Credo Technology Group (NASDAQ:CRDO) Stock Falls 2.8% on Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price fell 2.8% on Monday after an insider sold shares in the company. The stock traded as low as $206.06 and last traded at $212.48. Approximately 7,635,522 shares changed hands during trading, an increase of 1% from the average session volume of 7,535,044 shares. The stock had previously closed at $218.64.

Specifically, insider James Laufman sold 5,000 shares of Credo Technology Group stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $205.00, for a total value of $1,025,000.00. Following the completion of the sale, the insider owned 164,223 shares of the company’s stock, valued at approximately $33,665,715. This trade represents a 2.95% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Yat Lam sold 50,000 shares of the company’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $205.22, for a total value of $10,261,000.00. Following the transaction, the chief operating officer directly owned 2,254,169 shares in the company, valued at approximately $462,600,562.18. The trade was a 2.17% 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. In related news, CTO Chi Cheng sold 27,500 shares of Credo Technology Group stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $193.93, for a total value of $5,333,075.00. Following the completion of the sale, the chief technology officer directly owned 5,662,397 shares in the company, valued at approximately $1,098,108,650.21. This trade represents a 0.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

CRDO has been the topic of a number of recent analyst reports. Stifel Nicolaus dropped their price target on shares of Credo Technology Group from $350.00 to $310.00 and set a “buy” rating on the stock in a report on Monday. Susquehanna raised their target price on shares of Credo Technology Group from $235.00 to $250.00 and gave the stock a “positive” rating in a report on Tuesday, July 21st. Rosenblatt Securities boosted their target price on shares of Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a research note on Wednesday, September 2nd. Zacks Research downgraded Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. Finally, Bank of America cut their price objective 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 given a Hold rating to the stock. Based on data from MarketBeat.com, Credo Technology Group has a consensus rating of “Moderate Buy” and a consensus 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 has delivered seven consecutive quarters of triple-digit revenue growth, while its latest quarterly revenue increased 114.7% year over year to $479 million and exceeded analyst expectations. The company’s AI-related demand, strong margins and shift from copper to optical connectivity remain important long-term growth catalysts. Credo Has One Number That Could Change the Stock’s Long-Term Story The Transformation From Copper To Optical Is A Major Opportunity Still Under-Appreciated
• Positive Sentiment: Stifel Nicolaus maintained a “buy” rating and set a $310 price target, indicating substantial potential upside based on its expectations for Credo’s growth. However, the target was reduced from $350, tempering the bullish signal. Credo Technology Group Given New $310 Price Target at Stifel Nicolaus
• Neutral Sentiment: Analysts and market commentators continue to debate whether Credo’s premium valuation is justified. AI-driven demand and the expanding optics portfolio support the outlook, but execution risks and already-elevated expectations could increase volatility. Credo Stock at a Premium Valuation: Opportunity or Stay Cautious?
• Negative Sentiment: Insider James Laufman sold 5,000 shares for approximately $1.03 million, reducing his direct ownership by 2.95%. Although he still retains a sizable stake, the transaction likely added near-term selling pressure and investor caution. James Laufman Insider Transactions

Credo Technology Group Price Performance

The company has a market capitalization of $39.94 billion, a P/E ratio of 75.62, a price-to-earnings-growth ratio of 0.87 and a beta of 3.25. The firm’s 50-day moving average is $207.30 and its 200-day moving average is $199.35.

Credo Technology Group (NASDAQ:CRDO) last released its quarterly 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 business had revenue of $479.00 million for the quarter, compared to the consensus estimate of $473.30 million. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The company’s quarterly revenue was up 114.7% on a year-over-year basis. During the same period last year, the firm earned $0.52 earnings per share. As a group, analysts forecast that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Hedge Funds Weigh In On Credo Technology Group

A number of institutional investors have recently bought and sold shares of the stock. Polaris Financial Partners bought a new position in shares of Credo Technology Group in the third quarter worth about $681,000. GoalVest Advisory LLC lifted its position in shares of Credo Technology Group by 49,226.5% during the 3rd quarter. GoalVest Advisory LLC now owns 24,170 shares of the company’s stock valued at $4,708,000 after buying an additional 24,121 shares in the last quarter. Burkett Financial Services LLC bought a new position in shares of Credo Technology Group during the 3rd quarter valued at approximately $33,000. QRG Capital Management Inc. grew its stake in shares of Credo Technology Group by 20.8% during the 2nd quarter. QRG Capital Management Inc. now owns 6,527 shares of the company’s stock valued at $1,774,000 after acquiring an additional 1,125 shares during the period. Finally, Envestnet Portfolio Solutions Inc. purchased a new stake in Credo Technology Group in the 2nd quarter worth approximately $548,000. 80.46% of the stock is owned by institutional investors.

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.