Credo Technology Group (NASDAQ:CRDO) Stock Price Up 3.9% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price was up 3.9% during trading on Friday . The company traded as high as $172.05 and last traded at $170.57. Approximately 10,578,357 shares traded hands during trading, an increase of 43% from the average daily volume of 7,402,103 shares. The stock had previously closed at $164.17.

Key Credo Technology Group News

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

• Positive Sentiment: Credo reported revenue of $479 million, up 115% year over year, and adjusted EPS of $1.20, both above analysts’ estimates. Management also expects fiscal 2027 revenue growth of more than 85%, with optical revenue exceeding $600 million. Why I Doubled Down On Credo
• Positive Sentiment: Bullish commentary says the optical business should become a second growth engine in the second half of fiscal 2027. The DustPhotonics acquisition expands Credo’s exposure to silicon photonics, 800G, 1.6T and co-packaged optical technologies. Credo And the Illusion of Its Q1 Problems
• Positive Sentiment: Stifel maintained a Buy view, while Rosenblatt raised its price target to $235. Other analysts continue to see demand from AI data centers, hyperscalers, neocloud providers and the transition to 1.6T networking as drivers of Credo’s active electrical cable growth. Credo Receives a Buy from Stifel Nicolaus
• Neutral Sentiment: Credo’s valuation has compressed significantly following the selloff, prompting some investors to view the decline as a buying opportunity. However, expectations remain heavily dependent on successful optical-product execution and sustained hyperscaler capital spending. Credo: The Market Is In Disbelief
• Negative Sentiment: The primary pressure on CRDO remains concern over shrinking gross margins, rising operating expenses and the cost structure of recent acquisitions. Investors are questioning whether optical revenue can ramp quickly enough to offset potential margin compression. Did the Market Overreact?
• Negative Sentiment: Bears also cite customer concentration, with more than 60% of revenue tied to hyperscalers, competitive threats from Marvell, insider selling, substantial stock-based compensation and goodwill representing a large portion of the balance sheet. Bank of America lowered its price target to $275, adding to the cautious tone. Credo: This Is Not a Buying Opportunity

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Stifel Nicolaus lifted their target price on Credo Technology Group from $250.00 to $350.00 and gave the company a “buy” rating in a research report on Monday, June 22nd. Roth Capital raised their price target on Credo Technology Group from $200.00 to $300.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Zacks Research lowered Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. The Goldman Sachs Group reiterated a “buy” rating and set a $250.00 price objective on shares of Credo Technology Group in a research note on Tuesday, June 2nd. Finally, Susquehanna increased their price objective on Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $267.39.

Credo Technology Group Stock Performance

The company has a market capitalization of $32.06 billion, a P/E ratio of 60.70, a PEG ratio of 0.75 and a beta of 3.22. The stock’s fifty day moving average price is $231.67 and its 200-day moving average price is $189.13.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.03. The business had revenue of $479.00 million during the quarter, compared to analysts’ expectations of $473.30 million. Credo Technology Group had a return on equity of 32.91% and a net margin of 33.83%.Credo Technology Group’s quarterly revenue was up 114.7% on a year-over-year basis. During the same quarter last year, the company posted $0.52 earnings per share. On average, research analysts predict that Credo Technology Group Holding Ltd. will post 4.89 EPS for the current fiscal year.

Insider Transactions at Credo Technology Group

In other Credo Technology Group news, COO Yat Lam sold 55,441 shares of the firm’s stock in a transaction on Friday, July 31st. The stock was sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the sale, the chief operating officer owned 2,529,169 shares of the company’s stock, valued at $538,763,580.38. This trade represents a 2.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 40,000 shares of Credo Technology Group stock in a transaction on Thursday, June 11th. The stock was 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 of the company’s stock, valued at approximately $125,207,276.04. This trade represents a 7.38% decrease in their ownership of the stock. 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. In the last three months, insiders sold 377,884 shares of company stock worth $88,559,765. 9.06% of the stock is owned by company insiders.

Institutional Trading of Credo Technology Group

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Reflection Asset Management bought a new position in Credo Technology Group in the 4th quarter valued at about $25,000. Acumen Wealth Advisors LLC acquired a new stake in Credo Technology Group during the fourth quarter worth approximately $25,000. Orion Capital Management LLC bought a new stake in shares of Credo Technology Group during the second quarter worth approximately $27,000. AlphaCentric Advisors LLC acquired a new position in shares of Credo Technology Group in the first quarter valued at approximately $33,000. Finally, Van ECK Associates Corp acquired a new position in shares of Credo Technology Group in the fourth quarter valued at approximately $37,000. Institutional investors own 80.46% of the company’s stock.

Credo Technology Group Company Profile

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.