Key Points
- CTO Chi Fung Cheng sold 27,500 Credo shares at an average price of $172.62, generating approximately $4.75 million. The sale occurred under a pre-arranged Rule 10b5-1 plan, and he retained nearly 5.58 million shares.
- The transaction is part of a series of insider sales by Cheng in recent months, while Credo’s CEO also reportedly sold shares. Because the sales were scheduled in advance, they may be less indicative of discretionary bearish views.
- Credo reported strong operating momentum, with quarterly revenue up 114.7% year over year and EPS and revenue exceeding estimates. However, the stock’s elevated valuation and recent price decline leave it sensitive to AI-demand expectations and growth concerns.
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 Tuesday, October 20th. The shares were sold at an average price of $172.62, for a total value of $4,747,050.00. Following the completion of the sale, the chief technology officer owned 5,579,897 shares in the company, valued at $963,201,820.14. This trade represents a 0.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Chi Fung Cheng also recently made the following trade(s):
- On Tuesday, October 13th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $192.99, for a total transaction of $5,307,225.00.
- On Monday, October 12th, Chi Cheng sold 3,790 shares of Credo Technology Group stock. The stock was sold at an average price of $201.84, for a total transaction of $764,973.60.
- On Tuesday, October 6th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $221.48, for a total value of $6,090,700.00.
- On Tuesday, September 29th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $193.93, for a total transaction of $5,333,075.00.
- On Wednesday, September 23rd, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $193.12, for a total transaction of $5,310,800.00.
- On Thursday, September 17th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $166.38, for a total value of $4,575,450.00.
- On Friday, September 4th, Chi Cheng sold 3,790 shares of Credo Technology Group stock. The shares were sold at an average price of $170.00, for a total value of $644,300.00.
- On Friday, July 31st, Chi Cheng sold 27,473 shares of Credo Technology Group stock. The shares were 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 shares were sold at an average price of $205.54, for a total transaction of $5,652,350.00.
Credo Technology Group Stock Performance
CRDO opened at $162.77 on Friday. The firm's fifty day moving average is $197.79 and its two-hundred day moving average is $207.74. The firm has a market cap of $30.59 billion, a PE ratio of 61.58, a price-to-earnings-growth ratio of 0.73 and a beta of 3.25. Credo Technology Group Holding Ltd. has a twelve month low of $86.49 and a twelve month high of $308.67.
Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.03. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The company had revenue of $479.00 million during the quarter, compared to analyst estimates of $473.30 million. During the same quarter in the previous year, the business earned $0.52 EPS. The firm's revenue was up 114.7% on a year-over-year basis. Equities analysts forecast 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: Credo’s latest quarter delivered revenue growth of 114.7% year over year, with earnings and revenue exceeding analyst expectations. The company also raised its outlook, reinforcing expectations for continued demand for high-speed connectivity products used in AI data centers. Two Wall Street firms reportedly see significant upside following the recent selloff. Credo upside analysis
- Positive Sentiment: Credo is developing optical cables expected to use approximately 30% less power than comparable copper products. Although shipments are not expected until 2027, the technology could provide a second growth engine as data-center operators seek more power-efficient connectivity solutions. Credo optical cable opportunity
- Neutral Sentiment: Analysts remain broadly constructive, with a reported average price target of $262.67 and a “Moderate Buy” consensus. However, another valuation analysis suggested the stock may already be fairly priced after its multiyear rally, highlighting the risk that strong growth expectations are reflected in the shares. Credo valuation analysis
- Negative Sentiment: CEO William Brennan sold 16,666 shares for approximately $2.9 million, while CTO Chi Cheng sold 27,500 shares for approximately $4.7 million. Both transactions were executed under pre-arranged Rule 10b5-1 plans, reducing their value as discretionary bearish signals, but the insider selling may still pressure investor sentiment. Credo insider sale filing
- Negative Sentiment: CRDO trades at an elevated valuation, with a reported P/E ratio above 57, making the stock especially sensitive to changes in AI enthusiasm, interest rates and concerns about whether future growth can justify its premium price. Recent commentary also cautioned that it may be too early to buy the channel bottom or the dip. Credo channel and valuation analysis
Analyst Ratings Changes
CRDO has been the topic of a number of research analyst reports. Evercore set a $292.00 price target on Credo Technology Group in a research report on Wednesday, September 2nd. JPMorgan Chase & Co. decreased their price objective 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. TD Cowen increased their target price on Credo Technology Group from $260.00 to $300.00 and gave the stock a "buy" rating in a research note on Tuesday, August 18th. Weiss Ratings downgraded shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, October 6th. Finally, Stifel Nicolaus cut their price target 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. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $262.67.
Check Out Our Latest Report on Credo Technology Group
Hedge Funds Weigh In On Credo Technology Group
A number of large investors have recently added to or reduced their stakes in CRDO. GAMMA Investing LLC raised its stake in shares of Credo Technology Group by 2.6% in the 3rd quarter. GAMMA Investing LLC now owns 1,986 shares of the company's stock valued at $387,000 after purchasing an additional 51 shares during the period. City Center Advisors LLC lifted its holdings in shares of Credo Technology Group by 2.1% in the second quarter. City Center Advisors LLC now owns 2,595 shares of the company's stock valued at $706,000 after purchasing an additional 53 shares in the last quarter. Versant Capital Management Inc lifted its holdings in shares of Credo Technology Group by 8.0% in the second quarter. Versant Capital Management Inc now owns 755 shares of the company's stock valued at $205,000 after purchasing an additional 56 shares in the last quarter. Prentice Wealth Management LLC lifted its holdings in shares of Credo Technology Group by 7.5% in the third quarter. Prentice Wealth Management LLC now owns 1,038 shares of the company's stock valued at $202,000 after purchasing an additional 72 shares in the last quarter. Finally, TD Waterhouse Canada Inc. boosted its position in shares of Credo Technology Group by 28.1% during the third quarter. TD Waterhouse Canada Inc. now owns 337 shares of the company's stock worth $71,000 after buying an additional 74 shares during the period. Institutional investors own 80.46% of the company's stock.
About Credo Technology Group
(
Get Free Report)
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.
Featured Articles
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
