Credo Technology Group (NASDAQ:CRDO) Stock Price Down 10.7% on Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price traded down 10.7% during trading on Thursday after an insider sold shares in the company. The company traded as low as $161.26 and last traded at $162.77. Approximately 8,765,673 shares traded hands during trading, an increase of 15% from the average daily volume of 7,591,728 shares. The stock had previously closed at $182.28.

Specifically, CEO William Brennan sold 16,666 shares of Credo Technology Group stock in a transaction that occurred on Monday, October 19th. The stock was sold at an average price of $174.87, for a total transaction of $2,914,383.42. Following the sale, the chief executive officer owned 1,584,164 shares of the company’s stock, valued at approximately $277,022,758.68. This trade represents a 1.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

A number of research analysts recently commented on CRDO shares. Bank of America cut their target price 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. Weiss Ratings downgraded shares of Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, October 6th. Evercore set a $292.00 price target on shares of Credo Technology Group in a research note on Wednesday, September 2nd. TD Cowen boosted their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the company a “buy” rating in a report on Tuesday, August 18th. Finally, Rosenblatt Securities restated a “neutral” rating and issued a $235.00 price objective on shares of Credo Technology Group in a research note on Thursday, October 15th. One 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’s stock. According to data from MarketBeat, Credo Technology Group currently has an average rating of “Moderate Buy” and an average price target of $262.67.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Credo’s triple-digit revenue growth, recent earnings beat and raised outlook continue to support the bullish case. Analysts cited in recent coverage believe the pullback has created significant upside, with the company benefiting from demand for high-speed connectivity products used in AI data centers. Credo Growth and Analyst Upside Article
• Positive Sentiment: Investor sentiment toward AI infrastructure has shown signs of recovery, helping drive a recent rebound in CRDO and other related technology stocks. Brown Advisory also highlighted Credo as a growth company benefiting from active stock selection opportunities amid market volatility. Credo AI Rebound Article
• Positive Sentiment: Credo’s planned optical cable, expected to ship in 2027, could provide a second growth engine. The product is designed to use about 30% less power than comparable copper cables, although the opportunity is not yet contributing revenue. Credo Optical Cable Article
• Neutral Sentiment: Valuation remains the key debate. With a high earnings multiple following a major multiyear rally, one analysis concluded the shares appear fairly priced based on currently achievable cash flows, while the consensus analyst target remains materially above recent levels. Credo Valuation Analysis
• Negative Sentiment: CEO William Brennan sold 16,666 shares worth approximately $2.9 million, reducing his direct stake by about 1.04%. The sale was made under a pre-arranged Rule 10b5-1 plan, limiting its bearish significance, but it may still weigh modestly on investor sentiment. Credo CEO SEC Filing

Credo Technology Group Trading Down 10.7%

The firm has a market capitalization of $30.59 billion, a price-to-earnings ratio of 57.93, a PEG ratio of 0.68 and a beta of 3.25. The stock has a fifty day moving average price of $199.85 and a 200-day moving average price of $207.31.

Credo Technology Group (NASDAQ:CRDO) last announced its quarterly 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 return on equity of 28.77% and a net margin of 33.83%. The business had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. During the same quarter in the previous year, the firm earned $0.52 EPS. Credo Technology Group’s quarterly revenue was up 114.7% on a year-over-year basis. On average, equities analysts expect that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Institutional Investors Weigh In On Credo Technology Group

Several large investors have recently made changes to their positions in the company. Royal Fund Management LLC lifted its holdings in Credo Technology Group by 48.2% during the 3rd quarter. Royal Fund Management LLC now owns 3,509 shares of the company’s stock valued at $684,000 after purchasing an additional 1,142 shares during the last quarter. Root Financial Partners LLC bought a new position in shares of Credo Technology Group in the third quarter valued at approximately $48,000. SBI Securities Co. Ltd. raised its stake in shares of Credo Technology Group by 7.6% in the third quarter. SBI Securities Co. Ltd. now owns 13,248 shares of the company’s stock valued at $2,581,000 after acquiring an additional 940 shares during the last quarter. Crossmark Global Holdings Inc. boosted its holdings in shares of Credo Technology Group by 36.4% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 2,018 shares of the company’s stock worth $393,000 after acquiring an additional 539 shares in the last quarter. Finally, Robbins Farley boosted its holdings in shares of Credo Technology Group by 4.0% in the 3rd quarter. Robbins Farley now owns 11,076 shares of the company’s stock worth $2,157,000 after acquiring an additional 425 shares in the last quarter. Institutional investors own 80.46% of the company’s stock.

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.