Stock Traders Buy High Volume of Put Options on Credo Technology Group (NASDAQ:CRDO)

Key Points

• Credo Technology Group saw a significant increase in put options trading, with 16,549 options bought, representing a 26% rise over the average volume.
• Analysts have set aggressive price targets for the stock, with Barclays raising it to $165 and Roth Capital to $160, both maintaining positive ratings.
• Insider activity is notable, with company executives selling substantial amounts of stock, indicating possible shifts in confidence regarding future performance.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) was the recipient of some unusual options trading activity on Thursday. Traders acquired 16,549 put options on the stock. This represents an increase of approximately 26% compared to the typical volume of 13,090 put options.

Insider Buying and Selling at Credo Technology Group

In other Credo Technology Group news, CEO William Joseph Brennan sold 150,000 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $106.87, for a total value of $16,030,500.00. Following the completion of the transaction, the chief executive officer owned 2,061,978 shares of the company's stock, valued at $220,363,588.86. This trade represents a 6.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Lip Bu Tan sold 171,473 shares of Credo Technology Group stock in a transaction on Monday, June 16th. The stock was sold at an average price of $77.90, for a total transaction of $13,357,746.70. Following the sale, the director directly owned 613,725 shares of the company's stock, valued at approximately $47,809,177.50. This trade represents a 21.84% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,033,917 shares of company stock valued at $99,967,419 in the last 90 days. Company insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Several hedge funds have recently bought and sold shares of CRDO. Nisa Investment Advisors LLC grew its stake in shares of Credo Technology Group by 3.5% in the second quarter. Nisa Investment Advisors LLC now owns 3,684 shares of the company's stock valued at $341,000 after buying an additional 126 shares in the last quarter. Blue Trust Inc. raised its stake in Credo Technology Group by 3.9% during the second quarter. Blue Trust Inc. now owns 4,108 shares of the company's stock worth $380,000 after acquiring an additional 154 shares in the last quarter. Signaturefd LLC grew its holdings in shares of Credo Technology Group by 32.4% during the second quarter. Signaturefd LLC now owns 703 shares of the company's stock worth $65,000 after purchasing an additional 172 shares during the last quarter. Main Management ETF Advisors LLC grew its holdings in shares of Credo Technology Group by 1.7% during the second quarter. Main Management ETF Advisors LLC now owns 11,728 shares of the company's stock worth $1,086,000 after purchasing an additional 192 shares during the last quarter. Finally, Larson Financial Group LLC boosted its holdings in Credo Technology Group by 21.5% in the first quarter. Larson Financial Group LLC now owns 1,386 shares of the company's stock valued at $56,000 after acquiring an additional 245 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages have weighed in on CRDO. Mizuho upped their target price on shares of Credo Technology Group from $135.00 to $155.00 and gave the stock an "outperform" rating in a research report on Thursday, September 4th. Susquehanna raised their target price on shares of Credo Technology Group from $115.00 to $165.00 and gave the company a "positive" rating in a research note on Thursday, September 4th. Cowen reaffirmed a "buy" rating on shares of Credo Technology Group in a report on Thursday, September 4th. TD Cowen raised their price objective on shares of Credo Technology Group from $140.00 to $160.00 and gave the stock a "buy" rating in a report on Thursday, September 4th. Finally, Barclays increased their price objective on shares of Credo Technology Group from $85.00 to $165.00 and gave the stock an "overweight" rating in a research note on Thursday, September 4th. Two equities research analysts have rated the stock with a Strong Buy rating and twelve have assigned a Buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $126.27.

Credo Technology Group Stock Up 1.7%

CRDO stock traded up $2.67 during trading hours on Friday, hitting $161.99. The company's stock had a trading volume of 3,545,961 shares, compared to its average volume of 5,306,212. The stock has a 50 day moving average price of $115.91 and a two-hundred day moving average price of $77.11. The company has a market capitalization of $28.02 billion, a PE ratio of 241.78 and a beta of 2.59. Credo Technology Group has a 12 month low of $26.96 and a 12 month high of $168.42.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Wednesday, September 3rd. The company reported $0.34 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.36 by ($0.02). Credo Technology Group had a net margin of 20.85% and a return on equity of 19.02%. The business had revenue of $223.07 million during the quarter, compared to analyst estimates of $190.63 million. During the same quarter in the prior year, the company posted $0.04 EPS. The company's quarterly revenue was up 273.6% compared to the same quarter last year. Credo Technology Group has set its Q2 2026 guidance at EPS. Sell-side analysts expect that Credo Technology Group will post 0.13 earnings per share for the current year.

About Credo Technology Group

Credo Technology Group Holding Ltd provides various high-speed connectivity Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Taiwan, Mainland China, Hong Kong, and internationally. Its products include HiWire active electrical cables, optical digital signal processors, low-power line card PHY, serializer/deserializer (SerDes) chiplets, and SerDes IP, as well as integrated circuits, active electrical cables.