FirstWave Capital Management LLC Decreases Stock Holdings in Credo Technology Group Holding Ltd. $CRDO

Key Points

• FirstWave Capital Management reduced its Credo Technology stake by 16.1% in the second quarter, selling 7,843 shares and retaining 40,819 shares valued at $11.1 million. Institutional investors still own 80.46% of the company.
• Credo reported quarterly revenue of $479 million, up 114.7% year over year, and EPS of $1.20, beating estimates of $1.17. Management expects fiscal-year revenue growth above 85%, though investors remain focused on margins and the expansion of its optical business.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $267.39, but concerns include valuation, customer concentration, insider selling, rising costs and competition.

FirstWave Capital Management LLC cut its holdings in Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Free Report) by 16.1% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 40,819 shares of the company's stock after selling 7,843 shares during the period. Credo Technology Group accounts for 4.9% of FirstWave Capital Management LLC's holdings, making the stock its 6th biggest holding. FirstWave Capital Management LLC's holdings in Credo Technology Group were worth $11,101,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in CRDO. M&T Bank Corp increased its holdings in shares of Credo Technology Group by 428.8% in the fourth quarter. M&T Bank Corp now owns 13,427 shares of the company's stock worth $1,932,000 after purchasing an additional 10,888 shares during the last quarter. California State Teachers Retirement System increased its position in Credo Technology Group by 2.2% during the first quarter. California State Teachers Retirement System now owns 240,886 shares of the company's stock valued at $22,612,000 after acquiring an additional 5,113 shares during the last quarter. TimesSquare Capital Management LLC raised its position in Credo Technology Group by 5.5% in the 4th quarter. TimesSquare Capital Management LLC now owns 264,181 shares of the company's stock worth $38,013,000 after purchasing an additional 13,881 shares during the period. Corsair Capital Management L.P. purchased a new stake in shares of Credo Technology Group in the first quarter worth approximately $469,000. Finally, Sumitomo Mitsui DS Asset Management Company Ltd increased its stake in Credo Technology Group by 154.5% in the fourth quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 32,468 shares of the company's stock worth $4,672,000 after purchasing an additional 19,708 shares during the period. 80.46% of the stock is currently owned by institutional investors.

Credo Technology Group Trading Up 3.9%

Shares of NASDAQ CRDO opened at $170.57 on Friday. Credo Technology Group Holding Ltd. has a 12-month low of $86.49 and a 12-month high of $308.67. The stock has a market cap of $32.06 billion, a PE ratio of 60.70, a P/E/G ratio of 0.67 and a beta of 3.22. The company has a 50-day moving average of $230.31 and a 200 day moving average of $189.00.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%.The firm had revenue of $479.00 million for the quarter, compared to the consensus estimate of $473.30 million. During the same quarter last year, the business posted $0.52 earnings per share. The firm's revenue was up 114.7% compared to the same quarter last year. On average, sell-side analysts forecast that Credo Technology Group Holding Ltd. will post 4.93 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on CRDO. Jefferies Financial Group lifted their target price on Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Stifel Nicolaus lifted their price objective on shares of Credo Technology Group from $250.00 to $350.00 and gave the stock a "buy" rating in a research report on Monday, June 22nd. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Credo Technology Group in a research report on Friday, August 21st. 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 research report on Tuesday, August 18th. Finally, Wall Street Zen lowered Credo Technology Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. One research 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's stock. Based on data from MarketBeat.com, Credo Technology Group has an average rating of "Moderate Buy" and a consensus price target of $267.39.

Credo Technology Group News Roundup

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

• Positive Sentiment: Credo reported revenue of $479 million, up 115% year over year, while adjusted EPS of $1.20 exceeded the $1.17 consensus estimate. Management expects fiscal-year revenue growth of more than 85%, with optical revenue surpassing $600 million as a second growth engine develops. Why I Doubled Down On Credo
• Positive Sentiment: Bullish analysts argue that the market’s margin fears are overstated and that the optical business should scale meaningfully in the second half of fiscal 2027. DustPhotonics also expands Credo’s opportunities in silicon photonics, 800G, 1.6T and near-package optics. Credo And The Illusion Of Its Q1 Problems
• Positive Sentiment: Stifel Nicolaus reiterated a Buy view, while Rosenblatt raised its price target to $235, supporting the case that the recent valuation reset may have been excessive. Stifel Buy Rating
• Neutral Sentiment: Analysts remain divided. Bank of America lowered its price target to $275, while other analysts maintain bullish ratings, reflecting uncertainty over how quickly optical products will ramp and whether margins can stabilize. Bank of America Price Target
• Negative Sentiment: Bears point to shrinking gross margins, rising operating costs, approximately $88 million in quarterly stock-based compensation, insider selling and customer concentration exceeding 60% of revenue. They also question the durability of the optical outlook, competition from Marvell and the risk of slower hyperscaler capital spending after fiscal 2028. Credo: This Is Not A Buying Opportunity

Insider Activity

In other news, CFO Daniel W. Fleming sold 7,580 shares of the company's stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $245.88, for a total value of $1,863,770.40. Following the transaction, the chief financial officer owned 504,708 shares of the company's stock, valued at $124,097,603.04. This represents a 1.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,473 shares of the stock in a transaction on Friday, July 31st. The stock was sold at an average price of $209.53, for a total value of $5,756,417.69. Following the transaction, the chief technology officer owned 5,772,397 shares of the company's stock, valued at approximately $1,209,490,343.41. This represents a 0.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 377,884 shares of company stock valued at $88,559,765. 9.06% of the stock is currently owned by company insiders.

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.

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