National Pension Service Cuts Stake in Credo Technology Group Holding Ltd. $CRDO

Key Points

• National Pension Service reduced its Credo Technology stake by 2.5%, selling 10,939 shares and retaining 427,471 shares worth approximately $116.3 million. Institutional investors collectively own 80.46% of the company.
• Credo reported strong operating momentum, with quarterly revenue rising 114.7% year over year to $479 million and EPS of $1.20, exceeding analyst estimates. AI infrastructure demand remains a key growth driver, and analysts maintain a “Moderate Buy” consensus with an average price target of $267.39.
• Valuation and margin pressure remain important risks. The stock has pulled back sharply from its 12-month high, while gross-margin compression, elevated valuation and recent insider selling could weigh on investor sentiment.

National Pension Service cut its stake in shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Free Report) by 2.5% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 427,471 shares of the company's stock after selling 10,939 shares during the quarter. National Pension Service owned about 0.23% of Credo Technology Group worth $116,251,000 as of its most recent SEC filing.

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

Credo Technology Group News Summary

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

Insider Buying and Selling

In related news, COO Yat Lam sold 50,000 shares of the company's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $213.33, for a total transaction of $10,666,500.00. Following the completion of the sale, the chief operating officer owned 300,000 shares in the company, valued at approximately $63,999,000. This represents a 14.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 3,790 shares of the stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $170.00, for a total value of $644,300.00. Following the completion of the transaction, the chief technology officer directly owned 136,568 shares in the company, valued at approximately $23,216,560. This represents a 2.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 313,074 shares of company stock valued at $71,827,816 over the last 90 days. Company insiders own 9.06% of the company's stock.

Credo Technology Group Trading Down 4.5%

Shares of CRDO stock opened at $160.31 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 capitalization of $30.13 billion, a P/E ratio of 57.05, a P/E/G ratio of 0.67 and a beta of 3.22. The firm's 50 day moving average is $223.25 and its 200 day moving average is $190.60.

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

Analysts Set New Price Targets

CRDO has been the subject of a number of recent analyst reports. Barclays boosted their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a report on Monday, July 20th. The Goldman Sachs Group reissued a "buy" rating and issued a $250.00 target price on shares of Credo Technology Group in a report on Tuesday, June 2nd. Stifel Nicolaus boosted their price target on Credo Technology Group from $250.00 to $350.00 and gave the stock a "buy" rating in a research note on Monday, June 22nd. Roth Capital upped their price target on Credo Technology Group from $200.00 to $300.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Finally, Weiss Ratings downgraded Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average 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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