Credo Technology Group (NASDAQ:CRDO) Trading Down 5.3% on Insider Selling

Key Points

• Credo Technology Group shares fell 5.3% on Friday after insider selling, trading as low as $241.12 before closing at $250.81. Trading volume also surged to about 9.0 million shares, above the recent average.
• Several insiders sold stock recently, including Director Fariba Danesh and CTO Chi Fung Cheng. Cheng’s sale was executed under a pre-arranged 10b5-1 plan and was tied to tax withholding on vested equity awards.
• Despite the selloff, analyst sentiment remains broadly positive: multiple firms raised price targets, and Credo recently beat earnings expectations with 157% year-over-year revenue growth. The company continues to benefit from strong AI and data-center connectivity demand.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price dropped 5.3% during trading on Friday after an insider sold shares in the company. The company traded as low as $241.12 and last traded at $250.81. Approximately 8,995,156 shares traded hands during trading, an increase of 20% from the average daily volume of 7,526,724 shares. The stock had previously closed at $264.76.

Specifically, Director Fariba Danesh sold 1,100 shares of the firm's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $236.34, for a total value of $259,974.00. Following the sale, the director owned 7,017 shares of the company's stock, valued at $1,658,397.78. This trade represents a 13.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Chi Fung Cheng sold 27,500 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $259.53, for a total transaction of $7,137,075.00. Following the completion of the sale, the chief technology officer directly owned 5,992,370 shares in the company, valued at approximately $1,555,199,786.10. This trade represents a 0.46% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In related news, Director Sylvia Acevedo sold 2,208 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $211.00, for a total value of $465,888.00. Following the sale, the director owned 16,337 shares of the company's stock, valued at $3,447,107. This trade represents a 11.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.

Analysts Set New Price Targets

CRDO has been the topic of several analyst reports. Bank of America raised their target price on shares of Credo Technology Group from $210.00 to $252.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Jefferies Financial Group raised their target price on shares of Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Rothschild & Co Redburn began coverage on Credo Technology Group in a research note on Friday, May 1st. They set a "buy" rating and a $206.00 target price for the company. Roth Mkm boosted their target price on Credo Technology Group from $200.00 to $300.00 and gave the stock a "buy" rating in a research note on Tuesday, June 2nd. Finally, Rosenblatt Securities boosted their target price 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 research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $248.41.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Credo completed its acquisition of DustPhotonics, adding silicon photonics capabilities and strengthening its position in 800G, 1.6T, and 3.2T optical connectivity for AI and cloud networking demand. Credo Technology (CRDO) Completes Acquisition of DustPhotonics to Expand Optical Connectivity Portfolio
• Positive Sentiment: Several recent articles highlighted Credo as a bullish stock idea, citing rising estimates, strong growth outlook, and AI-linked catalysts that could support further upside. Zacks Investment Ideas feature highlights: Concrete Pumping, Atlanticus and Credo Technology
• Positive Sentiment: Analyst coverage remains constructive after earnings, with price-target increases and commentary pointing to continued demand from data-center interconnect and inference infrastructure. Mizuho Raises PT on Credo Technology (CRDO) After FQ4 2026 Earnings
• Positive Sentiment: Recent earnings were strong, with Credo beating expectations on both EPS and revenue, reinforcing the view that its growth story remains intact.
• Neutral Sentiment: One Seeking Alpha note downgraded CRDO to Hold, arguing the shares may be running ahead of fundamentals even though long-term demand trends remain favorable. Credo: Don't Chase This Winner Over The Cliff - Downgrade To Hold
• Neutral Sentiment: Insider selling by a director and the CTO may have added some caution, but the CTO sale was reportedly tied to a pre-arranged plan and tax withholding on vested equity awards.
• Neutral Sentiment: Some coverage still flags customer concentration risk, although management is working to diversify into more NeoCloud and broader customer relationships. Credo's Diversification Push: Can It Cut Customer Concentration Risk?

Credo Technology Group Stock Down 5.3%

The stock has a market capitalization of $46.26 billion, a PE ratio of 101.13, a PEG ratio of 1.25 and a beta of 3.22. The business's 50-day moving average is $181.36 and its two-hundred day moving average is $150.09.

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, beating analysts' consensus estimates of $1.02 by $0.14. The firm had revenue of $437.00 million during the quarter, compared to analysts' expectations of $431.80 million. Credo Technology Group had a return on equity of 36.99% and a net margin of 35.37%.The business's revenue was up 157.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.20 EPS. As a group, analysts anticipate that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current year.

Institutional Investors Weigh In On Credo Technology Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. NewEdge Advisors LLC lifted its stake in Credo Technology Group by 24.1% in the first quarter. NewEdge Advisors LLC now owns 5,883 shares of the company's stock valued at $552,000 after buying an additional 1,141 shares during the last quarter. Glenmede Trust Co. NA lifted its stake in Credo Technology Group by 2.0% in the first quarter. Glenmede Trust Co. NA now owns 5,706 shares of the company's stock valued at $536,000 after buying an additional 114 shares during the last quarter. Segall Bryant & Hamill LLC lifted its stake in Credo Technology Group by 12.7% in the first quarter. Segall Bryant & Hamill LLC now owns 111,621 shares of the company's stock valued at $10,478,000 after buying an additional 12,616 shares during the last quarter. Verus Capital Partners LLC purchased a new stake in Credo Technology Group in the first quarter valued at approximately $506,000. Finally, Western Wealth Management LLC purchased a new stake in Credo Technology Group in the first quarter valued at approximately $38,000. Hedge funds and other institutional investors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.