Credo Technology Group (NASDAQ:CRDO) Stock Price Down 9.5% Following Insider Selling

Key Points

• Credo Technology Group shares fell 9.5% to $147.29 on sharply elevated volume after insider selling was disclosed.
• CEO William Brennan and CTO Chi Cheng sold approximately $2.9 million and $4.7 million of stock, respectively, under pre-arranged Rule 10b5-1 plans; both retained substantial holdings.
• Despite the selloff, Credo reported record revenue of $479 million, up 114.7% year over year, and earnings above estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $262.67, though high valuation and rising competition create risks.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price traded down 9.5% during trading on Friday after an insider sold shares in the company. The stock traded as low as $142.89 and last traded at $147.29. Approximately 12,595,592 shares were traded during trading, an increase of 65% from the average daily volume of 7,614,283 shares. The stock had previously closed at $162.77.

Specifically, CTO Chi Cheng sold 27,500 shares of the stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $172.62, for a total value of $4,747,050.00. Following the transaction, the chief technology officer directly owned 5,579,897 shares in the company, valued at $963,201,820.14. This represents a 0.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Brennan sold 16,666 shares of the company's stock in a transaction on Monday, October 19th. The shares were sold at an average price of $174.87, for a total transaction of $2,914,383.42. Following the completion of the transaction, the chief executive officer owned 1,584,164 shares of the company's stock, valued at approximately $277,022,758.68. The trade was a 1.04% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

CRDO has been the topic of several research analyst reports. Evercore set a $292.00 price target on shares of Credo Technology Group in a research note on Wednesday, September 2nd. Stifel Nicolaus reduced their price target on shares of Credo Technology Group from $350.00 to $310.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Wall Street Zen downgraded shares of Credo Technology Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Weiss Ratings lowered Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, October 6th. Finally, Bank of America cut their target price on Credo Technology Group from $340.00 to $275.00 and set a "buy" rating on the stock in a research report on Wednesday, September 2nd. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Credo Technology Group currently has an average rating of "Moderate Buy" and an average price target of $262.67.

More Credo Technology Group News

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

• Positive Sentiment: Credo was upgraded to Buy after reporting record quarterly revenue of $479 million, up 115% year over year, and non-GAAP EPS of $1.20 versus the $1.17 consensus. The company maintained gross margins near 50%, raised guidance and has a strong balance sheet with self-funded growth tied to hyperscale AI data centers. Credo rating upgrade article
• Positive Sentiment: Analysts remain broadly constructive, with a “Moderate Buy” consensus and an average price target of $262.67. Credo’s planned optical-cable products, which could use about 30% less power than copper alternatives, may provide another growth engine when shipments begin in 2027.
• Neutral Sentiment: Despite the selloff, the company’s valuation remains demanding, with a price-to-earnings ratio above 50. This leaves CRDO particularly sensitive to changes in AI infrastructure spending, interest rates and expectations for future growth.
• Negative Sentiment: MaxLinear management said it is targeting 20%–30% of the 1.6-terabit active electrical cable market over the next several years, challenging Credo’s dominant position. Third-party data also points to limited near-term adoption of 1.6T cables, raising concerns about the pace of Credo’s next growth phase. Credo competition and 1.6T adoption article
• Negative Sentiment: CEO William Brennan sold 16,666 shares for about $2.9 million, and CTO Chi Fung Cheng sold 27,500 shares for about $4.7 million. Both sales were made under pre-arranged Rule 10b5-1 plans and represent small ownership reductions, but repeated insider selling may weigh on sentiment. Credo insider sale filing

Credo Technology Group Trading Down 9.5%

The company has a market capitalization of $27.68 billion, a price-to-earnings ratio of 52.42, a PEG ratio of 0.73 and a beta of 3.25. The firm's 50 day simple moving average is $197.79 and its 200-day simple moving average is $207.74.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results 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 business had revenue of $479.00 million during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period in the prior year, the business posted $0.52 EPS. As a group, sell-side 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 institutional investors and hedge funds have recently made changes to their positions in CRDO. Orion Capital Management LLC acquired a new stake in shares of Credo Technology Group during the 2nd quarter valued at approximately $27,000. AlphaCentric Advisors LLC acquired a new position in shares of Credo Technology Group during the 1st quarter worth $33,000. Burkett Financial Services LLC acquired a new position in shares of Credo Technology Group during the 3rd quarter worth $33,000. Western Wealth Management LLC purchased a new stake in shares of Credo Technology Group in the 1st quarter worth about $38,000. Finally, Thurston Springer Miller Herd & Titak Inc. boosted its position in shares of Credo Technology Group by 4,900.0% in the 3rd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 200 shares of the company's stock worth $39,000 after buying an additional 196 shares in the last quarter. 80.46% of the stock is owned by institutional investors and hedge funds.

About Credo Technology Group

Credo Technology Group Holding Ltd. is a fabless semiconductor and connectivity solutions company that develops high-speed data-infrastructure technologies. Its products are designed to help data centers and communications networks move large volumes of information with lower power consumption and improved signal integrity.

The company's portfolio includes serializer/deserializer (SerDes) intellectual property, application-specific integrated circuits, active electrical cables, optical digital signal processors and related connectivity platforms.

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