Credo Technology Group (NASDAQ:CRDO) CTO Sells 27,500 Shares of Company Stock

Key Points

• Credo CTO Chi Cheng sold 27,500 shares at an average price of $192.99, generating $5.31 million. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, and Cheng still owned about 5.61 million shares afterward.
• CRDO shares fell $19.08 to $179.23, while the company continues to show strong operating growth: quarterly revenue rose 114.7% year over year to $479 million and EPS exceeded analyst estimates.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $262.67, but investors face risks from the stock’s high valuation, volatility and dependence on two major customers.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) CTO Chi Cheng sold 27,500 shares of the business's stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $192.99, for a total transaction of $5,307,225.00. Following the transaction, the chief technology officer directly owned 5,607,397 shares of the company's stock, valued at approximately $1,082,171,547.03. This represents a 0.49% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Monday, October 12th, Chi Cheng sold 3,790 shares of Credo Technology Group stock. The shares were sold at an average price of $201.84, for a total transaction of $764,973.60.
• On Tuesday, October 6th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $221.48, for a total transaction of $6,090,700.00.
• On Tuesday, September 29th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $193.93, for a total transaction of $5,333,075.00.
• On Wednesday, September 23rd, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The stock was sold at an average price of $193.12, for a total transaction of $5,310,800.00.
• On Thursday, September 17th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were sold at an average price of $166.38, for a total value of $4,575,450.00.
• On Friday, September 4th, Chi Cheng sold 3,790 shares of Credo Technology Group stock. The stock was sold at an average price of $170.00, for a total value of $644,300.00.
• On Friday, July 31st, Chi Cheng sold 27,473 shares of Credo Technology Group stock. The stock was sold at an average price of $209.53, for a total value of $5,756,417.69.
• On Monday, July 27th, Chi Cheng sold 27,500 shares of Credo Technology Group stock. The shares were 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 shares were sold at an average price of $222.34, for a total transaction of $6,114,350.00.

Credo Technology Group Stock Performance

CRDO traded down $19.08 during trading on Wednesday, reaching $179.23. The stock had a trading volume of 12,161,207 shares, compared to its average volume of 7,583,224. The stock has a market cap of $33.69 billion, a PE ratio of 63.78, a PEG ratio of 0.80 and a beta of 3.25. Credo Technology Group Holding Ltd. has a one year low of $86.49 and a one year high of $308.67. The business has a 50-day moving average of $207.99 and a 200-day moving average of $203.90.

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

Credo Technology Group News Roundup

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

• Positive Sentiment: Credo’s AI connectivity demand remains robust. Recent quarterly revenue increased 114.7% year over year to $479 million, while EPS exceeded analyst expectations. Analysts cited in recent coverage expect fiscal 2027 revenue to rise more than 85%, supported by record sales and expansion of the optical business. Does Credo's Revenue Outlook Signal Further Upside?
• Positive Sentiment: The company unveiled its 1.6T ZeroFlap Active Light Cable, designed for AI data centers with lower power consumption, longer reach and improved reliability. Commercial shipments are expected around 2027, creating a potential new growth driver as data-center bandwidth requirements increase. Credo Expands AI Connectivity Portfolio
• Positive Sentiment: Credo is leading an Open Compute Project workstream to standardize Short-Reach Micro-Emitter Optics, potentially positioning its technology for broader hyperscaler adoption. Its collaboration with AMD on memory connectivity also expands the company’s opportunity beyond active electrical cables. Credo Launches SRMO Standardization
• Neutral Sentiment: Some analysts view CRDO as undervalued relative to its growth and peers, with a consensus “Moderate Buy” rating. However, the company still trades at a high earnings multiple and relies heavily on two customers. Investors must also wait for newer optical products to ship at scale before they can materially affect results.
• Negative Sentiment: The recent decline appears largely linked to sector-wide weakness and profit-taking in AI infrastructure stocks rather than a newly reported operational problem. High volatility and valuation sensitivity remain risks if customer capital spending slows. Does the Drop in Credo Stock Change Anything?
• Negative Sentiment: CFO Daniel Fleming sold 7,580 shares under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only 1.52% and left him with a substantial stake, limiting its significance, but it may add modest pressure to sentiment.

Hedge Funds Weigh In On Credo Technology Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Reflection Asset Management bought a new stake in shares of Credo Technology Group during the fourth quarter valued at approximately $25,000. Orion Capital Management LLC bought a new position in Credo Technology Group in the 2nd quarter valued at approximately $27,000. AlphaCentric Advisors LLC bought a new position in Credo Technology Group in the 1st quarter valued at approximately $33,000. Burkett Financial Services LLC bought a new position in Credo Technology Group in the 3rd quarter valued at approximately $33,000. Finally, Western Wealth Management LLC purchased a new stake in Credo Technology Group during the 1st quarter valued at $38,000. Hedge funds and other institutional investors own 80.46% of the company's stock.

Analyst Ratings Changes

Several analysts have issued reports on CRDO shares. Mizuho cut their target price on Credo Technology Group from $290.00 to $245.00 and set an "outperform" rating for the company in a research note on Monday, September 21st. Rosenblatt Securities lifted their price target on shares of Credo Technology Group from $215.00 to $235.00 and gave the stock a "neutral" rating in a research note on Wednesday, September 2nd. 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. Bank of America dropped their target price on Credo Technology Group from $340.00 to $275.00 and set a "buy" rating for the company in a report on Wednesday, September 2nd. Finally, JPMorgan Chase & Co. cut their price target on shares of 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 equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, Credo Technology Group currently has a consensus rating of "Moderate Buy" and an average price target of $262.67.

Credo Technology Group Company Profile

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for data infrastructure. Its technologies are designed to improve the performance, power efficiency and reliability of connections used in cloud computing, artificial intelligence, high-performance computing, telecommunications and enterprise networks.

The company's product portfolio includes serializer/deserializer (SerDes) intellectual property, integrated circuits, active electrical cables and optical connectivity products.

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