Credo Technology Group (NASDAQ:CRDO) Shares Down 1.3% on Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares dropped 1.3% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $185.20 and last traded at $198.31. 10,812,420 shares changed hands during trading, an increase of 43% from the average session volume of 7,558,714 shares. The stock had previously closed at $200.84.

Specifically, CFO Daniel Fleming sold 7,580 shares of the stock in a transaction that occurred on Thursday, October 8th. The shares were sold at an average price of $212.91, for a total value of $1,613,857.80. Following the sale, the chief financial officer directly owned 492,208 shares in the company, valued at $104,796,005.28. This represents a 1.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 firm’s stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $221.48, for a total transaction of $6,090,700.00. Following the transaction, the chief technology officer directly owned 5,634,897 shares of the company’s stock, valued at approximately $1,248,016,987.56. This trade represents a 0.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 Upgrades and Downgrades

CRDO has been the topic of a number of recent research reports. Zacks Research lowered Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. Bank of America cut their price target 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. Rosenblatt Securities upped their price objective on Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a research report on Wednesday, September 2nd. TD Cowen increased their price objective on Credo Technology Group from $260.00 to $300.00 and gave the company a “buy” rating in a research note on Tuesday, August 18th. Finally, Wall Street Zen cut Credo Technology Group from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $262.67.

Credo Technology Group News Roundup

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

• Positive Sentiment: Credo introduced a 1.6T ZeroFlap Active Light Cable, a row-scale, wide-parallel optical interconnect designed for AI data centers. The company says the product can reduce power consumption, improve reliability and extend reach, potentially supporting future revenue growth as AI clusters become larger and more bandwidth-intensive. Credo Unveils 1.6T ZeroFlap Active Light Cable
• Positive Sentiment: The company launched a Short-Reach Micro-Emitter Optics, or SRMO, standardization effort within the Open Compute Project. The workstream is targeting specifications for AI data-center scale-up and scale-out applications, giving Credo an opportunity to influence an emerging industry standard and create longer-term demand for its optical connectivity products. Credo Launches SRMO Standardization
• Positive Sentiment: Credo also described work using AMD programmable-logic-based AI accelerators to address memory-bandwidth constraints, reinforcing its positioning as a supplier of connectivity solutions for increasingly demanding AI infrastructure. Credo Breaks the Memory Wall
• Neutral Sentiment: Investor commentary remains bullish on Credo’s growth opportunity, noting that its expansion has outpaced Marvell and Astera Labs. However, the comparison also underscores that expectations are elevated before the next earnings report. Credo Technology’s Price Targets Reveal the Size of Its Opportunity
• Negative Sentiment: Credo trades at a demanding valuation, with a high earnings multiple and substantial prior gains reflected in the share price. That valuation leaves the stock vulnerable to profit-taking or a pullback when investors do not receive a fresh earnings or guidance catalyst, even as the company’s product announcements remain encouraging.

Credo Technology Group Price Performance

The firm has a market cap of $37.27 billion, a PE ratio of 70.57, a P/E/G ratio of 0.86 and a beta of 3.25. The stock has a 50-day moving average price of $208.78 and a 200 day moving average price of $203.24.

Credo Technology Group (NASDAQ:CRDO) last released its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.03. The firm had revenue of $479.00 million for 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 firm’s revenue for the quarter was up 114.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.52 earnings per share. As a group, equities research analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of CRDO. Reflection Asset Management acquired a new position in shares of Credo Technology Group in the 4th quarter worth approximately $25,000. Orion Capital Management LLC acquired a new position in Credo Technology Group in the second quarter worth $27,000. AlphaCentric Advisors LLC acquired a new position in Credo Technology Group in the first quarter worth $33,000. Burkett Financial Services LLC bought a new stake in Credo Technology Group during the third quarter valued at $33,000. Finally, Western Wealth Management LLC acquired a new stake in shares of Credo Technology Group during the first quarter worth $38,000. 80.46% of the stock is currently owned by hedge funds and other institutional investors.

About Credo Technology Group

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.