Credo Technology Group (NASDAQ:CRDO) Trading Down 1% on Insider Selling

Key Points

• CTO Chi Fung Cheng sold two blocks of stock in April (totaling 55,000 shares for roughly $10.1M) under a pre‑arranged Rule 10b5‑1 plan, a move that coincided with the shares trading down about 1% on lighter midday volume.
• Analysts remain broadly positive, with a MarketBeat consensus of “Moderate Buy” and an average price target of about $207.81, while individual targets range from raised levels (Goldman, Rosenblatt, Needham) up to $260 (Barclays).
• Credo posted a strong quarter, beating estimates with EPS $1.07 vs. $0.78 and revenue $407M (up 201.5% YoY) and high margins, although the stock carries a rich valuation (market cap ~$32.1B and PE ~96.7).

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price fell 1% during trading on Thursday after an insider sold shares in the company. The stock traded as low as $167.50 and last traded at $174.01. 4,418,857 shares were traded during mid-day trading, a decline of 39% from the average session volume of 7,216,670 shares. The stock had previously closed at $175.77.

Specifically, CTO Chi Fung Cheng sold 27,500 shares of the company's stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $179.33, for a total transaction of $4,931,575.00. Following the completion of the sale, the chief technology officer directly owned 6,052,370 shares of the company's stock, valued at approximately $1,085,371,512.10. This represents a 0.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction that occurred on Wednesday, April 22nd. The stock was sold at an average price of $188.02, for a total transaction of $5,170,550.00. Following the completion of the transaction, the chief technology officer owned 6,079,870 shares in the company, valued at $1,143,137,157.40. The trade was a 0.45% 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.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on CRDO. The Goldman Sachs Group boosted their price objective on shares of Credo Technology Group from $150.00 to $170.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. Rosenblatt Securities lifted their target price on Credo Technology Group from $125.00 to $175.00 and gave the company a "neutral" rating in a research report on Wednesday, April 15th. Craig Hallum reissued a "buy" rating and set a $200.00 price target on shares of Credo Technology Group in a report on Tuesday, March 3rd. Barclays restated an "overweight" rating and issued a $260.00 price target on shares of Credo Technology Group in a research report on Thursday, January 15th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $220.00 price objective on shares of Credo Technology Group in a research note on Wednesday, April 15th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $207.81.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: MarketBeat lists Credo as one of “5 Stocks to Buy in May” citing settled patent disputes, critical IP in Active Electric Cables (AECs) and strong analyst interest — a direct bullish narrative for Credo’s revenue prospects. Article Title
• Positive Sentiment: MarketBeat / other reports highlight Credo’s recent quarterly beat (strong revenue growth and high margins) and broad analyst “Buy” coverage with an average price target above current levels — fundamental support for the stock. SEC Filing
• Neutral Sentiment: Zacks includes CRDO on a momentum‑anomaly screen as broader market volatility lifts momentum plays — that signals continued short‑term trading interest but not a change to the company’s fundamentals. Article Title
• Neutral Sentiment: Macro AI capex stories (Zacks, 24/7 Wall St.) argue multi‑hundred‑billion to trillion‑dollar data‑center buildouts through 2026 will boost demand for connectivity, memory and transceivers — a positive structural tailwind for Credo but not an immediate earnings catalyst. Article Title Article Title
• Neutral Sentiment: Kalkine and market commentary note Credo’s recent rally drew index and retail attention — increased visibility can lengthen rallies but also raise volatility and faster rotation risk. Article Title
• Negative Sentiment: CTO Chi Fung Cheng has repeatedly sold large blocks of CRDO shares via a pre‑arranged Rule 10b5‑1 plan (multiple transactions in April), which investors often view as supply pressure even if the trades are preplanned. See the SEC filing for the details. SEC Filing
• Negative Sentiment: Valuation/mean‑reversion risk: coverage pieces (24/7 Wall St., 247WallSt) note CRDO has already rallied sharply (yearly gains in the hundreds of percent) and some models show limited upside near current prices — raises risk of consolidation/correction. Article Title

Credo Technology Group Trading Down 1.0%

The firm has a market cap of $32.10 billion, a PE ratio of 96.67 and a beta of 2.72. The stock has a 50 day simple moving average of $125.11 and a 200-day simple moving average of $139.25.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Monday, March 2nd. The company reported $1.07 EPS for the quarter, beating the consensus estimate of $0.78 by $0.29. Credo Technology Group had a return on equity of 29.63% and a net margin of 31.81%.The business had revenue of $407.01 million for the quarter, compared to the consensus estimate of $385.94 million. During the same period in the previous year, the business earned $0.25 earnings per share. The business's revenue was up 201.5% on a year-over-year basis. On average, equities research analysts expect that Credo Technology Group Holding Ltd. will post 2.36 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Sumitomo Mitsui Trust Group Inc. raised its position in shares of Credo Technology Group by 5.2% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 326,592 shares of the company's stock valued at $30,657,000 after buying an additional 16,237 shares during the last quarter. Resona Asset Management Co. Ltd. boosted its position in shares of Credo Technology Group by 3.1% during the first quarter. Resona Asset Management Co. Ltd. now owns 47,237 shares of the company's stock worth $4,389,000 after acquiring an additional 1,435 shares during the last quarter. Downshift Financial LLC bought a new position in shares of Credo Technology Group during the first quarter worth $188,000. Walser Wealth Management Company A Ltd Liability Co purchased a new position in Credo Technology Group during the first quarter valued at $226,000. Finally, Stephens Inc. AR increased its holdings in Credo Technology Group by 26.1% in the 1st quarter. Stephens Inc. AR now owns 3,534 shares of the company's stock valued at $332,000 after acquiring an additional 732 shares during the last quarter. 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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