Credo Technology Group (NASDAQ:CRDO) Stock Price Down 5.4% Following Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares were down 5.4% on Friday following insider selling activity. The company traded as low as $248.88 and last traded at $250.48. Approximately 1,551,283 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 7,458,781 shares. The stock had previously closed at $264.76.

Specifically, 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 value of $259,974.00. Following the completion of the transaction, the director owned 7,017 shares of the company’s stock, valued at approximately $1,658,397.78. This represents a 13.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $259.53, for a total transaction of $7,137,075.00. Following the sale, the chief technology officer owned 5,992,370 shares in the company, valued at approximately $1,555,199,786.10. This represents a 0.46% 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. In related news, Director Sylvia Acevedo sold 2,208 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $211.00, for a total value of $465,888.00. Following the completion of the transaction, the director owned 16,337 shares in the company, valued at $3,447,107. This represents a 11.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. TD Cowen boosted their price target on shares of Credo Technology Group from $240.00 to $260.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. Bank of America raised their price objective on shares of Credo Technology Group from $210.00 to $252.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Zacks Research raised Credo Technology Group from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 19th. The Goldman Sachs Group restated a “buy” rating and issued a $250.00 target price on shares of Credo Technology Group in a research report on Tuesday, June 2nd. Finally, Craig Hallum reiterated a “buy” rating and set a $200.00 price target on shares of Credo Technology Group in a research report on Tuesday, March 3rd. One equities research 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 company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $248.41.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Credo completed its acquisition of DustPhotonics, strengthening its optical connectivity and silicon photonics capabilities for AI and cloud networking demand. Credo Technology (CRDO) Completes Acquisition of DustPhotonics to Expand Optical Connectivity Portfolio
• Positive Sentiment: Multiple recent articles and analyst notes highlighted Credo as a top-ranked AI-related growth stock, reinforcing investor optimism around continued earnings momentum. 3 Top Ranked Stocks Investors Can Buy Right Now
• Positive Sentiment: Analysts have raised or reaffirmed higher price targets following Credo’s earnings beat and strong revenue growth, signaling confidence in the company’s outlook. Can Credo Technology Group (CRDO) Run Higher on Rising Earnings Estimates?
• Neutral Sentiment: Insider selling by Director Fariba Danesh and CTO Chi Fung Cheng may create some caution, but the CTO’s sale was tied to tax withholding on vested equity awards and does not appear to indicate a fundamental issue.
• Neutral Sentiment: Some coverage continues to flag customer concentration risk, though management is working to diversify revenue across more NeoCloud and broader customers. Credo’s Diversification Push: Can It Cut Customer Concentration Risk?

Credo Technology Group Stock Down 5.0%

The firm has a market capitalization of $46.40 billion, a price-to-earnings ratio of 100.44, a price-to-earnings-growth ratio of 1.25 and a beta of 3.22. The firm’s 50 day moving average is $181.36 and its 200 day moving average is $150.09.

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

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds and other institutional investors have recently modified their holdings of CRDO. Corient Private Wealth LLC lifted its stake in Credo Technology Group by 239,024.5% during the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company’s stock valued at $517,835,000 after buying an additional 3,597,318 shares in the last quarter. Amundi increased its position in shares of Credo Technology Group by 28,478.2% in the fourth quarter. Amundi now owns 1,559,796 shares of the company’s stock worth $224,439,000 after acquiring an additional 1,554,338 shares in the last quarter. Janus Henderson Group PLC raised its holdings in shares of Credo Technology Group by 841.9% during the fourth quarter. Janus Henderson Group PLC now owns 1,591,348 shares of the company’s stock valued at $228,979,000 after acquiring an additional 1,422,391 shares during the period. Bank of America Corp DE lifted its position in shares of Credo Technology Group by 161.5% in the 3rd quarter. Bank of America Corp DE now owns 2,278,073 shares of the company’s stock valued at $331,710,000 after acquiring an additional 1,406,752 shares in the last quarter. Finally, Rafferty Asset Management LLC acquired a new position in Credo Technology Group in the 3rd quarter worth approximately $183,553,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

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.