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

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

Specifically, insider James Laufman sold 5,000 shares of Credo Technology Group stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $205.00, for a total transaction of $1,025,000.00. Following the sale, the insider owned 164,223 shares of the company’s stock, valued at $33,665,715. The trade was a 2.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Yat Lam sold 50,000 shares of the company’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $205.22, for a total transaction of $10,261,000.00. Following the sale, the chief operating officer directly owned 2,254,169 shares of the company’s stock, valued at $462,600,562.18. The trade was a 2.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In other news, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction dated 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 of the company’s stock, valued at approximately $1,098,108,650.21. This trade represents a 0.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

CRDO has been the subject of several research reports. Mizuho dropped their price objective on shares of Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating for the company in a research note on Monday, September 21st. Wall Street Zen lowered shares of Credo Technology Group from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Barclays boosted their target price on Credo Technology Group from $260.00 to $300.00 and gave the stock an “overweight” rating in a report on Monday, July 20th. Weiss Ratings upgraded Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, September 18th. Finally, Bank of America cut their price target on Credo Technology Group from $340.00 to $275.00 and set a “buy” rating for the company in a report on Wednesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $262.67.

Key Credo Technology Group News

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

• Positive Sentiment: Credo’s active electrical cables connect GPUs and switches in AI data centers, positioning the company to benefit from continued hyperscaler infrastructure spending. Analysts and commentators also highlight the company’s expanding optical-connectivity portfolio and potential shift from copper to optical products. One Semiconductor Stock With a Potential 200% Upside The Transformation From Copper To Optical Is A Major Opportunity Still Under-Appreciated
• Positive Sentiment: The company’s latest quarterly results remain a major growth driver: revenue rose 114.7% year over year to $479 million, exceeding the $473.3 million consensus estimate, while earnings per share also topped expectations. The results marked Credo’s seventh consecutive quarter of triple-digit revenue growth. Credo Grew Revenue 114.70%
• Positive Sentiment: Stifel Nicolaus maintained a “buy” rating and set a $310 price target, implying meaningful upside from recent levels. The firm lowered its target from $350, but the revised view still reflects confidence in Credo’s long-term AI connectivity opportunity. Credo Given New $310 Price Target at Stifel Nicolaus
• Neutral Sentiment: Investor sentiment is mixed because CRDO trades at a premium valuation, with a reported price-to-earnings ratio near 79. Strong margins and AI demand support the premium, but execution risks and high expectations could increase volatility. Credo Stock at a Premium Valuation
• Negative Sentiment: Insider James Laufman sold 5,000 shares for approximately $1.03 million, reducing his direct position by 2.95%. He still retains a substantial stake, but the sale contributed to near-term selling pressure and investor caution. James Laufman Insider Transactions

Credo Technology Group Stock Up 3.9%

The stock has a market capitalization of $41.51 billion, a price-to-earnings ratio of 78.59, a PEG ratio of 0.85 and a beta of 3.25. The company’s 50-day moving average is $207.87 and its 200-day moving average is $200.19.

Credo Technology Group (NASDAQ:CRDO) last issued its earnings results on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, topping analysts’ consensus estimates 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 company had revenue of $479.00 million for the quarter, compared to the consensus estimate of $473.30 million. During the same period in the previous year, the firm earned $0.52 earnings per share. Credo Technology Group’s quarterly revenue was up 114.7% compared to the same quarter last year. Sell-side analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CRDO. Bank of America Corp DE increased its stake in Credo Technology Group by 13.7% during the second quarter. Bank of America Corp DE now owns 2,182,764 shares of the company’s stock worth $593,603,000 after acquiring an additional 262,479 shares during the last quarter. Corient Private Wealth LLC grew its holdings 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 worth $517,835,000 after purchasing an additional 3,597,318 shares during the period. Atreides Management LP grew its holdings in shares of Credo Technology Group by 3.5% during the 2nd quarter. Atreides Management LP now owns 1,129,285 shares of the company’s stock worth $307,109,000 after purchasing an additional 38,052 shares during the period. Barclays PLC increased its position in shares of Credo Technology Group by 33.8% during the 4th quarter. Barclays PLC now owns 1,448,004 shares of the company’s stock worth $208,353,000 after purchasing an additional 365,923 shares during the last quarter. Finally, Franklin Resources Inc. increased its position in shares of Credo Technology Group by 3.4% during the 4th quarter. Franklin Resources Inc. now owns 1,125,369 shares of the company’s stock worth $161,929,000 after purchasing an additional 36,681 shares during 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 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.