Credo Technology Group (NASDAQ:CRDO) Shares Down 2.8% on Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price dropped 2.8% on Monday after an insider sold shares in the company. The company traded as low as $206.06 and last traded at $212.48. 7,635,522 shares changed hands during mid-day trading, an increase of 1% from the average session volume of 7,535,044 shares. The stock had previously closed at $218.64.

Specifically, COO Yat Lam sold 50,000 shares of the firm’s stock in a transaction on Thursday, October 1st. The stock was 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 directly owned 2,254,169 shares of the company’s stock, valued at $462,600,562.18. This trade represents a 2.17% decrease in their ownership of the stock. 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. Also, CTO Chi Cheng sold 27,500 shares of the company’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total value of $5,333,075.00. Following the transaction, the chief technology officer directly owned 5,662,397 shares in the company, valued at $1,098,108,650.21. This represents a 0.48% 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. In other news, COO Yat Lam sold 50,000 shares of the stock in a transaction on Friday, September 25th. The stock was sold at an average price of $206.30, for a total transaction of $10,315,000.00. Following the completion of 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CRDO. Bank of America lowered their price objective on Credo Technology Group from $340.00 to $275.00 and set a “buy” rating on the stock in a research note on Wednesday, September 2nd. JPMorgan Chase & Co. cut their target price on shares of Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating for the company in a research report on Wednesday, September 2nd. 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 raised shares of Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, September 18th. Finally, Rosenblatt Securities upped their price target on shares of Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a research note on Wednesday, September 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. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $262.67.

Key Stories Impacting 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 Trading Down 2.8%

The firm has a market cap of $39.94 billion, a PE ratio of 75.62, a price-to-earnings-growth ratio of 0.87 and a beta of 3.25. The stock has a fifty day simple moving average of $207.21 and a two-hundred day simple moving average of $198.59.

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of CRDO. Corient Private Wealth LLC grew its position in shares of Credo Technology Group by 239,024.5% during the 4th quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company’s stock valued at $517,835,000 after purchasing an additional 3,597,318 shares in the last quarter. Atreides Management LP purchased a new stake in shares of Credo Technology Group in the first quarter worth $102,434,000. The Manufacturers Life Insurance Company boosted its stake in Credo Technology Group by 192.1% during the first quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company’s stock valued at $98,290,000 after buying an additional 688,596 shares during the period. H&H International Investment LLC boosted its stake in Credo Technology Group by 431.6% during the first quarter. H&H International Investment LLC now owns 751,200 shares of the company’s stock valued at $70,515,000 after buying an additional 609,900 shares during the period. Finally, Scge Management L.P. purchased a new position in Credo Technology Group during the fourth quarter worth about $82,017,000. 80.46% of the stock is owned by 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.