Credo Technology Group (NASDAQ:CRDO) Stock Falls 2.8% on Insider Selling

Key Points

• Credo Technology Group shares fell 2.8% to $212.48 after executives disclosed stock sales. COO Yat Lam and CTO Chi Cheng sold shares under pre-arranged Rule 10b5-1 plans, including sales to cover tax obligations tied to vested equity awards.
• Analysts maintain a generally positive outlook, with the stock holding a consensus “Moderate Buy” rating and an average price target of $262.67, although several firms recently reduced their targets.
• Credo reported strong operating momentum, including 114.7% year-over-year revenue growth to $479 million and quarterly EPS of $1.20, exceeding expectations; AI-driven demand and its optical connectivity business remain key growth drivers.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares dropped 2.8% during mid-day trading on Monday following insider selling activity. The company traded as low as $206.06 and last traded at $212.48. 7,635,522 shares were traded during trading, an increase of 1% from the average daily volume of 7,535,044 shares. The stock had previously closed at $218.64.

Specifically, COO Yat Lam sold 50,000 shares of Credo Technology Group stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $205.22, for a total value of $10,261,000.00. Following the completion of the sale, the chief operating officer owned 2,254,169 shares of the company's stock, valued at approximately $462,600,562.18. This trade represents a 2.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Chi Cheng sold 27,500 shares of the business's stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total transaction of $5,333,075.00. Following the sale, the chief technology officer owned 5,662,397 shares of the company's stock, valued at $1,098,108,650.21. This trade represents a 0.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Credo Technology Group news, COO Yat Lam sold 50,000 shares of the company's stock in a transaction on Friday, September 25th. The shares were sold at an average price of $206.30, for a total transaction of $10,315,000.00. Following the transaction, the chief operating officer owned 2,479,169 shares in the company, valued at approximately $511,452,564.70. This represents a 1.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Weiss Ratings raised shares of Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, September 18th. Mizuho decreased their price objective on Credo Technology Group from $290.00 to $245.00 and set an "outperform" rating for the company in a report on Monday, September 21st. Zacks Research downgraded Credo Technology Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 3rd. Bank of America dropped their target price on Credo Technology Group from $340.00 to $275.00 and set a "buy" rating on the stock in a report on Wednesday, September 2nd. Finally, Susquehanna lifted their target price on Credo Technology Group from $235.00 to $250.00 and gave the company a "positive" rating in a research report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $262.67.

Trending Headlines about Credo Technology Group

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

• Positive Sentiment: Credo has delivered seven consecutive quarters of triple-digit revenue growth, while its shift from copper-based connectivity to optical solutions could create a significant long-term opportunity as AI infrastructure demand expands. Credo: The Transformation From Copper To Optical Is A Major Opportunity Still Under-Appreciated
• Positive Sentiment: Stifel Nicolaus maintained a Buy rating and set a $310 price target, citing potential upside from Credo’s growth prospects despite lowering the target from $350. Credo Technology Group Given New $310 Price Target at Stifel Nicolaus
• Positive Sentiment: The company’s revenue more than doubled in its latest quarter, increasing 114.7% year over year, supported by AI-driven demand, an expanding optics portfolio and strong margins. A future optical-business milestone could lead analysts to materially raise their 2027 expectations. Credo Grew Revenue 114.70%. Why Can Nobody Price It?
• Neutral Sentiment: Analysts and commentators remain divided on whether Credo’s rapid growth justifies its elevated valuation. The company’s outlook is attractive, but execution risks and the stock’s volatility make further upside dependent on continued strong results. Credo Stock at a Premium Valuation: Opportunity or Stay Cautious?
• Negative Sentiment: Reported insider selling is weighing on sentiment because it may signal that company insiders view the current valuation as attractive for taking profits. Credo Technology Group Shares Down on Insider Selling

Credo Technology Group Stock Down 2.8%

The stock has a 50-day moving average of $207.21 and a 200 day moving average of $198.59. The company has a market capitalization of $39.94 billion, a PE ratio of 75.62, a P/E/G ratio of 0.87 and a beta of 3.25.

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 for the quarter, topping the consensus estimate 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 business had revenue of $479.00 million for the quarter, compared to analysts' expectations of $473.30 million. During the same quarter in the previous year, the firm earned $0.52 earnings per share. The business's revenue was up 114.7% on a year-over-year basis. Equities analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Orion Capital Management LLC purchased a new stake in Credo Technology Group during the second quarter worth about $27,000. Burkett Financial Services LLC purchased a new position in Credo Technology Group in the third quarter valued at about $33,000. Reflection Asset Management bought a new position in shares of Credo Technology Group during the 4th quarter valued at approximately $25,000. AlphaCentric Advisors LLC purchased a new stake in shares of Credo Technology Group during the 1st quarter worth approximately $33,000. Finally, MCF Advisors LLC increased its stake in shares of Credo Technology Group by 309.9% during the 4th quarter. MCF Advisors LLC now owns 373 shares of the company's stock worth $54,000 after purchasing an additional 282 shares during the last quarter. 80.46% of the stock is owned by hedge funds and other institutional investors.

About Credo Technology Group

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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