Credo Technology Group (NASDAQ:CRDO) Stock Price Down 3.7% After Insider Selling

Key Points

• CRDO shares fell 3.7% to $211.86 after insider selling, with trading volume 25% above its average. Multiple executives sold shares, primarily through pre-arranged Rule 10b5-1 plans to cover tax obligations.
• Analysts remain broadly positive, giving Credo a consensus “Moderate Buy” rating and an average price target of $262.67, though some firms recently lowered targets or downgraded the stock.
• Credo reported strong operating momentum, with quarterly revenue up 114.7% year over year to $479 million and EPS of $1.20 beating estimates. However, its high valuation and beta of 3.25 leave the stock vulnerable to profit-taking and shifts in AI-growth expectations.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price fell 3.7% during mid-day trading on Thursday following insider selling activity. The company traded as low as $206.66 and last traded at $211.86. 9,445,276 shares changed hands during trading, an increase of 25% from the average daily volume of 7,543,454 shares. The stock had previously closed at $220.01.

Specifically, CTO Chi Cheng sold 27,500 shares of the firm's stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $221.48, for a total value of $6,090,700.00. Following the transaction, the chief technology officer owned 5,634,897 shares in the company, valued at approximately $1,248,016,987.56. This trade represents a 0.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 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, insider James Laufman sold 5,000 shares of Credo Technology Group stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $205.00, for a total transaction of $1,025,000.00. Following the completion of the transaction, the insider directly owned 164,223 shares in the company, valued at approximately $33,665,715. The trade was a 2.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In related news, COO Yat Lam sold 50,000 shares of the company's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $205.22, for a total transaction of $10,261,000.00. Following the completion of the sale, the chief operating officer directly owned 2,254,169 shares in the company, valued at $462,600,562.18. This represents a 2.17% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 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.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on CRDO shares. Rosenblatt Securities raised their price target on shares of Credo Technology Group from $215.00 to $235.00 and gave the stock a "neutral" rating in a report on Wednesday, September 2nd. Evercore set a $292.00 target price on shares of Credo Technology Group in a report on Wednesday, September 2nd. Wall Street Zen cut Credo Technology Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Weiss Ratings downgraded Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday. Finally, Stifel Nicolaus decreased their target price on Credo Technology Group from $350.00 to $310.00 and set a "buy" rating for the company in a report on Monday. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Credo Technology Group presently has an average rating of "Moderate Buy" and a consensus target price of $262.67.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Credo’s retimer business is gaining momentum as hyperscalers expand AI data-center infrastructure. Record revenue and new product wins suggest retimers could become an increasingly important growth engine for the company. CRDO's Retimer Business Gains Steam: Can the Momentum Continue?
• Positive Sentiment: Credo joined the Open Co-Packaged Interface Multi-Source Agreement, placing it in a consortium focused on interoperable near-package and co-packaged optical technologies. Participation could create future opportunities in AI networking and strengthen Credo’s position as a connectivity technology supplier. Credo Technology Joins the Co-Packaged Optics Race
• Positive Sentiment: Recent results showed strong operating momentum: revenue rose 114.7% year over year to $479 million and EPS of $1.20 exceeded the $1.17 consensus estimate. Analysts remain broadly bullish, although several firms have reduced their price targets.
• Neutral Sentiment: The co-packaged optics initiative is strategically promising but remains an industry-development opportunity rather than an announced near-term revenue driver. Credo Technology Joins the Co-Packaged Optics Race
• Negative Sentiment: CTO Chi Cheng sold 27,500 shares for approximately $6.1 million. The sale was conducted under a pre-arranged Rule 10b5-1 plan to cover tax withholding and reduced his holdings by only 0.49%, limiting its significance but potentially adding short-term pressure. Credo CTO Sells $6.1 Million in Stock
• Negative Sentiment: At roughly 75–78 times earnings and with a beta of 3.25, CRDO’s valuation leaves the stock sensitive to profit-taking, analyst target cuts and any concern that AI-related growth expectations are already reflected in the price.

Credo Technology Group Stock Performance

The stock has a market cap of $39.82 billion, a P/E ratio of 75.40, a price-to-earnings-growth ratio of 0.88 and a beta of 3.25. The firm has a 50-day moving average price of $208.72 and a 200-day moving average price of $200.98.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings results 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 company had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%.The firm's revenue was up 114.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.52 earnings per share. On average, research analysts predict that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Hedge Funds Weigh In On Credo Technology Group

A number of institutional investors and hedge funds have recently made changes to their positions in CRDO. City Center Advisors LLC lifted its position in shares of Credo Technology Group by 2.1% during the 2nd quarter. City Center Advisors LLC now owns 2,595 shares of the company's stock valued at $706,000 after buying an additional 53 shares in the last quarter. Versant Capital Management Inc grew its position 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 valued at $205,000 after purchasing an additional 56 shares during the period. QRG Capital Management Inc. raised 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. Bank of Nova Scotia raised 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. Finally, Orion Capital Management LLC purchased a new stake in Credo Technology Group during the 2nd quarter worth approximately $27,000. Institutional investors own 80.46% of the company's stock.

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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