Credo Technology Group (NASDAQ:CRDO) Trading Down 7.8% - Time to Sell?

Key Points

• Shares fell 7.8% intraday to about $155.24 on Thursday after a sharp rally, even as trading volume was down ~77% versus the average; the recent run was driven largely by the announced DustPhotonics acquisition (~$750M), analyst endorsements and heavy call‑option buying.
• Earnings and growth are strong: Q results beat expectations (EPS $1.07 vs. $0.78; revenue $407M, up 201.5% YoY), but the stock trades at a high valuation (market cap ~$29.35B, P/E ~88.7) with an average analyst price target of about $207.81.
• Near‑term risks include significant insider selling (386,419 shares worth ~$44.7M in the past 90 days) and mixed analyst notes, which could prompt profit‑taking or pullbacks despite institutional buying and overall positive sentiment.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) were down 7.8% during mid-day trading on Thursday . The company traded as low as $155.41 and last traded at $155.2360. Approximately 1,617,639 shares were traded during trading, a decline of 77% from the average daily volume of 7,173,266 shares. The stock had previously closed at $168.35.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Announced acquisition of DustPhotonics (≈$750M) to add silicon‑photonic PIC tech for optical transceivers and broaden Credo’s addressable market in AI and data‑center connectivity — the deal is the main catalyst behind recent rallies. Credo DustPhotonics acquisition
• Positive Sentiment: Analyst support and coverage: Needham reaffirmed a Buy with a $220 target and Jefferies initiated coverage (both helped momentum); several firms raised targets recently — these endorsements boosted investor confidence. Brokerage notes
• Positive Sentiment: Heavy call‑option buying and elevated options flow were reported, indicating speculative bullish positioning that amplified the recent up move. Options activity
• Neutral Sentiment: Credo published its FY2025 Greenhouse Gas report, starting an ESG disclosure track that may matter to long‑term institutional holders but is unlikely to drive short‑term price moves. GHG report
• Neutral Sentiment: Management hosted an M&A call/transcript to outline DustPhotonics integration and synergies — investors will parse timing, costs and margin impact; details could swing sentiment either way. M&A call transcript
• Negative Sentiment: Insider selling: CTO Chi Fung Cheng disclosed multiple Rule 10b5‑1 sales (most recently 27,500 shares). While routine and small versus his remaining stake, such sales contribute to near‑term selling pressure and may prompt profit‑taking. Insider sale disclosure
• Negative Sentiment: Mixed/neutral research actions (e.g., Zacks trimmed ratings, Rosenblatt set a neutral rating despite a higher PT) add ambiguity — after a sharp run, any cautious notes can trigger pullbacks. Zacks note

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on CRDO shares. Zacks Research cut shares of Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research report on Monday. Susquehanna cut their price objective on shares of Credo Technology Group from $230.00 to $170.00 and set a "positive" rating on the stock in a research report on Tuesday, March 3rd. Roth Mkm cut their price objective on shares of Credo Technology Group from $250.00 to $200.00 and set a "buy" rating on the stock in a research report on Tuesday, February 10th. Rosenblatt Securities increased their price objective on shares of Credo Technology Group from $125.00 to $175.00 and gave the stock a "neutral" rating in a research report on Wednesday. Finally, Needham & Company LLC reissued a "buy" rating and set a $220.00 price objective on shares of Credo Technology Group in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $207.81.

Credo Technology Group Stock Performance

The company has a market cap of $29.35 billion, a price-to-earnings ratio of 88.69 and a beta of 2.72. The stock's fifty day moving average is $113.99 and its two-hundred day moving average is $137.04.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its earnings results on Monday, March 2nd. The company reported $1.07 earnings per share for the quarter, topping analysts' consensus estimates 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 company had revenue of $407.01 million for the quarter, compared to analyst estimates of $385.94 million. During the same quarter in the prior year, the business posted $0.25 EPS. The firm's revenue was up 201.5% compared to the same quarter last year. On average, equities research analysts expect that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current year.

Insider Activity

In other Credo Technology Group news, COO Yat Tung Lam sold 3,180 shares of the stock in a transaction dated Sunday, April 5th. The shares were sold at an average price of $101.45, for a total value of $322,611.00. Following the completion of the sale, the chief operating officer owned 2,610,329 shares in the company, valued at approximately $264,817,877.05. This trade represents a 0.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO William Joseph Brennan sold 6,149 shares of the stock in a transaction dated Sunday, April 5th. The shares were sold at an average price of $101.45, for a total transaction of $623,816.05. Following the completion of the sale, the chief executive officer owned 222,311 shares of the company's stock, valued at approximately $22,553,450.95. This trade represents a 2.69% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 386,419 shares of company stock worth $44,731,310. Corporate insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in CRDO. NewEdge Advisors LLC increased its stake in Credo Technology Group by 128.4% in the 1st quarter. NewEdge Advisors LLC now owns 7,066 shares of the company's stock valued at $284,000 after buying an additional 3,972 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in Credo Technology Group by 63.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company's stock valued at $61,235,000 after buying an additional 589,151 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Credo Technology Group by 2.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company's stock worth $12,480,000 after purchasing an additional 7,107 shares during the last quarter. CW Advisors LLC purchased a new stake in shares of Credo Technology Group during the 2nd quarter worth approximately $288,000. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Credo Technology Group by 198.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock worth $46,000 after purchasing an additional 333 shares during the last quarter. Hedge funds and other institutional investors own 80.46% of the company's stock.

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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