Credo Technology Group (NASDAQ:CRDO) Stock Jumps 3.9% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price traded up 3.9% during mid-day trading on Tuesday. The company traded as high as $226.60 and last traded at $220.83. Approximately 6,928,786 shares were traded during mid-day trading, a decline of 8% from the average daily volume of 7,532,901 shares. The stock had previously closed at $212.48.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Credo supplies active electrical cables (AECs) that connect GPUs and switches in AI data centers. Continued hyperscaler spending, new product launches and a potential shift from copper to optical connectivity could materially expand its addressable market. One Semiconductor Stock With a Potential 200% Upside
• Positive Sentiment: Credo has delivered seven consecutive quarters of triple-digit revenue growth. In its latest reported quarter, revenue rose 114.7% year over year to $479 million, exceeding estimates, while EPS also topped expectations. Strong margins and AI-related demand reinforce the bullish growth narrative. Credo Has One Number That Could Change the Stock’s Long-Term Story
• Positive Sentiment: Stifel Nicolaus retained a “buy” rating and set a $310 price target, implying meaningful upside based on Credo’s growth prospects. The target was lowered from $350, but the revised target remains above the stock’s recent trading range. Credo Technology Group Given New $310 Price Target
• Neutral Sentiment: Analysts generally remain constructive, with a consensus “moderate buy” rating, but price targets vary widely. Commentary highlights the opportunity in optical products and AI connectivity while noting that execution must justify the premium valuation. Credo Stock at a Premium Valuation: Opportunity or Stay Cautious?
• Negative Sentiment: Insider James Laufman sold 5,000 shares for approximately $1.03 million, reducing his direct stake by 2.95%. He still owns a substantial position, but the sale has raised near-term concerns about insider confidence and contributed to selling pressure. James Laufman Insider Transactions

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on CRDO shares. Weiss Ratings raised shares of Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, September 18th. JPMorgan Chase & Co. decreased their price objective on shares of Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating for the company in a report on Wednesday, September 2nd. Rosenblatt Securities lifted their price objective on shares of Credo Technology Group from $215.00 to $235.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 2nd. TD Cowen increased their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the company a “buy” rating in a research report on Tuesday, August 18th. Finally, Stifel Nicolaus decreased their price target on shares of Credo Technology Group from $350.00 to $310.00 and set a “buy” rating for the company in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $262.67.

Credo Technology Group Stock Performance

The firm has a market capitalization of $41.50 billion, a P/E ratio of 78.59, a PEG ratio of 0.87 and a beta of 3.25. The stock has a 50 day moving average of $207.30 and a 200-day moving average of $199.35.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.03. The company had revenue of $479.00 million for 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%. The company’s quarterly revenue was up 114.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.52 earnings per share. As a group, sell-side analysts expect 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 firm’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 completion of the transaction, the chief technology officer directly owned 5,662,397 shares of the company’s stock, valued at $1,098,108,650.21. This trade represents a 0.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Brennan sold 16,672 shares of the company’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $151.88, for a total transaction of $2,532,143.36. Following the completion of the transaction, the chief executive officer directly owned 1,600,830 shares in the company, valued at approximately $243,134,060.40. The trade was a 1.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 412,246 shares of company stock valued at $83,765,709. Corporate insiders own 9.06% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CRDO. California State Teachers Retirement System grew its position in Credo Technology Group by 2.2% during the 1st quarter. California State Teachers Retirement System now owns 240,886 shares of the company’s stock worth $22,612,000 after acquiring an additional 5,113 shares during the last quarter. Corsair Capital Management L.P. bought a new stake in shares of Credo Technology Group during the 1st quarter valued at about $469,000. Lazard Asset Management LLC grew its holdings in shares of Credo Technology Group by 55.6% during the 1st quarter. Lazard Asset Management LLC now owns 67,051 shares of the company’s stock worth $6,294,000 after acquiring an additional 23,949 shares during the period. Quantinno Capital Management LP raised its holdings in Credo Technology Group by 68.4% in the first quarter. Quantinno Capital Management LP now owns 34,124 shares of the company’s stock worth $3,203,000 after purchasing an additional 13,859 shares in the last quarter. Finally, Estuary Capital Management LP increased its stake in shares of Credo Technology Group by 87.4% in the 1st quarter. Estuary Capital Management LP now owns 412,227 shares of the company’s stock worth $38,696,000 after acquiring an additional 192,218 shares in the last quarter. 80.46% of the stock is currently owned by hedge funds and other institutional investors.

Credo Technology Group Company Profile

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.