Credo Technology Group (NASDAQ:CRDO) Shares Down 2.1% Following Insider Selling

Key Points

• Shares dipped about 2.1% mid‑day after insider selling; CTO Chi Fung Cheng sold 27,500 shares at an average of $103.19 under a Rule 10b5‑1 plan and other executives also disposed of stock.
• Credo reported a blowout quarter—EPS $1.07 vs. $0.78 estimate and revenue up 201.5% YoY—and analysts maintain an overall Buy consensus with a price target near $206.33.
• Risks remain despite momentum: the company’s market cap is about $19.9B with a P/E near 60 and high customer concentration and a beta of 2.72 could amplify downside if hyperscaler spending slows.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares dropped 2.1% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $106.09 and last traded at $107.93. Approximately 4,363,496 shares were traded during mid-day trading, a decline of 38% from the average daily volume of 6,982,095 shares. The stock had previously closed at $110.21.

Specifically, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $103.19, for a total value of $2,837,725.00. Following the transaction, the chief technology officer directly owned 6,162,370 shares of the company's stock, valued at $635,894,960.30. The trade was a 0.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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. Also, CTO Chi Fung Cheng sold 2,434 shares of the company's stock in a transaction that occurred on Sunday, April 5th. The shares were sold at an average price of $101.45, for a total value of $246,929.30. Following the completion of the sale, the chief technology officer owned 108,786 shares in the company, valued at $11,036,339.70. The trade was a 2.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In other Credo Technology Group news, COO Yat Tung Lam sold 3,180 shares of the firm's stock in a transaction that occurred on Sunday, April 5th. The shares were sold at an average price of $101.45, for a total transaction of $322,611.00. Following the completion of the transaction, the chief operating officer owned 2,610,329 shares in the company, valued at approximately $264,817,877.05. This trade represents a 0.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on CRDO shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Credo Technology Group in a research note on Friday, March 27th. Susquehanna cut their price target on shares of Credo Technology Group from $230.00 to $170.00 and set a "positive" rating on the stock in a research report on Tuesday, March 3rd. Mizuho lowered their price objective on Credo Technology Group from $225.00 to $200.00 and set an "outperform" rating for the company in a research report on Tuesday, March 3rd. Zacks Research raised Credo Technology Group from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, March 3rd. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $220.00 target price on shares of Credo Technology Group in a research note on Tuesday, March 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $206.33.

Credo Technology Group News Roundup

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

• Positive Sentiment: Very strong fundamentals and analyst support — Credo reported large recent revenue beats (201% year‑over‑year growth last quarter) and most analysts still rate the stock a Buy with a consensus target near ~$200, leaving material upside from current levels. Credo Technology's 201.49% Revenue Growth Makes the YTD Dip a Buy Opportunity to $125.16
• Positive Sentiment: Hyperscaler wins and AEC adoption driving AI demand — expansion into hyperscaler accounts and rising adoption of short‑reach AEC (copper) links underpin near‑term demand from AI data center builds. Credo Technology Expands Hyperscaler Reach: Concern or Strength?
• Positive Sentiment: Legal overhang removed — confidential settlements and license agreements with TE Connectivity and Molex dismiss related lawsuits, reducing a prior source of valuation uncertainty. Credo Settles Lawsuits With TE And Molex As Valuation Debate Remains
• Neutral Sentiment: Watchlist/coverage mentions — roundup pieces (e.g., Bridget’s Buys, MarketBeat) flag CRDO as a high‑growth but volatile data‑center name; useful context but less likely to drive immediate price moves. Bridget’s Buys: The Bottom 5 Stocks and What to Do Next
• Negative Sentiment: Clustered insider selling — multiple Form 4s show sizable sales by the CTO (27,500 shares on April 6 and several other recent disposals) executed under 10b5‑1 plans; large dollar amounts can sap near‑term sentiment even if ownership percentages change little. Insider Selling: CTO Sells 27,500 Shares
• Negative Sentiment: Customer concentration and valuation risk — heavy reliance on a few hyperscalers raises execution/pricing risk if spending shifts; elevated multiples (high P/E) mean any slowdown could pressure the stock. Credo Technology Expands Hyperscaler Reach: Concern or Strength?

Credo Technology Group Stock Performance

The company has a market capitalization of $19.91 billion, a P/E ratio of 59.96 and a beta of 2.72. The business has a fifty day moving average of $111.85 and a 200-day moving average of $137.56.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings data on Monday, March 2nd. The company reported $1.07 earnings per share for the quarter, beating analysts' consensus estimates of $0.78 by $0.29. The firm had revenue of $407.01 million for the quarter, compared to analyst estimates of $385.94 million. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. The business's quarterly revenue was up 201.5% compared to the same quarter last year. During the same period last year, the firm earned $0.25 earnings per share. Sell-side analysts anticipate that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds have recently added to or reduced their stakes in CRDO. Vanguard Group Inc. lifted its holdings in shares of Credo Technology Group by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 16,585,229 shares of the company's stock valued at $2,386,449,000 after purchasing an additional 59,849 shares in the last quarter. JPMorgan Chase & Co. lifted its stake in Credo Technology Group by 18.3% during the 3rd quarter. JPMorgan Chase & Co. now owns 7,699,456 shares of the company's stock valued at $1,121,118,000 after acquiring an additional 1,190,522 shares in the last quarter. State Street Corp boosted its holdings in Credo Technology Group by 23.4% during the 4th quarter. State Street Corp now owns 4,486,320 shares of the company's stock worth $645,537,000 after acquiring an additional 849,654 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Credo Technology Group by 5.0% in the 4th quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company's stock worth $555,117,000 after acquiring an additional 184,676 shares in the last quarter. Finally, Corient Private Wealth LLC raised its holdings in shares of Credo Technology Group by 239,024.5% in the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company's stock valued at $517,835,000 after purchasing an additional 3,597,318 shares during the last quarter. 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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