Credo Technology Group (NASDAQ:CRDO) Shares Up 11.4% - Time to Buy?

Key Points

• Credo Technology Group shares jumped 11.4%, hitting an intraday high of $268.18 as trading volume surged well above average.
• Recent earnings and guidance commentary remain strong: the company beat quarterly EPS and revenue estimates, with revenue up 157% year over year, and analysts have generally raised price targets and stayed bullish.
• Sentiment is largely positive but not without risks, as Credo is benefiting from AI and cloud networking demand and its Dust Photonics acquisition, while customer concentration and recent insider selling could temper enthusiasm.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares were up 11.4% on Thursday . The company traded as high as $268.18 and last traded at $264.76. Approximately 12,926,301 shares traded hands during mid-day trading, an increase of 72% from the average daily volume of 7,512,586 shares. The stock had previously closed at $237.68.

More Credo Technology Group News

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

• Positive Sentiment: Analysts have turned more constructive after Credo’s earnings beat, with Mizuho and Bank of America raising price targets and maintaining bullish ratings, reinforcing expectations for continued upside. Mizuho Raises PT on Credo Technology (CRDO) After FQ4 2026 Earnings
• Positive Sentiment: Credo’s acquisition of Dust Photonics expands its reach into silicon photonics and optical connectivity, a move tied to rising AI and cloud networking demand. Credo Technology Group Eyes AI Growth With Dust Photonics Silicon Push
• Positive Sentiment: Recent coverage highlighted that CRDO has strong earnings estimate revisions and could keep climbing as investors price in sustained growth. Can Credo Technology Group (CRDO) Run Higher on Rising Earnings Estimates?
• Positive Sentiment: Bullish articles continue to frame Credo as an attractive AI infrastructure stock, citing its rapid revenue growth and improving forward valuation. Is Credo Technology Group Holding Ltd (CRDO) A Good Stock To Buy Now?
• Neutral Sentiment: One recurring concern is customer concentration risk, though commentary suggests diversification into neo clouds and broader customers could gradually reduce that risk. Credo's Diversification Push: Can It Cut Customer Concentration Risk?
• Neutral Sentiment: Insider selling by the CEO and a director may modestly weigh on sentiment, but the transactions were disclosed as routine and do not appear to change the company’s operating outlook.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. JPMorgan Chase & Co. lifted their target price on shares of Credo Technology Group from $230.00 to $250.00 and gave the company an "overweight" rating in a research note on Tuesday, June 2nd. Zacks Research upgraded Credo Technology Group from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 19th. Stifel Nicolaus set a $250.00 price target on Credo Technology Group in a report on Wednesday, May 27th. The Goldman Sachs Group restated a "buy" rating and issued a $250.00 price objective on shares of Credo Technology Group in a research report on Tuesday, June 2nd. Finally, Rosenblatt Securities upped their price objective on Credo Technology Group from $175.00 to $215.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 2nd. One investment analyst has 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 data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $248.41.

Credo Technology Group Price Performance

The stock has a 50-day moving average price of $177.95 and a two-hundred day moving average price of $149.16. The stock has a market cap of $48.83 billion, a PE ratio of 106.76, a price-to-earnings-growth ratio of 1.23 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its earnings results on Monday, June 1st. The company reported $1.16 EPS for the quarter, topping analysts' consensus estimates of $1.02 by $0.14. The company 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 36.99% and a net margin of 35.37%.The firm's revenue for the quarter was up 157.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.20 earnings per share. Equities research analysts expect that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current year.

Insider Buying and Selling

In other news, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $103.19, for a total transaction of $2,837,725.00. Following the completion of the transaction, the chief technology officer directly owned 6,162,370 shares in the company, valued at approximately $635,894,960.30. This represents a 0.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Joseph Brennan sold 54,984 shares of the business's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $218.57, for a total transaction of $12,017,852.88. Following the completion of the sale, the chief executive officer owned 367,327 shares in the company, valued at $80,286,662.39. This represents a 13.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 348,284 shares of company stock valued at $51,616,969 over the last quarter. Corporate insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

A number of large investors have recently made changes to their positions in CRDO. Northwestern Mutual Wealth Management Co. grew its position in Credo Technology Group by 16.2% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 552 shares of the company's stock worth $80,000 after acquiring an additional 77 shares in the last quarter. Illinois Municipal Retirement Fund increased its stake in Credo Technology Group by 0.6% during the third quarter. Illinois Municipal Retirement Fund now owns 15,783 shares of the company's stock worth $2,298,000 after acquiring an additional 91 shares during the last quarter. QRG Capital Management Inc. raised its position in Credo Technology Group by 1.7% during the first quarter. QRG Capital Management Inc. now owns 5,402 shares of the company's stock valued at $507,000 after purchasing an additional 91 shares during the period. Bank of Nova Scotia raised its position in Credo Technology Group by 1.6% during the first quarter. Bank of Nova Scotia now owns 6,026 shares of the company's stock valued at $566,000 after purchasing an additional 92 shares during the period. Finally, Mark Sheptoff Financial Planning LLC lifted its stake in shares of Credo Technology Group by 2.0% in the 4th quarter. Mark Sheptoff Financial Planning LLC now owns 5,150 shares of the company's stock valued at $741,000 after purchasing an additional 100 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors.

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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