Credo Technology Group (NASDAQ:CRDO) CTO Chi Fung Cheng Sells 3,790 Shares of Stock

Key Points

• Credo Technology CTO Chi Fung Cheng sold 3,790 shares at an average price of $170, generating $644,300 and reducing his position by 2.7% to 136,568 shares.
• Credo’s shares traded near $167.92, well below the 50-day moving average of $226.71, despite a recent earnings beat. Quarterly revenue rose 114.7% year over year to $479 million, while EPS of $1.20 exceeded estimates by $0.03.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and average price target of $267.39; however, elevated valuation, margin pressure and execution risks remain concerns.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) CTO Chi Cheng sold 3,790 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $170.00, for a total transaction of $644,300.00. Following the completion of the sale, the chief technology officer owned 136,568 shares of the company's stock, valued at approximately $23,216,560. The trade was a 2.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Chi Fung Cheng also recently made the following trade(s):

• On Friday, July 31st, Chi Cheng sold 27,473 shares of Credo Technology Group stock. The shares were sold at an average price of $209.53, for a total transaction of $5,756,417.69.
• On Monday, July 27th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $205.54, for a total transaction of $5,652,350.00.
• On Tuesday, July 21st, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $222.34, for a total transaction of $6,114,350.00.
• On Wednesday, July 8th, Chi Cheng sold 3,790 shares of Credo Technology Group stock. The shares were sold at an average price of $258.71, for a total value of $980,510.90.
• On Tuesday, July 7th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $243.06, for a total value of $6,684,150.00.
• On Tuesday, June 30th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $269.84, for a total value of $7,420,600.00.
• On Tuesday, June 23rd, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $270.94, for a total value of $7,450,850.00.
• On Tuesday, June 16th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $246.69, for a total value of $6,783,975.00.
• On Thursday, June 11th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $259.53, for a total value of $7,137,075.00.

Credo Technology Group Stock Performance

Shares of NASDAQ CRDO traded up $0.17 during trading hours on Wednesday, hitting $167.92. The stock had a trading volume of 6,937,158 shares, compared to its average volume of 7,417,904. The firm's 50-day moving average price is $226.71 and its two-hundred day moving average price is $190.08. Credo Technology Group Holding Ltd. has a 52 week low of $86.49 and a 52 week high of $308.67. The company has a market capitalization of $31.56 billion, a P/E ratio of 59.76, a P/E/G ratio of 0.68 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, beating the consensus estimate of $1.17 by $0.03. The firm had revenue of $479.00 million for 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 revenue for the quarter was up 114.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.52 earnings per share. As a group, analysts expect that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. City Center Advisors LLC grew its position in shares of Credo Technology Group by 2.1% in the second quarter. City Center Advisors LLC now owns 2,595 shares of the company's stock valued at $706,000 after purchasing an additional 53 shares during the last quarter. Versant Capital Management Inc increased its stake in shares of Credo Technology Group by 8.0% in the second quarter. Versant Capital Management Inc now owns 755 shares of the company's stock worth $205,000 after purchasing an additional 56 shares during the period. Northwestern Mutual Wealth Management Co. lifted its position in shares of Credo Technology Group by 16.2% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 552 shares of the company's stock worth $80,000 after purchasing an additional 77 shares during the last quarter. QRG Capital Management Inc. lifted its position in shares of Credo Technology Group by 1.7% during the 1st quarter. QRG Capital Management Inc. now owns 5,402 shares of the company's stock worth $507,000 after purchasing an additional 91 shares during the last quarter. Finally, Bank of Nova Scotia lifted its position in shares of Credo Technology Group by 1.6% during the 1st quarter. Bank of Nova Scotia now owns 6,026 shares of the company's stock worth $566,000 after purchasing an additional 92 shares during the last quarter. Institutional investors own 80.46% of the company's stock.

Wall Street Analyst Weigh In

CRDO has been the subject of several analyst reports. Weiss Ratings lowered shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday. Jefferies Financial Group raised their target price on Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Barclays boosted their price target on Credo Technology Group from $260.00 to $300.00 and gave the stock an "overweight" rating in a research report on Monday, July 20th. Susquehanna upped their price target on Credo Technology Group from $235.00 to $250.00 and gave the stock a "positive" rating in a research note on Tuesday, July 21st. Finally, JPMorgan Chase & Co. lowered their price objective on Credo Technology Group from $335.00 to $310.00 and set an "overweight" rating on the stock in a report on Wednesday, September 2nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, Credo Technology Group currently has an average rating of "Moderate Buy" and an average target price of $267.39.

Key Credo Technology Group News

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

• Positive Sentiment: Analysts remain bullish after the selloff. Coverage argues that Credo’s recent decline may be disconnected from its fundamentals, with some analysts maintaining price targets above $300 and describing the shares as a potential buying opportunity. The Credo Selloff Could Be a Huge Buying Opportunity: Analysts Still See $300+
• Positive Sentiment: AI data-center demand continues to support growth. Credo is benefiting from strong demand for active electrical cables, record Retimer sales and expanding optical products. Management’s outlook calls for approximately 85% year-over-year revenue growth in fiscal 2027, including more than $600 million in annual optical revenue. Credo Technology: A Compelling Buy For Forward-Looking Investors
• Positive Sentiment: Recent results exceeded expectations. Revenue reached $479 million, up 114.7% year over year, while earnings of $1.20 per share topped the $1.17 consensus estimate. The quarter represented another consecutive earnings beat and continued triple-digit growth. Credo Q1 2027 Earnings Call Transcript
• Positive Sentiment: Product expansion could increase Credo’s long-term market opportunity. The DustPhotonics acquisition, ZeroFlap Optics, silicon photonics, optical DSPs and PILOT telemetry broaden the company’s data-center connectivity offerings and could support future margin expansion. Credo Market Is Mispricing a $1 Trillion AI Infrastructure Catalyst
• Neutral Sentiment: Investors are weighing exceptional growth against execution risk. Analysts generally favor buying the pullback rather than chasing the stock, citing acquisition integration, valuation and the need for sustained AI-related demand. Credo: Buy the AI Connectivity Pullback, But Do Not Chase Blindly
• Negative Sentiment: Margin and cash-flow concerns are weighing on sentiment. The market appears to be interpreting GAAP margin compression and working-capital expansion as potential signs of near-term pressure, even though management and bullish analysts expect longer-term non-GAAP margin improvement. Credo’s high earnings multiple also leaves less room for disappointing guidance.

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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