Credo Technology Group (NASDAQ:CRDO) Shares Down 7.8% After Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price was down 7.8% on Tuesday after an insider sold shares in the company. The company traded as low as $238.97 and last traded at $239.18. Approximately 7,522,726 shares traded hands during mid-day trading, an increase of 0% from the average daily volume of 7,514,819 shares. The stock had previously closed at $259.41.

Specifically, CFO Daniel W. Fleming sold 40,000 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $249.48, for a total value of $9,979,200.00. Following the completion of the sale, the chief financial officer owned 501,873 shares of the company’s stock, valued at $125,207,276.04. This represents a 7.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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, Director Fariba Danesh sold 1,100 shares of the stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $236.34, for a total transaction of $259,974.00. Following the completion of the sale, the director directly owned 7,017 shares of the company’s stock, valued at $1,658,397.78. The trade was a 13.55% decrease in their position. The disclosure for this sale is available in the SEC filing. In other news, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $259.53, for a total value of $7,137,075.00. Following the completion of the sale, the chief technology officer owned 5,992,370 shares of the company’s stock, valued at $1,555,199,786.10. This represents a 0.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on CRDO shares. Zacks Research raised shares of Credo Technology Group from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 19th. JPMorgan Chase & Co. upped their target price on shares of Credo Technology Group from $230.00 to $250.00 and gave the company an “overweight” rating in a research note on Tuesday, June 2nd. Needham & Company LLC upped their target price on shares of Credo Technology Group from $220.00 to $275.00 and gave the company a “buy” rating in a research note on Monday, June 1st. Roth Mkm upped their target price on shares of Credo Technology Group from $200.00 to $300.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Finally, Susquehanna upped their target price on shares of Credo Technology Group from $200.00 to $235.00 and gave the company a “positive” rating in a research note on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Credo Technology Group presently has an average rating of “Moderate Buy” and a consensus price target of $248.41.

More Credo Technology Group News

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

• Positive Sentiment: Credo’s latest quarterly results beat expectations, with revenue and EPS both topping estimates and growth remaining very strong year over year, reinforcing the view that AI-related demand is still accelerating.
• Positive Sentiment: Multiple commentaries point to Credo’s expanding opportunity in AI interconnect, optical products, and scale-up networking, which supports the stock’s bull case and raises hopes for continued margin expansion.
• Positive Sentiment: Mizuho reiterated an Outperform rating and a $290 price target, adding to the bullish analyst backdrop and helping validate the stock’s elevated valuation.
• Positive Sentiment: New writeups frame CRDO as one of the standout semiconductor momentum names, with some pieces debating whether it can reach $300 by year-end, underscoring strong investor enthusiasm.
• Neutral Sentiment: CFO Daniel W. Fleming sold 40,000 shares under a pre-arranged 10b5-1 plan for tax withholding purposes related to equity vesting; the filing is notable but does not necessarily signal a change in fundamentals. SEC Form 4 filing
• Negative Sentiment: After a huge run-up, some analysts and commentators are warning that CRDO’s valuation is becoming stretched, which could leave the stock vulnerable if future earnings, customer ramps, or margin gains disappoint.

Credo Technology Group Stock Down 7.8%

The firm has a market capitalization of $44.12 billion, a PE ratio of 96.44, a P/E/G ratio of 1.32 and a beta of 3.22. The firm’s 50 day moving average price is $187.62 and its two-hundred day moving average price is $151.53.

Credo Technology Group (NASDAQ:CRDO) last announced its earnings results on Monday, June 1st. The company reported $1.16 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.14. The business had revenue of $437.00 million during the quarter, compared to the consensus estimate of $431.80 million. Credo Technology Group had a net margin of 35.37% and a return on equity of 36.99%. The business’s quarterly revenue was up 157.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.20 earnings per share. On average, sell-side analysts anticipate that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in Credo Technology Group by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 16,585,229 shares of the company’s stock valued at $2,386,449,000 after acquiring an additional 59,849 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in Credo Technology Group by 18.3% during the 3rd quarter. JPMorgan Chase & Co. now owns 7,699,456 shares of the company’s stock valued at $1,121,118,000 after acquiring an additional 1,190,522 shares during the last quarter. State Street Corp boosted its stake in Credo Technology Group by 23.4% during the 4th quarter. State Street Corp now owns 4,486,320 shares of the company’s stock valued at $645,537,000 after acquiring an additional 849,654 shares during the last quarter. Geode Capital Management LLC boosted its stake in Credo Technology Group by 5.0% during the 4th quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company’s stock valued at $555,117,000 after acquiring an additional 184,676 shares during the last quarter. Finally, Corient Private Wealth LLC boosted its stake in 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 acquiring an additional 3,597,318 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors.

Credo Technology Group Company Profile

Credo Technology Group, Inc (NASDAQ: CRDO) is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo’s product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.