Credo Technology Group (NASDAQ:CRDO) Shares Gap Up – Should You Buy?

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO) gapped up prior to trading on Wednesday. The stock had previously closed at $171.51, but opened at $184.09. Credo Technology Group shares last traded at $183.9410, with a volume of 1,494,768 shares changing hands.

Credo Technology Group News Summary

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

• Positive Sentiment: Credo’s latest quarter delivered revenue growth of 114.7% year over year, with earnings and revenue exceeding analyst expectations. The company also raised its outlook, reinforcing expectations for continued demand for high-speed connectivity products used in AI data centers. Two Wall Street firms reportedly see significant upside following the recent selloff. Credo upside analysis
• Positive Sentiment: Credo is developing optical cables expected to use approximately 30% less power than comparable copper products. Although shipments are not expected until 2027, the technology could provide a second growth engine as data-center operators seek more power-efficient connectivity solutions. Credo optical cable opportunity
• Neutral Sentiment: Analysts remain broadly constructive, with a reported average price target of $262.67 and a “Moderate Buy” consensus. However, another valuation analysis suggested the stock may already be fairly priced after its multiyear rally, highlighting the risk that strong growth expectations are reflected in the shares. Credo valuation analysis
• Negative Sentiment: CEO William Brennan sold 16,666 shares for approximately $2.9 million, while CTO Chi Cheng sold 27,500 shares for approximately $4.7 million. Both transactions were executed under pre-arranged Rule 10b5-1 plans, reducing their value as discretionary bearish signals, but the insider selling may still pressure investor sentiment. Credo insider sale filing
• Negative Sentiment: CRDO trades at an elevated valuation, with a reported P/E ratio above 57, making the stock especially sensitive to changes in AI enthusiasm, interest rates and concerns about whether future growth can justify its premium price. Recent commentary also cautioned that it may be too early to buy the channel bottom or the dip. Credo channel and valuation analysis

Wall Street Analyst Weigh In

Several equities research analysts recently commented on CRDO shares. Susquehanna increased their price target on Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a report on Tuesday, July 21st. Weiss Ratings lowered Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, October 6th. JPMorgan Chase & Co. lowered their price objective on Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating on the stock in a research note on Wednesday, September 2nd. Mizuho dropped their target price on Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating for the company in a report on Monday, September 21st. Finally, Bank of America dropped their target price 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 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. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $262.67.

Credo Technology Group Trading Down 10.7%

The stock has a market capitalization of $30.59 billion, a PE ratio of 61.58, a price-to-earnings-growth ratio of 0.73 and a beta of 3.25. The firm’s fifty day moving average is $197.79 and its 200-day moving average is $207.74.

Credo Technology Group (NASDAQ:CRDO) last posted its earnings results 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 for the quarter, compared to analysts’ expectations of $473.30 million. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. Credo Technology Group’s revenue for the quarter was up 114.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.52 earnings per share. As a group, equities analysts predict that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Insider Activity at Credo Technology Group

In related news, COO Yat Lam sold 55,441 shares of the stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the transaction, the chief operating officer owned 2,529,169 shares of the company’s stock, valued at approximately $538,763,580.38. This trade represents a 2.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of Credo Technology Group stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total transaction of $5,333,075.00. Following the completion of the sale, the chief technology officer 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 485,452 shares of company stock worth $96,572,086. Company insiders own 9.06% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System lifted its stake 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 in the last quarter. Corsair Capital Management L.P. purchased a new position in Credo Technology Group during the 1st quarter valued at about $469,000. Lazard Asset Management LLC grew its position in Credo Technology Group by 55.6% in the 1st quarter. Lazard Asset Management LLC now owns 67,051 shares of the company’s stock valued at $6,294,000 after acquiring an additional 23,949 shares in the last quarter. Quantinno Capital Management LP grew its position in Credo Technology Group by 68.4% in the 1st quarter. Quantinno Capital Management LP now owns 34,124 shares of the company’s stock valued at $3,203,000 after acquiring an additional 13,859 shares in the last quarter. Finally, Estuary Capital Management LP grew its position in Credo Technology Group by 87.4% in the 1st quarter. Estuary Capital Management LP now owns 412,227 shares of the company’s stock valued at $38,696,000 after acquiring an additional 192,218 shares in 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. 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.