Credo Technology Group (NASDAQ:CRDO) Trading 5.5% Higher - Still a Buy?

Key Points

• Credo reported a record quarter — EPS $1.07 vs $0.78 estimate and revenue $407.0M (+201% YoY) with ~31.8% net margin — and is showcasing optical solutions at OFC, boosting investor optimism around AI/datacenter demand.
• There have been notable insider sales (including the CEO and CTO) and insiders sold 518,601 shares in the last 90 days (~$70.8M), which could create short‑term pressure despite large remaining insider holdings.
• Shares were up 5.5% to $117.69, the company has a market cap of ~$21.7B and a P/E around 65, and analysts have an average Buy rating with a consensus target of $206.33, implying potential upside but a high valuation.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares were up 5.5% during trading on Friday . The stock traded as high as $117.90 and last traded at $117.69. Approximately 4,464,859 shares changed hands during mid-day trading, a decline of 38% from the average daily volume of 7,152,887 shares. The stock had previously closed at $111.57.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Strong quarterly results and growth outlook: Credo reported a record quarter with a sizable EPS and revenue beat, plus high margins and strong year‑over‑year revenue growth — a key reason investors have been bidding the stock up. Credo Technology Soars on Record Earnings and Growth
• Positive Sentiment: Product visibility at OFC 2026: Credo will showcase optical solutions for AI scale‑out fabrics at the OFC conference, highlighting demand exposure to AI/datacenter customers that can support revenue growth. Credo to Showcase Optical Solutions for AI Scale-Out Fabrics at OFC 2026
• Positive Sentiment: Analyst/BRI commentary bullish on long‑term thesis: A recent Seeking Alpha piece highlights growing hyperscaler adoption, ~88% AEC market share, and an R&D/sampling pipeline (next‑gen 1.6Tb AECs and active cables) that could drive material revenue recognition in FY2027 — supporting a constructive investment case. Credo: Meltdown's A Gift - Growing Hyperscaler Adoption, Robust R&D/Sampling Cadence
• Neutral Sentiment: Short interest reporting appears anomalous: Recent short‑interest entries show 0 shares and NaN changes — likely a reporting/data issue rather than a meaningful change in bearish positioning; this should be treated as neutral until clarified.
• Negative Sentiment: Insider sales by senior executives may create short‑term pressure: CEO William Brennan sold a total of 68,016 shares on March 11 (multiple filings) and CTO Chi Fung Cheng sold 27,500 shares the same day. These disclosures can trigger investor concern about insider liquidity or timing, even though insiders still hold large positions. SEC filings: CEO Form 4 and CTO Form 4

Analyst Ratings Changes

CRDO has been the topic of several recent research reports. Weiss Ratings restated a "hold (c)" rating on shares of Credo Technology Group in a research report on Monday, December 29th. New Street Research set a $240.00 target price on shares of Credo Technology Group in a report on Tuesday, December 2nd. Mizuho cut their target price on shares of Credo Technology Group from $225.00 to $200.00 and set an "outperform" rating on the stock in a report on Tuesday, March 3rd. Barclays reaffirmed an "overweight" rating and issued a $260.00 target price on shares of Credo Technology Group in a research note on Thursday, January 15th. Finally, KGI Securities raised shares of Credo Technology Group from a "hold" rating to an "outperform" rating and set a $230.00 price target for the company in a research report on Tuesday, December 2nd. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $206.33.

Credo Technology Group Stock Performance

The stock has a market capitalization of $21.71 billion, a P/E ratio of 65.38 and a beta of 2.67. The stock has a 50-day moving average price of $127.26 and a two-hundred day moving average price of $143.02.

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

Insider Transactions at Credo Technology Group

In other news, Director Pantas Sutardja sold 1,875 shares of the stock in a transaction that occurred on Friday, January 30th. The stock was sold at an average price of $128.67, for a total value of $241,256.25. Following the completion of the transaction, the director owned 5,892,034 shares of the company's stock, valued at approximately $758,128,014.78. This represents a 0.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO William Joseph Brennan sold 18,016 shares of Credo Technology Group stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $117.68, for a total value of $2,120,122.88. Following the sale, the chief executive officer owned 234,609 shares in the company, valued at $27,608,787.12. This represents a 7.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 518,601 shares of company stock valued at $70,752,445. Insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Hedge funds and other institutional investors have recently modified their holdings of the business. NewEdge Advisors LLC boosted its stake in Credo Technology Group by 128.4% during the first quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock worth $284,000 after acquiring an additional 3,972 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Credo Technology Group by 63.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock valued at $61,235,000 after purchasing an additional 589,151 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Credo Technology Group by 2.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company's stock valued at $12,480,000 after purchasing an additional 7,107 shares during the last quarter. Atria Investments Inc bought a new stake in shares of Credo Technology Group in the 2nd quarter worth approximately $239,000. Finally, Savant Capital LLC bought a new stake in shares of Credo Technology Group in the 2nd quarter worth approximately $912,000. 80.46% of the stock is owned by hedge funds and other institutional investors.

Credo Technology Group Company Profile

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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