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

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price gapped down prior to trading on Tuesday following insider selling activity. The stock had previously closed at $200.84, but opened at $191.11. Credo Technology Group shares last traded at $189.0550, with a volume of 1,467,222 shares trading hands.

Specifically, CFO Daniel Fleming sold 7,580 shares of the business’s stock in a transaction that occurred on Thursday, October 8th. The stock was sold at an average price of $212.91, for a total transaction of $1,613,857.80. Following the completion of the transaction, the chief financial officer directly owned 492,208 shares in the company, valued at approximately $104,796,005.28. The trade was a 1.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of the stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $221.48, for a total value of $6,090,700.00. Following the completion of the transaction, the chief technology officer directly owned 5,634,897 shares of the company’s stock, valued at $1,248,016,987.56. This trade represents a 0.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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.

Analysts Set New Price Targets

CRDO has been the topic of several analyst reports. Zacks Research cut Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. reduced 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. Bank of America reduced their price target on Credo Technology Group from $340.00 to $275.00 and set a “buy” rating for the company in a research report on Wednesday, September 2nd. Rosenblatt Securities increased their price target on Credo Technology Group from $215.00 to $235.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 2nd. Finally, Stifel Nicolaus decreased their price target on Credo Technology Group from $350.00 to $310.00 and set a “buy” rating for the company in a research note on Monday, October 5th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $262.67.

Credo Technology Group News Summary

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

• Positive Sentiment: Credo’s latest outlook remains robust, with revenue expected at approximately $525 million to $535 million and fiscal 2027 revenue projected to increase by more than 85%. The company’s most recent quarter delivered 114.7% year-over-year revenue growth to $479 million, exceeding analyst expectations. Credo revenue outlook article
• Positive Sentiment: The company introduced its 1.6T ZeroFlap Active Light Cable for AI data centers. The product is designed to provide longer reach, lower power consumption and improved reliability, potentially expanding Credo’s addressable market as hyperscalers increase networking capacity. Credo ZeroFlap cable article
• Positive Sentiment: Credo is helping lead an Open Compute Project workstream to standardize short-reach micro-emitter optics. If approved and adopted, the effort could support future optical connectivity sales and help reduce the company’s reliance on a small number of major customers. Credo SRMO workstream article
• Neutral Sentiment: Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating, but several firms have recently reduced price targets. The stock’s premium valuation and dependence on two large customers leave limited room for execution setbacks. Credo valuation and customer concentration article
• Negative Sentiment: CRDO declined alongside AI infrastructure peers, including Astera Labs, in what appears to be sector-wide profit-taking rather than a newly reported deterioration in Credo’s operations. The decline highlights the stock’s elevated volatility and sensitivity to AI spending sentiment. Credo stock decline analysis
• Negative Sentiment: CTO Chi Cheng sold 31,290 shares, while CFO Daniel Fleming previously sold 7,580 shares; both transactions were conducted under pre-arranged Rule 10b5-1 plans. The sales were modest relative to their remaining holdings but may still weigh on sentiment.

Credo Technology Group Price Performance

The company has a market cap of $33.69 billion, a P/E ratio of 63.78, a PEG ratio of 0.79 and a beta of 3.25. The company has a fifty day simple moving average of $207.08 and a 200-day simple moving average of $204.49.

Credo Technology Group (NASDAQ:CRDO) last announced its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, beating analysts’ consensus estimates of $1.17 by $0.03. The company had revenue of $479.00 million during the quarter, compared to the consensus estimate of $473.30 million. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%. The company’s quarterly revenue was up 114.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.52 EPS. On average, analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Institutional Investors Weigh In On Credo Technology Group

A number of institutional investors and hedge funds have recently modified their holdings of CRDO. GAMMA Investing LLC lifted its stake in Credo Technology Group by 2.6% in the third quarter. GAMMA Investing LLC now owns 1,986 shares of the company’s stock valued at $387,000 after acquiring an additional 51 shares during the last quarter. City Center Advisors LLC increased its stake in shares of Credo Technology Group by 2.1% during the 2nd quarter. City Center Advisors LLC now owns 2,595 shares of the company’s stock worth $706,000 after purchasing an additional 53 shares during the last quarter. Versant Capital Management Inc increased its stake in shares of Credo Technology Group by 8.0% during the 2nd quarter. Versant Capital Management Inc now owns 755 shares of the company’s stock worth $205,000 after purchasing an additional 56 shares during the last quarter. QRG Capital Management Inc. increased its stake in shares of Credo Technology Group by 1.7% during the 1st quarter. QRG Capital Management Inc. now owns 5,402 shares of the company’s stock worth $507,000 after purchasing an additional 91 shares during the last quarter. Finally, Krilogy Financial LLC raised its holdings in shares of Credo Technology Group by 8.7% during the 3rd quarter. Krilogy Financial LLC now owns 1,136 shares of the company’s stock valued at $228,000 after purchasing an additional 91 shares in the last quarter. 80.46% of the stock is owned by institutional investors and hedge funds.

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.