Credo Technology Group (NASDAQ:CRDO) Shares Down 9.5% Following Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price fell 9.5% on Friday following insider selling activity. The company traded as low as $142.89 and last traded at $147.29. 12,595,592 shares traded hands during mid-day trading, an increase of 65% from the average daily volume of 7,614,283 shares. The stock had previously closed at $162.77.

Specifically, CTO Chi Cheng sold 27,500 shares of Credo Technology Group stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $172.62, for a total transaction of $4,747,050.00. Following the completion of the sale, the chief technology officer owned 5,579,897 shares in the company, valued at approximately $963,201,820.14. This trade represents a 0.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Brennan sold 16,666 shares of the business’s stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $174.87, for a total transaction of $2,914,383.42. Following the completion of the transaction, the chief executive officer directly owned 1,584,164 shares of the company’s stock, valued at $277,022,758.68. The trade was a 1.04% decrease in their position. 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.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. Mizuho decreased their price target on shares of Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating on the stock in a research note on Monday, September 21st. Susquehanna boosted their price objective on shares of Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a research report on Tuesday, July 21st. Barclays boosted their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a research report on Monday, July 20th. Rosenblatt Securities restated a “neutral” rating and set a $235.00 target price on shares of Credo Technology Group in a research report on Thursday, October 15th. Finally, Evercore set a $292.00 target price on shares of Credo Technology Group in a research report on Wednesday, September 2nd. One research 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’s stock. According to MarketBeat, the stock has an average 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 was upgraded to Buy after reporting record quarterly revenue of $479 million, up 115% year over year, and non-GAAP EPS of $1.20 versus the $1.17 consensus. The company maintained gross margins near 50%, raised guidance and has a strong balance sheet with self-funded growth tied to hyperscale AI data centers. Credo rating upgrade article
• Positive Sentiment: Analysts remain broadly constructive, with a “Moderate Buy” consensus and an average price target of $262.67. Credo’s planned optical-cable products, which could use about 30% less power than copper alternatives, may provide another growth engine when shipments begin in 2027.
• Neutral Sentiment: Despite the selloff, the company’s valuation remains demanding, with a price-to-earnings ratio above 50. This leaves CRDO particularly sensitive to changes in AI infrastructure spending, interest rates and expectations for future growth.
• Negative Sentiment: MaxLinear management said it is targeting 20%–30% of the 1.6-terabit active electrical cable market over the next several years, challenging Credo’s dominant position. Third-party data also points to limited near-term adoption of 1.6T cables, raising concerns about the pace of Credo’s next growth phase. Credo competition and 1.6T adoption article
• Negative Sentiment: CEO William Brennan sold 16,666 shares for about $2.9 million, and CTO Chi Fung Cheng sold 27,500 shares for about $4.7 million. Both sales were made under pre-arranged Rule 10b5-1 plans and represent small ownership reductions, but repeated insider selling may weigh on sentiment. Credo insider sale filing

Credo Technology Group Trading Down 9.5%

The firm has a market capitalization of $27.68 billion, a PE ratio of 52.42, a price-to-earnings-growth ratio of 0.73 and a beta of 3.25. The firm has a 50-day moving average of $197.79 and a two-hundred day moving average of $207.74.

Credo Technology Group (NASDAQ:CRDO) last released its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.03. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%. The company had revenue of $479.00 million for the quarter, compared to the consensus estimate of $473.30 million. During the same period last year, the business posted $0.52 EPS. The company’s quarterly revenue was up 114.7% compared to the same quarter last year. Equities research analysts expect that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds and other institutional investors have recently made changes to their positions in CRDO. California State Teachers Retirement System boosted its holdings in Credo Technology Group by 2.2% in the first quarter. California State Teachers Retirement System now owns 240,886 shares of the company’s stock valued at $22,612,000 after purchasing an additional 5,113 shares during the last quarter. Corsair Capital Management L.P. acquired a new stake in Credo Technology Group during the 1st quarter valued at approximately $469,000. Lazard Asset Management LLC increased its holdings in Credo Technology Group by 55.6% during the 1st quarter. Lazard Asset Management LLC now owns 67,051 shares of the company’s stock worth $6,294,000 after purchasing an additional 23,949 shares during the last quarter. Quantinno Capital Management LP increased its holdings in Credo Technology Group by 68.4% during the 1st quarter. Quantinno Capital Management LP now owns 34,124 shares of the company’s stock worth $3,203,000 after purchasing an additional 13,859 shares during the last quarter. Finally, Estuary Capital Management LP raised its position in shares of 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 purchasing an additional 192,218 shares in the last quarter. Institutional investors and hedge funds own 80.46% of the company’s stock.

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.