Credo Technology Group (NASDAQ:CRDO) Stock Jumps 7.8% – Here’s What Happened

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price was up 7.8% during mid-day trading on Tuesday. The company traded as high as $152.62 and last traded at $150.91. 6,026,835 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 7,619,412 shares. The stock had previously closed at $140.02.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Credo and Oracle secured approval for two optical telemetry standards from the Open Compute Project. The standards support data-center reliability and could strengthen Credo’s position in next-generation AI infrastructure. Credo and Oracle Drive AI Optical Innovation
• Positive Sentiment: Credo’s latest reported quarter showed revenue growth of 114.7% year over year, with revenue and earnings per share above consensus estimates, providing a strong business backdrop to the sell-off. Credo Revenue More Than Doubled
• Negative Sentiment: Investors are concerned that Democratic election victories could lead to limits on data-center development, particularly in Texas, and slow AI infrastructure spending. That could weigh on demand for Credo’s connectivity products; however, the article notes that a slower buildout is not reflected in the company’s guidance or analyst estimates. Credo Sinks as Election Results Stoke AI Fears
• Negative Sentiment: The political concerns have contributed to a broader sell-off in chip and AI data-center stocks, adding market-wide pressure to CRDO beyond company-specific news. Chip Stocks Feeling Blue After Democratic Party Victories

Analyst Ratings Changes

Several analysts recently commented on CRDO shares. JPMorgan Chase & Co. dropped their price target on 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. TD Cowen raised their price objective on Credo Technology Group from $260.00 to $300.00 and gave the company a “buy” rating in a report on Tuesday, August 18th. Weiss Ratings lowered Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, October 6th. Evercore set a $292.00 target price on shares of Credo Technology Group in a research note on Wednesday, September 2nd. Finally, Mizuho dropped their target price on shares of Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating for the company in a report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $262.67.

Credo Technology Group Trading Down 17.7%

The stock’s fifty day simple moving average is $181.07 and its 200 day simple moving average is $180.45. The company has a market cap of $21.11 billion, a price-to-earnings ratio of 46.12, a P/E/G ratio of 0.54 and a beta of 3.29.

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

Insider Buying and Selling

In other Credo Technology Group news, CTO Chi Cheng sold 27,500 shares of the company’s stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $193.93, for a total value of $5,333,075.00. Following the completion of the sale, 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 50,000 shares of the firm’s stock in a transaction on Friday, September 25th. The stock was sold at an average price of $206.30, for a total value of $10,315,000.00. Following the completion of the sale, the chief operating officer directly owned 2,479,169 shares of the company’s stock, valued at $511,452,564.70. This trade represents a 1.98% decrease in their ownership of the stock. 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. Over the last 90 days, insiders have sold 352,538 shares of company stock worth $67,200,077. 9.06% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Orion Capital Management LLC purchased a new stake in shares of Credo Technology Group during the second quarter worth approximately $27,000. Hoey Investments Inc. acquired a new stake in Credo Technology Group in the third quarter valued at approximately $31,000. Burkett Financial Services LLC acquired a new stake in Credo Technology Group in the third quarter valued at approximately $33,000. Thurston Springer Miller Herd & Titak Inc. lifted its stake in Credo Technology Group by 4,900.0% in the third quarter. Thurston Springer Miller Herd & Titak Inc. now owns 200 shares of the company’s stock worth $39,000 after acquiring an additional 196 shares during the last quarter. Finally, Alpine Bank Wealth Management purchased a new position in Credo Technology Group in the third quarter worth approximately $40,000. Hedge funds and other institutional investors own 80.46% of the company’s stock.

Credo Technology Group Company Profile

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.