Credo Technology Group (NASDAQ:CRDO) Shares Down 2.5% - Should You Sell?

Key Points

• Credo Technology Group shares fell 2.5% on Friday, trading as low as $185.87 before last changing hands near $202.68, with volume slightly above average.
• The company has had strong recent fundamentals: its latest quarter beat estimates on both EPS and revenue, with revenue up 157% year over year and free cash flow rising to $177.5 million.
• Despite the operational strength, recent insider selling has drawn attention, including multiple sizable sales by executives and directors, even though some were made under pre-arranged 10b5-1 plans.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) were down 2.5% during trading on Friday . The stock traded as low as $185.87 and last traded at $202.68. Approximately 8,266,960 shares were traded during mid-day trading, an increase of 6% from the average session volume of 7,767,914 shares. The stock had previously closed at $207.97.

More Credo Technology Group News

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

• Positive Sentiment: Credo’s free cash flow jumped to $177.5 million, boosting liquidity and giving the company more flexibility to fund innovation, acquisitions, and AI-focused connectivity growth. Credo's Free Cash Flow Soars: Can the Momentum Continue?
• Positive Sentiment: Polen Capital’s investor letter and related coverage kept Credo on investors’ radar as a fundamentally strong growth name, reinforcing the bullish case for the stock. Here’s Why Credo Technology Group Holding Ltd (CRDO) is on the Detector List of the Fund
• Neutral Sentiment: A Seeking Alpha piece on top stocks for the second half of 2026 was broadly constructive on high-quality, volatility-resistant names, but it did not provide a specific new catalyst for Credo. Steven Cress' Top 2 Stocks H2 2026
• Negative Sentiment: Several reports said a Credo executive and the co-founder/CTO sold shares in large amounts, even though the sales were pre-planned under Rule 10b5-1 trading plans; investors may still view the selling as a sign that insiders are taking profits after a big rally. A Credo Executive Sold Nearly $24 Million in Stock Across Two Sales in One Day
• Negative Sentiment: Another insider sale totaling about $12.6 million added to concerns that some executives are locking in gains after the stock’s strong year-to-date run. What This Credo Insider's $12.6 Million Sale Means With Shares Up 121%

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on CRDO shares. Needham & Company LLC lifted their price objective on Credo Technology Group from $220.00 to $275.00 and gave the stock a "buy" rating in a research report on Monday, June 1st. Roth Capital increased their target price on Credo Technology Group from $200.00 to $300.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Rosenblatt Securities raised their price target on Credo Technology Group from $175.00 to $215.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 2nd. Evercore assumed coverage on Credo Technology Group in a report on Monday, June 22nd. They issued an "outperform" rating and a $325.00 price target for the company. Finally, Mizuho upped their price objective on Credo Technology Group from $260.00 to $290.00 and gave the company an "outperform" rating in a research report on Tuesday, June 2nd. Two investment 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. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of $263.11.

Credo Technology Group Price Performance

The firm has a market cap of $37.80 billion, a price-to-earnings ratio of 81.73, a price-to-earnings-growth ratio of 1.04 and a beta of 3.20. The business's 50-day moving average price is $231.82 and its two-hundred day moving average price is $166.88.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its earnings results on Monday, June 1st. The company reported $1.16 earnings per share (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 analyst estimates of $431.80 million. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. Credo Technology Group's revenue was up 157.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.20 earnings per share. As a group, sell-side analysts forecast that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Sylvia Acevedo sold 2,208 shares of the stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $211.00, for a total transaction of $465,888.00. Following the transaction, the director directly owned 16,337 shares in the company, valued at approximately $3,447,107. This represents a 11.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CTO Chi Fung Cheng sold 3,790 shares of the firm's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $258.71, for a total value of $980,510.90. Following the completion of the sale, the chief technology officer directly owned 140,358 shares in the company, valued at approximately $36,312,018.18. The trade was a 2.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 329,662 shares of company stock worth $76,068,196 over the last ninety days. Company insiders own 11.84% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of CRDO. Crewe Advisors LLC boosted its position in shares of Credo Technology Group by 163.1% in the fourth quarter. Crewe Advisors LLC now owns 171 shares of the company's stock worth $25,000 after acquiring an additional 106 shares during the last quarter. Reflection Asset Management acquired a new position in Credo Technology Group during the fourth quarter worth approximately $25,000. Acumen Wealth Advisors LLC purchased a new position in Credo Technology Group during the fourth quarter worth approximately $25,000. Flagship Harbor Advisors LLC purchased a new position in Credo Technology Group during the fourth quarter worth approximately $32,000. Finally, AlphaCentric Advisors LLC acquired a new position in shares of Credo Technology Group in the 1st quarter valued at $33,000. 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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