter worth $25,000. Orion Capital Management LLC bought a new position in shares of Credo Technology Group in the 2nd quarter worth about $27,000. AlphaCentric Advisors LLC acquired a new position in shares of Credo Technology Group in the 1st quarter valued at about $33,000. Burkett Financial Services LLC acquired a new position in shares of Credo Technology Group in the 3rd quarter valued at about $33,000. Finally, Western Wealth Management LLC acquired a new position in shares of Credo Technology Group in the 1st quarter valued at about $38,000. Institutional investors and hedge funds own 80.46% of the company's stock.
Analysts Set New Price Targets
Several research analysts have commented on the company. Rosenblatt Securities raised 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. Wall Street Zen cut Credo Technology Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. JPMorgan Chase & Co. decreased their target price on 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. Evercore set a $292.00 target price on Credo Technology Group in a research note on Wednesday, September 2nd. Finally, Weiss Ratings lowered Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, October 6th. One research 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. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $262.67.
Check Out Our Latest Analysis on Credo Technology Group
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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