Engineers Gate Manager LP Lowers Stake in Credo Technology Group Holding Ltd. $CRDO

Key Points

• Engineers Gate Manager LP cut its Credo Technology stake by 81.3% in the second quarter, selling 151,716 shares and retaining 34,857 shares valued at approximately $9.5 million.
• Institutional investors still hold approximately 80.46% of CRDO, although insiders have also been selling; company executives sold 313,074 shares worth $71.8 million over the past 90 days.
• Credo reported strong quarterly results, with revenue rising 114.7% year over year to $479 million and EPS of $1.20 exceeding estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $267.39, while valuation and margin pressure remain risks.

Engineers Gate Manager LP cut its holdings in shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Free Report) by 81.3% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 34,857 shares of the company's stock after selling 151,716 shares during the period. Engineers Gate Manager LP's holdings in Credo Technology Group were worth $9,479,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of CRDO. Integrated Wealth Concepts LLC grew its holdings in Credo Technology Group by 68.5% in the second quarter. Integrated Wealth Concepts LLC now owns 15,962 shares of the company's stock valued at $4,341,000 after purchasing an additional 6,489 shares during the period. NewEdge Advisors LLC raised its stake in shares of Credo Technology Group by 56.0% during the 2nd quarter. NewEdge Advisors LLC now owns 9,176 shares of the company's stock worth $2,495,000 after buying an additional 3,293 shares during the period. GFG Capital LLC acquired a new position in shares of Credo Technology Group during the 2nd quarter worth approximately $214,000. Baird Financial Group Inc. purchased a new position in shares of Credo Technology Group during the 2nd quarter valued at approximately $781,000. Finally, Sterling Investment Advisors Ltd. purchased a new position in shares of Credo Technology Group during the 2nd quarter valued at approximately $381,000. Hedge funds and other institutional investors own 80.46% of the company's stock.

Insider Activity

In related news, CFO Daniel W. Fleming sold 7,580 shares of Credo Technology Group stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $245.88, for a total transaction of $1,863,770.40. Following the transaction, the chief financial officer owned 504,708 shares in the company, valued at approximately $124,097,603.04. This trade represents a 1.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 50,000 shares of the business's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $213.33, for a total value of $10,666,500.00. Following the transaction, the chief operating officer directly owned 300,000 shares in the company, valued at $63,999,000. This trade represents a 14.29% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 313,074 shares of company stock worth $71,827,816 over the last ninety days. Corporate insiders own 9.06% of the company's stock.

Credo Technology Group Trading Down 4.5%

CRDO opened at $160.31 on Friday. Credo Technology Group Holding Ltd. has a twelve month low of $86.49 and a twelve month high of $308.67. The firm has a market capitalization of $30.13 billion, a PE ratio of 57.05, a PEG ratio of 0.67 and a beta of 3.22. The firm's 50-day moving average price is $223.25 and its 200 day moving average price is $190.60.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, beating analysts' consensus estimates of $1.17 by $0.03. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The company had revenue of $479.00 million during the quarter, compared to the consensus estimate of $473.30 million. During the same quarter in the prior year, the firm earned $0.52 EPS. Credo Technology Group's quarterly revenue was up 114.7% on a year-over-year basis. As a group, analysts predict that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Key Credo Technology Group News

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

• Positive Sentiment: AI infrastructure demand remains a major growth driver. Analysts highlight strong demand for active electrical cables, Retimers and optical products, with management expecting approximately 85% fiscal 2027 revenue growth and more than $600 million in annual optical revenue. Credo Technology: A Compelling Buy For Forward-Looking Investors
• Positive Sentiment: Recent financial results continued to exceed expectations. Credo reported $479 million in quarterly revenue, up 114.7% year over year, while earnings of $1.20 per share topped the $1.17 consensus estimate. The results marked another consecutive earnings beat and a continuation of triple-digit growth. Credo Q1 2027 Earnings Call Transcript
• Positive Sentiment: Several analysts view the pullback as a buying opportunity. Bullish coverage points to Credo’s expanding connectivity portfolio, including optical DSPs, ZeroFlap Optics and silicon photonics, while some published price targets remain above $300. The Credo Selloff Could Be a Huge Buying Opportunity
• Neutral Sentiment: Management’s investor presentation provided additional visibility but no specific new catalyst was reported. Credo also presented at the Goldman Sachs Communacopia + Technology Conference. Short-interest data showed no meaningful change, with reported short interest remaining at zero. Credo Goldman Sachs Conference Transcript
• Negative Sentiment: Gross-margin compression is the key near-term concern. Investors are questioning whether Credo can scale its AI connectivity business without additional GAAP margin pressure. Working-capital expansion and the stock’s elevated valuation increase sensitivity to any disappointing outlook. Credo Reports 115% Revenue Growth but Lower GAAP Gross Margin
• Negative Sentiment: CTO Chi Fung Cheng sold 3,790 shares for approximately $644,300. The sale reduced his direct holdings by about 2.7%, although he retained 136,568 shares. The transaction may add pressure to sentiment, particularly following earlier sales. Chi Fung Cheng Sells Credo Shares

Analysts Set New Price Targets

CRDO has been the topic of a number of research analyst reports. Mizuho lifted their price target on shares of Credo Technology Group from $260.00 to $290.00 and gave the company an "outperform" rating in a research note on Tuesday, June 2nd. The Goldman Sachs Group restated a "buy" rating and set a $250.00 price objective on shares of Credo Technology Group in a research report on Tuesday, June 2nd. TD Cowen increased their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the company a "buy" rating in a report on Tuesday, August 18th. Wall Street Zen lowered shares of Credo Technology Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Evercore set a $292.00 target price on shares of Credo Technology Group in a research note on Wednesday, September 2nd. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Credo Technology Group has a consensus rating of "Moderate Buy" and a consensus target price of $267.39.

Credo Technology Group Company Profile

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for the data infrastructure market. Its products are designed to help move data efficiently within and between networking, storage and computing systems, with applications in artificial intelligence, cloud computing, telecommunications and enterprise data centers.

The company's portfolio includes serializer/deserializer (SerDes) integrated circuits, retimers, optical digital signal processors and active electrical cables.

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