Credo Technology Group (NASDAQ:CRDO) Stock Price Up 4.2% – Still a Buy?

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO) were up 4.2% during mid-day trading on Thursday . The company traded as high as $169.80 and last traded at $168.25. 8,724,033 shares were traded during mid-day trading, an increase of 17% from the average session volume of 7,428,350 shares. The stock had previously closed at $161.49.

Key Credo Technology Group News

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

• Positive Sentiment: New 1.6T ZeroFlap transceivers strengthen the AI-growth story. Credo launched 224G-based ZeroFlap optical transceivers designed for 1.6T ports, bringing its reliability architecture to faster, denser AI networks. The products target bandwidth bottlenecks in hyperscale data centers and expand Credo’s optical roadmap. What’s Going On With Credo Technology Stock on Thursday?
• Positive Sentiment: Operating momentum remains exceptional. Credo’s latest quarter produced $479 million in revenue, up 114.7% year over year, and EPS of $1.20 versus the $1.17 consensus estimate. Investors continue to view the company as a key supplier of cables, optical DSPs, retimers and other connectivity components needed to link AI GPU clusters. Credo Technology’s Earnings Call Signals Optical-Fueled Surge
• Positive Sentiment: Long-term upside depends on sustained AI spending. Analysts and independent forecasts highlight Credo’s position at the infrastructure “pinch point” of the AI buildout. A bullish scenario depends on continued hyperscaler capital spending, expanding optical adoption and successful execution of the company’s OmniConnect and other connectivity platforms. If AI Spending Keeps Exploding, Credo Stock Could Look Very Different by 2030
• Neutral Sentiment: Investor sentiment remains divided after a sharp pullback. CRDO has fallen roughly 50% from its yearly high, despite rapid growth. The decline has created potential valuation appeal for bullish investors, but the stock remains highly volatile and trades below its longer-term moving averages. Credo Technology stock is slumping despite its strong revenue growth
• Negative Sentiment: Free cash flow trails adjusted profit. Credo reportedly generated about $236 million in adjusted profit but only $83 million in free cash flow, raising questions about working-capital needs and earnings quality ahead of its next results. Credo’s $236 Million Adjusted Profit Came With Just $83 Million in Free Cash Flow
• Negative Sentiment: The CEO sold shares. CEO William Brennan sold 16,672 shares worth approximately $2.5 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only 1.03%, limiting its significance, but it may weigh modestly on sentiment. SEC Form 4 Insider Sale

Analyst Ratings Changes

A number of brokerages have weighed in on CRDO. The Goldman Sachs Group reissued a “buy” rating and set a $250.00 price target on shares of Credo Technology Group in a research report on Tuesday, June 2nd. Zacks Research cut shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. Needham & Company LLC increased their price target on shares of Credo Technology Group from $220.00 to $275.00 and gave the company a “buy” rating in a report on Monday, June 1st. Jefferies Financial Group upped their target price on Credo Technology Group from $225.00 to $270.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Finally, Bank of America reduced their price target on Credo Technology Group from $340.00 to $275.00 and set a “buy” rating for the company in a research note on Wednesday, September 2nd. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $267.39.

Credo Technology Group Trading Up 4.2%

The stock has a market capitalization of $31.62 billion, a P/E ratio of 59.88, a P/E/G ratio of 0.60 and a beta of 3.22. The business has a 50-day moving average price of $215.50 and a two-hundred day moving average price of $191.60.

Credo Technology Group (NASDAQ:CRDO) last released its earnings results on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, beating the consensus estimate of $1.17 by $0.03. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The firm had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. During the same period last year, the firm earned $0.52 EPS. The business’s quarterly revenue was up 114.7% compared to the same quarter last year. On average, sell-side analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $205.54, for a total value of $5,652,350.00. Following the sale, the chief technology officer directly owned 5,799,870 shares in the company, valued at approximately $1,192,105,279.80. This trade represents a 0.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 55,441 shares of the firm’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the sale, the chief operating officer owned 2,529,169 shares in the company, valued at $538,763,580.38. This represents a 2.15% 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. Insiders sold a total of 302,246 shares of company stock worth $67,575,984 in the last ninety days. Insiders own 9.06% of the company’s stock.

Institutional Trading of Credo Technology Group

Institutional investors have recently modified their holdings of the business. City Center Advisors LLC boosted its holdings in shares of Credo Technology Group by 2.1% during the second quarter. City Center Advisors LLC now owns 2,595 shares of the company’s stock worth $706,000 after purchasing an additional 53 shares during the period. Versant Capital Management Inc increased its holdings in Credo Technology Group by 8.0% during the 2nd 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 Credo Technology Group by 1.7% during the 1st quarter. QRG Capital Management Inc. now owns 5,402 shares of the company’s stock valued at $507,000 after purchasing an additional 91 shares during the last quarter. Bank of Nova Scotia raised its position in Credo Technology Group by 1.6% during the 1st quarter. Bank of Nova Scotia now owns 6,026 shares of the company’s stock valued at $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 in the 2nd quarter worth approximately $27,000. Institutional investors own 80.46% of the company’s stock.

Credo Technology Group Company Profile

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.