Credo Technology Group (NASDAQ:CRDO) Shares Down 7.8% After Insider Selling

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price traded down 7.8% on Tuesday following insider selling activity. The stock traded as low as $238.97 and last traded at $239.18. 7,522,726 shares traded hands during trading, an increase of 0% from the average session volume of 7,514,819 shares. The stock had previously closed at $259.41.

Specifically, CFO Daniel W. Fleming sold 40,000 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $249.48, for a total transaction of $9,979,200.00. Following the transaction, the chief financial officer directly owned 501,873 shares in the company, valued at $125,207,276.04. This represents a 7.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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. Also, Director Fariba Danesh sold 1,100 shares of the stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $236.34, for a total transaction of $259,974.00. Following the transaction, the director owned 7,017 shares in the company, valued at $1,658,397.78. This trade represents a 13.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In other Credo Technology Group news, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction on 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 transaction, the chief technology officer directly owned 5,992,370 shares in the company, valued at $1,555,199,786.10. This represents a 0.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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

A number of research analysts have commented on the stock. TD Cowen increased their price objective on shares of Credo Technology Group from $240.00 to $260.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. The Goldman Sachs Group restated a “buy” rating and issued a $250.00 price target on shares of Credo Technology Group in a research report on Tuesday, June 2nd. Susquehanna raised their price target on shares of Credo Technology Group from $200.00 to $235.00 and gave the stock a “positive” rating in a research report on Tuesday, June 2nd. Weiss Ratings upgraded shares of Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th. Finally, Jefferies Financial Group raised their price target on shares of Credo Technology Group from $225.00 to $270.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Credo Technology Group currently has a consensus rating of “Moderate Buy” and an average price target of $248.41.

Credo Technology Group News Summary

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

• Positive Sentiment: Credo’s latest quarterly results beat expectations, with revenue and EPS both topping estimates and growth remaining very strong year over year, reinforcing the view that AI-related demand is still accelerating.
• Positive Sentiment: Multiple commentaries point to Credo’s expanding opportunity in AI interconnect, optical products, and scale-up networking, which supports the stock’s bull case and raises hopes for continued margin expansion.
• Positive Sentiment: Mizuho reiterated an Outperform rating and a $290 price target, adding to the bullish analyst backdrop and helping validate the stock’s elevated valuation.
• Positive Sentiment: New writeups frame CRDO as one of the standout semiconductor momentum names, with some pieces debating whether it can reach $300 by year-end, underscoring strong investor enthusiasm.
• Neutral Sentiment: CFO Daniel W. Fleming sold 40,000 shares under a pre-arranged 10b5-1 plan for tax withholding purposes related to equity vesting; the filing is notable but does not necessarily signal a change in fundamentals. SEC Form 4 filing
• Negative Sentiment: After a huge run-up, some analysts and commentators are warning that CRDO’s valuation is becoming stretched, which could leave the stock vulnerable if future earnings, customer ramps, or margin gains disappoint.

Credo Technology Group Stock Performance

The stock’s fifty day moving average is $187.62 and its two-hundred day moving average is $151.53. The firm has a market cap of $44.12 billion, a price-to-earnings ratio of 96.44, a PEG ratio of 1.32 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO) last released its quarterly earnings data on Monday, June 1st. The company reported $1.16 earnings per share for the quarter, topping analysts’ consensus estimates of $1.02 by $0.14. The business had revenue of $437.00 million for the quarter, compared to analysts’ expectations of $431.80 million. Credo Technology Group had a net margin of 35.37% and a return on equity of 36.99%. The company’s revenue for the quarter was up 157.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.20 EPS. 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

Several large investors have recently bought and sold shares of CRDO. NewEdge Advisors LLC increased its stake in Credo Technology Group by 128.4% during the 1st quarter. NewEdge Advisors LLC now owns 7,066 shares of the company’s stock valued at $284,000 after buying an additional 3,972 shares during the period. Goldman Sachs Group Inc. increased its stake in Credo Technology Group by 63.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company’s stock valued at $61,235,000 after buying an additional 589,151 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Credo Technology Group by 2.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company’s stock valued at $12,480,000 after buying an additional 7,107 shares during the period. CW Advisors LLC acquired a new position in Credo Technology Group during the 2nd quarter valued at about $288,000. Finally, EverSource Wealth Advisors LLC increased its stake in Credo Technology Group by 198.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company’s stock valued at $46,000 after buying an additional 333 shares during the period. Institutional investors and hedge funds own 80.46% of the company’s stock.

About Credo Technology Group

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.