Credo Technology Group (NASDAQ:CRDO) CTO Chi Fung Cheng Sells 27,500 Shares of Stock

Key Points

• Credo CTO Chi Fung Cheng sold 27,500 shares for approximately $5.65 million at an average price of $205.54 under a pre-arranged Rule 10b5-1 plan. He still owned about 5.8 million shares, with the sale reducing his stake by 0.47%.
• CRDO shares fell to $177.50, well below the 50-day moving average of $236.79, amid a broader pullback. Despite the decline, the company reported 157% year-over-year revenue growth, earnings above estimates, and $437 million in quarterly revenue.
• Analyst sentiment remains favorable, with a consensus “Buy” rating and an average price target of $266.17, although the stock trades at a high P/E ratio of 71.57 and Cheng has reported multiple recent sales.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) CTO Chi Fung Cheng sold 27,500 shares of the business's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $205.54, for a total transaction of $5,652,350.00. Following the transaction, the chief technology officer owned 5,799,870 shares in the company, valued at approximately $1,192,105,279.80. This represents a 0.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available 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, July 21st, Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $222.34, for a total value of $6,114,350.00.
• On Wednesday, July 8th, Chi Fung Cheng sold 3,790 shares of Credo Technology Group stock. The stock was sold at an average price of $258.71, for a total value of $980,510.90.
• On Tuesday, July 7th, Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $243.06, for a total value of $6,684,150.00.
• On Tuesday, June 30th, Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $269.84, for a total value of $7,420,600.00.
• On Tuesday, June 23rd, Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $270.94, for a total value of $7,450,850.00.
• On Tuesday, June 16th, Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $246.69, for a total value of $6,783,975.00.
• On Thursday, June 11th, Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $259.53, for a total value of $7,137,075.00.
• On Friday, May 1st, Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $178.99, for a total value of $4,922,225.00.

Credo Technology Group Stock Performance

Shares of NASDAQ CRDO traded down $14.78 during trading hours on Wednesday, hitting $177.50. The stock had a trading volume of 6,917,991 shares, compared to its average volume of 7,634,283. The company has a market capitalization of $33.10 billion, a P/E ratio of 71.57, a P/E/G ratio of 0.95 and a beta of 3.20. The firm's 50-day moving average price is $236.79 and its two-hundred day moving average price is $170.98. Credo Technology Group Holding Ltd. has a 52 week low of $86.49 and a 52 week high of $308.67.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings data on Monday, June 1st. The company reported $1.16 EPS for the quarter, topping analysts' consensus estimates of $1.02 by $0.14. The firm had revenue of $437.00 million for the quarter, compared to the consensus estimate of $431.80 million. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The firm's revenue was up 157.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.20 earnings per share. As a group, analysts expect that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the stock. Jefferies Financial Group raised their price target on shares of Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Stifel Nicolaus upped their price objective on shares of Credo Technology Group from $250.00 to $350.00 and gave the stock a "buy" rating in a report on Monday, June 22nd. TD Cowen increased their target price on shares of Credo Technology Group from $240.00 to $260.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. The Goldman Sachs Group restated a "buy" rating and set a $250.00 target price on shares of Credo Technology Group in a report on Tuesday, June 2nd. Finally, Rosenblatt Securities raised their target price on Credo Technology Group from $175.00 to $215.00 and gave the company a "neutral" rating in a report on Tuesday, June 2nd. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Credo Technology Group has an average rating of "Buy" and an average target price of $266.17.

Trending Headlines about Credo Technology Group

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: One analysis argues that the sell-off in Credo Technology Group looks overblown, pointing to the company’s exposure to AI data-center connectivity and continued infrastructure spending. Credo’s latest quarterly results also showed 157% year-over-year revenue growth, adjusted earnings above expectations, and analysts’ consensus rating remains “Buy.” Credo Stock Sell-Off Looks Overblown
• Positive Sentiment: Credo was included in Zacks’ Rank #1 “Strong Buy” growth-stock list, reinforcing favorable near-term analyst sentiment. Best Growth Stocks to Buy for July 28th
• Neutral Sentiment: An article identifies Credo among AI stocks experiencing a summer pullback while arguing that spending trends, analyst price targets, and the company’s growth catalysts remain intact. 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest?
• Neutral Sentiment: An announcement about Aeluma, Inc. and a proposed CHIPS Act award involving the “CRDO” research office is unrelated to Credo Technology Group and should not be treated as news about CRDO.
• Negative Sentiment: Credo CTO Chi Fung Cheng sold 27,500 shares worth approximately $6.1 million. The transaction was made under a pre-arranged Rule 10b5-1 plan and reduced his holdings by only 0.47%, but it adds to a series of reported sales and may weigh on investor sentiment. Insider Selling: Credo Technology Group CTO Sells 27,500 Shares

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CRDO. City Center Advisors LLC raised its stake in Credo Technology Group by 2.1% during the 2nd 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 during the last quarter. Versant Capital Management Inc grew its position in Credo Technology Group by 8.0% in the 2nd quarter. Versant Capital Management Inc now owns 755 shares of the company's stock worth $205,000 after purchasing an additional 56 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in Credo Technology Group by 16.2% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 552 shares of the company's stock worth $80,000 after purchasing an additional 77 shares during the last quarter. QRG Capital Management Inc. increased its holdings in shares of Credo Technology Group by 1.7% during the 1st quarter. QRG Capital Management Inc. now owns 5,402 shares of the company's stock worth $507,000 after purchasing an additional 91 shares during the period. Finally, Bank of Nova Scotia increased its holdings in shares of Credo Technology Group by 1.6% during the 1st quarter. Bank of Nova Scotia now owns 6,026 shares of the company's stock worth $566,000 after purchasing an additional 92 shares during the period. Institutional investors and hedge funds own 80.46% of the company's stock.

About Credo Technology Group

Credo Technology Group, Inc NASDAQ: CRDO is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo's product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.

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