Credo Technology Group (NASDAQ:CRDO) Shares Gap Down After Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price gapped down prior to trading on Tuesday following insider selling activity. The stock had previously closed at $200.84, but opened at $191.11. Credo Technology Group shares last traded at $189.0550, with a volume of 1,467,222 shares traded.

Specifically, CFO Daniel Fleming sold 7,580 shares of the business’s stock in a transaction dated Thursday, October 8th. The stock was sold at an average price of $212.91, for a total transaction of $1,613,857.80. Following the completion of the transaction, the chief financial officer owned 492,208 shares of the company’s stock, valued at approximately $104,796,005.28. The trade was a 1.52% decrease in their ownership of the stock. The sale was disclosed in a legal 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. Also, CTO Chi Cheng sold 27,500 shares of the stock in a transaction dated 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 completion of the transaction, the chief technology officer directly owned 5,634,897 shares of the company’s stock, valued at $1,248,016,987.56. This trade represents a 0.49% decrease in their position. 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.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on CRDO shares. Barclays raised their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a research note on Monday, July 20th. Mizuho lowered their price objective on shares of Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating for the company in a research report on Monday, September 21st. Zacks Research cut shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. Susquehanna increased 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 note on Tuesday, July 21st. Finally, Bank of America cut their target price on shares of Credo Technology Group from $340.00 to $275.00 and set a “buy” rating on the stock in a research report on Wednesday, September 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, Credo Technology Group currently has a consensus rating of “Moderate Buy” and an average 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’s latest outlook remains robust, with revenue expected at approximately $525 million to $535 million and fiscal 2027 revenue projected to increase by more than 85%. The company’s most recent quarter delivered 114.7% year-over-year revenue growth to $479 million, exceeding analyst expectations. Credo revenue outlook article
• Positive Sentiment: The company introduced its 1.6T ZeroFlap Active Light Cable for AI data centers. The product is designed to provide longer reach, lower power consumption and improved reliability, potentially expanding Credo’s addressable market as hyperscalers increase networking capacity. Credo ZeroFlap cable article
• Positive Sentiment: Credo is helping lead an Open Compute Project workstream to standardize short-reach micro-emitter optics. If approved and adopted, the effort could support future optical connectivity sales and help reduce the company’s reliance on a small number of major customers. Credo SRMO workstream article
• Neutral Sentiment: Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating, but several firms have recently reduced price targets. The stock’s premium valuation and dependence on two large customers leave limited room for execution setbacks. Credo valuation and customer concentration article
• Negative Sentiment: CRDO declined alongside AI infrastructure peers, including Astera Labs, in what appears to be sector-wide profit-taking rather than a newly reported deterioration in Credo’s operations. The decline highlights the stock’s elevated volatility and sensitivity to AI spending sentiment. Credo stock decline analysis
• Negative Sentiment: CTO Chi Cheng sold 31,290 shares, while CFO Daniel Fleming previously sold 7,580 shares; both transactions were conducted under pre-arranged Rule 10b5-1 plans. The sales were modest relative to their remaining holdings but may still weigh on sentiment.

Credo Technology Group Stock Performance

The firm has a market cap of $33.69 billion, a price-to-earnings ratio of 63.78, a PEG ratio of 0.79 and a beta of 3.25. The business has a fifty day simple moving average of $207.08 and a 200-day simple moving average of $204.49.

Credo Technology Group (NASDAQ:CRDO) last announced its quarterly 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. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%. The firm had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. During the same period last year, the firm posted $0.52 earnings per share. The business’s revenue for the quarter was up 114.7% on a year-over-year basis. On average, equities analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CRDO. California State Teachers Retirement System lifted its position in shares of Credo Technology Group by 2.2% in the 1st quarter. California State Teachers Retirement System now owns 240,886 shares of the company’s stock worth $22,612,000 after purchasing an additional 5,113 shares during the period. Corsair Capital Management L.P. bought a new stake in shares of Credo Technology Group in the 1st quarter valued at $469,000. Lazard Asset Management LLC boosted its stake in shares of 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 purchasing an additional 23,949 shares during the last quarter. Quantinno Capital Management LP boosted its stake in shares of 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 purchasing an additional 13,859 shares during the last quarter. Finally, Estuary Capital Management LP increased its position in shares of Credo Technology Group by 87.4% during the first quarter. Estuary Capital Management LP now owns 412,227 shares of the company’s stock worth $38,696,000 after buying an additional 192,218 shares during the period. Institutional investors own 80.46% of the company’s stock.

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.