Credo Technology Group (NASDAQ:CRDO) Trading Up 2.8% - Still a Buy?

Key Points

• Credo shares rose 2.8% to $192.56 on heavier-than-average volume, though the stock remains below its 50-day moving average of $210.92. Its high valuation and 3.22 beta underscore elevated risk.
• The company continues to benefit from strong AI infrastructure demand, including PCI-SIG 6.x certification for its Toucan retimer and new 1.6T ZeroFlap optical products. Recent quarterly revenue surged 114.7% year over year to $479 million, while EPS of $1.20 beat estimates.
• Analysts maintain a broadly positive outlook, with a “Moderate Buy” consensus and $264.89 target price, but concerns include premium valuation, customer concentration, execution risk, and approximately $64.7 million of insider stock sales in the past quarter.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price was up 2.8% during trading on Tuesday . The company traded as high as $194.00 and last traded at $192.56. Approximately 8,145,363 shares were traded during mid-day trading, an increase of 9% from the average daily volume of 7,494,017 shares. The stock had previously closed at $187.27.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Credo announced that its Toucan retimer achieved PCI-SIG 6.x compliance. The certification supports interoperability with the latest PCI Express technology and could improve the product’s positioning in AI servers, data centers, and high-speed computing infrastructure. Credo Toucan retimer PCIe compliance
• Positive Sentiment: Credo’s new 1.6T ZeroFlap optical products expand its networking portfolio as management targets more than $600 million in fiscal 2027 optical revenue. The launch strengthens the company’s exposure to AI data-center connectivity spending. Credo 1.6T optics
• Positive Sentiment: Recent coverage emphasizes Credo’s triple-digit revenue growth, earnings beat, raised guidance, and expected fiscal 2027 revenue growth of more than 85%. The company’s latest reported quarter included $479 million of revenue, up 114.7% year over year, and earnings of $1.20 per share versus a $1.17 consensus estimate. Credo growth outlook
• Positive Sentiment: Credo’s addition to the FTSE All-World Index may increase institutional visibility and potentially generate demand from index-tracking funds. Credo added to FTSE All-World Index
• Neutral Sentiment: Mizuho lowered its price target from $290 to $245 but maintained an Outperform rating. The reduction signals greater valuation caution, while the rating still indicates expected upside. Mizuho price target update
• Negative Sentiment: Credo CTO Chi Fung Cheng sold 27,500 shares for approximately $4.6 million under a pre-arranged Rule 10b5-1 plan. The sale represented only 0.48% of his holdings, limiting its importance, but repeated insider selling may weigh on investor sentiment. Credo CTO stock sale
• Negative Sentiment: Bearish analyses point to CRDO’s premium valuation, customer concentration, execution risk, and substantial decline from its highs. These concerns could limit the stock’s recovery even if AI-related demand remains strong. Bearish Credo analysis

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on CRDO. Wall Street Zen lowered Credo Technology Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Evercore set a $292.00 price target on Credo Technology Group in a report on Wednesday, September 2nd. Stifel Nicolaus upped their price target on Credo Technology Group from $250.00 to $350.00 and gave the company a "buy" rating in a research report on Monday, June 22nd. Weiss Ratings raised Credo Technology Group from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday. Finally, The Goldman Sachs Group restated a "buy" rating and set a $250.00 price objective on shares of Credo Technology Group in a research report on Tuesday, June 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $264.89.

Credo Technology Group Stock Up 2.8%

The business has a 50-day moving average of $210.92 and a 200-day moving average of $193.06. The stock has a market cap of $36.19 billion, a price-to-earnings ratio of 68.53, a PEG ratio of 0.70 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. The firm had revenue of $479.00 million for 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 firm's revenue was up 114.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.52 earnings per share. Equities analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Insider Buying and Selling at Credo Technology Group

In related news, CEO William Brennan sold 16,672 shares of Credo Technology Group stock in a transaction on Monday, September 14th. The shares were sold at an average price of $151.88, for a total value of $2,532,143.36. Following the completion of the sale, the chief executive officer owned 1,600,830 shares of the company's stock, valued at approximately $243,134,060.40. The trade was a 1.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of the company's stock in a transaction on Monday, July 27th. The stock was sold at an average price of $205.54, for a total transaction of $5,652,350.00. Following the completion of the sale, the chief technology officer owned 5,799,870 shares of the company's stock, valued at $1,192,105,279.80. This represents a 0.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 302,246 shares of company stock worth $64,700,584 over the last quarter. Company insiders own 9.06% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. California State Teachers Retirement System raised its position in shares of Credo Technology Group by 2.2% during the 1st quarter. California State Teachers Retirement System now owns 240,886 shares of the company's stock valued at $22,612,000 after acquiring an additional 5,113 shares during the last quarter. Corsair Capital Management L.P. bought a new position in shares of Credo Technology Group during the first quarter worth $469,000. Lazard Asset Management LLC increased its position in shares of Credo Technology Group by 55.6% in the 1st quarter. Lazard Asset Management LLC now owns 67,051 shares of the company's stock valued at $6,294,000 after buying an additional 23,949 shares in the last quarter. Quantinno Capital Management LP increased its position in shares of Credo Technology Group by 68.4% in the 1st quarter. Quantinno Capital Management LP now owns 34,124 shares of the company's stock valued at $3,203,000 after buying an additional 13,859 shares in the last quarter. Finally, Estuary Capital Management LP increased its holdings in shares of Credo Technology Group by 87.4% in the first quarter. Estuary Capital Management LP now owns 412,227 shares of the company's stock worth $38,696,000 after acquiring an additional 192,218 shares in the last quarter. 80.46% of the stock is currently owned by institutional investors and hedge funds.

About Credo Technology Group

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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