Credo Technology Group (NASDAQ:CRDO) Shares Down 5.6% After Insider Selling

Key Points

• Credo shares fell 5.6% to $224.63 after insiders sold stock under pre-arranged Rule 10b5-1 plans. The CTO sold about $5.8 million worth of shares, while the COO sold approximately $22.5 million.
• The company’s latest quarter showed strong momentum: revenue surged 157% year over year to $437 million, while EPS of $1.16 exceeded the $1.02 consensus estimate.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $266.17, but valuation concerns remain as the stock trades at roughly 90.6 times earnings; Zacks recently downgraded it to “Hold.”

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price was down 5.6% on Wednesday following insider selling activity. The company traded as low as $223.56 and last traded at $224.63. Approximately 4,188,002 shares changed hands during trading, a decline of 45% from the average daily volume of 7,568,087 shares. The stock had previously closed at $237.92.

Specifically, CTO Chi Fung Cheng sold 27,473 shares of Credo Technology Group stock in a transaction on Friday, July 31st. The stock was sold at an average price of $209.53, for a total transaction of $5,756,417.69. Following the transaction, the chief technology officer owned 5,772,397 shares in the company, valued at $1,209,490,343.41. The trade was a 0.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Tung Lam sold 50,000 shares of the company's stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $213.33, for a total transaction of $10,666,500.00. Following the completion of the sale, the chief operating officer directly owned 300,000 shares of the company's stock, valued at $63,999,000. This represents a 14.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, COO Yat Tung Lam sold 55,441 shares of the firm's stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the sale, the chief operating officer directly owned 2,529,169 shares in the company, valued at approximately $538,763,580.38. This trade represents a 2.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Weiss Ratings upgraded shares of Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. Roth Capital raised their price target on shares of Credo Technology Group from $200.00 to $300.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Needham & Company LLC lifted their price target on shares of Credo Technology Group from $220.00 to $275.00 and gave the company a "buy" rating in a research report on Monday, June 1st. TD Cowen upped their price objective on Credo Technology Group from $240.00 to $260.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Finally, Zacks Research lowered Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Credo Technology Group has an average rating of "Moderate Buy" and an average target price of $266.17.

Credo Technology Group News Roundup

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

• Positive Sentiment: Credo is being highlighted as a leading AI-photonics beneficiary alongside Lumentum, with demand for high-speed optical connectivity supported by expanding data-center and AI infrastructure spending. Analysts point to Credo’s growing optical portfolio and potentially strong revenue growth. Buy These 2 High-Flying AI-Led Photonics Stocks With More Room to Grow
• Positive Sentiment: At Flash Memory Summit 2026, Credo showcased interconnect products designed for AI memory and storage applications. The products are aimed at data-center requirements for higher bandwidth, lower latency and improved connectivity, potentially expanding the company’s addressable market. Credo Technology Group Showcased AI Interconnects
• Positive Sentiment: Longer-term bullish commentary argues that Credo could deliver substantial shareholder returns by 2030 if AI infrastructure spending remains strong, the company continues gaining customers and its interconnect products scale successfully. The outlook follows revenue that tripled and a recent earnings beat. Price Prediction: Credo Will Trade at This Price in 2030
• Neutral Sentiment: Credo’s latest quarterly results remain a fundamental support: revenue rose 157% year over year to $437 million, exceeding estimates, while EPS of $1.16 topped the $1.02 consensus. However, the stock’s roughly 91 price-to-earnings ratio leaves limited room for execution or growth disappointments.
• Negative Sentiment: Zacks Research downgraded CRDO from “Strong Buy” to “Hold,” reinforcing concerns that the stock may already reflect much of its AI opportunity. Other commentary cited premium valuation, customer concentration and execution risk despite the strong year-to-date performance. Zacks Research Coverage
• Negative Sentiment: Insiders reported substantial profit-taking on July 31 under pre-arranged Rule 10b5-1 plans. CTO Chi Fung Cheng sold 27,473 shares for approximately $5.8 million, while COO Yat Tung Lam sold 105,441 shares worth about $22.5 million. Both retain significant holdings, but the sales add to investor caution following CRDO’s powerful rally. SEC Insider Filings

Credo Technology Group Stock Down 5.6%

The firm has a market capitalization of $41.89 billion, a price-to-earnings ratio of 90.58, a PEG ratio of 1.00 and a beta of 3.23. The business's 50-day simple moving average is $236.93 and its two-hundred day simple moving average is $172.92.

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

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CRDO. Reflection Asset Management purchased a new stake in shares of Credo Technology Group in the 4th quarter valued at $25,000. Acumen Wealth Advisors LLC acquired a new position in Credo Technology Group in the 4th quarter valued at about $25,000. Flagship Harbor Advisors LLC acquired a new position in Credo Technology Group in the 4th quarter valued at about $32,000. Smallwood Wealth Investment Management LLC purchased a new stake in Credo Technology Group during the fourth quarter worth about $36,000. Finally, Van ECK Associates Corp purchased a new stake in Credo Technology Group during the fourth quarter worth about $37,000. 80.46% of the stock is currently owned by institutional investors and hedge funds.

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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