Credo Technology Group (NASDAQ:CRDO) Trading Up 2.8% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) rose 2.8% on Tuesday . The company traded as high as $194.00 and last traded at $192.56. Approximately 8,145,363 shares traded hands during mid-day trading, an increase of 9% from the average session volume of 7,494,017 shares. The stock had previously closed at $187.27.

More Credo Technology Group News

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

• Positive Sentiment: Credo announced that its Toucan retimer achieved PCI-SIG 6.x compliance. The certification supports interoperability with the latest PCI Express technology and could improve the product’s positioning in AI servers, data centers, and high-speed computing infrastructure. Credo Toucan retimer PCIe compliance
• Positive Sentiment: Credo’s new 1.6T ZeroFlap optical products expand its networking portfolio as management targets more than $600 million in fiscal 2027 optical revenue. The launch strengthens the company’s exposure to AI data-center connectivity spending. Credo 1.6T optics
• Positive Sentiment: Recent coverage emphasizes Credo’s triple-digit revenue growth, earnings beat, raised guidance, and expected fiscal 2027 revenue growth of more than 85%. The company’s latest reported quarter included $479 million of revenue, up 114.7% year over year, and earnings of $1.20 per share versus a $1.17 consensus estimate. Credo growth outlook
• Positive Sentiment: Credo’s addition to the FTSE All-World Index may increase institutional visibility and potentially generate demand from index-tracking funds. Credo added to FTSE All-World Index
• Neutral Sentiment: Mizuho lowered its price target from $290 to $245 but maintained an Outperform rating. The reduction signals greater valuation caution, while the rating still indicates expected upside. Mizuho price target update
• Negative Sentiment: Credo CTO Chi Fung Cheng sold 27,500 shares for approximately $4.6 million under a pre-arranged Rule 10b5-1 plan. The sale represented only 0.48% of his holdings, limiting its importance, but repeated insider selling may weigh on investor sentiment. Credo CTO stock sale
• Negative Sentiment: Bearish analyses point to CRDO’s premium valuation, customer concentration, execution risk, and substantial decline from its highs. These concerns could limit the stock’s recovery even if AI-related demand remains strong. Bearish Credo analysis

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Weiss Ratings upgraded Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday. Rosenblatt Securities boosted their target price on Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a research note on Wednesday, September 2nd. Evercore set a $292.00 price target on shares of Credo Technology Group in a research note on Wednesday, September 2nd. TD Cowen boosted their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock a “buy” rating in a research report on Tuesday, August 18th. Finally, Susquehanna increased 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. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $264.89.

Credo Technology Group Trading Up 2.8%

The company has a market capitalization of $36.19 billion, a price-to-earnings ratio of 68.53, a price-to-earnings-growth ratio of 0.70 and a beta of 3.22. The firm’s 50 day moving average price is $210.92 and its two-hundred day moving average price is $193.06.

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 28.77% 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. As a group, equities research analysts predict that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Daniel Fleming sold 7,580 shares of the stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $245.88, for a total value of $1,863,770.40. Following the sale, the chief financial officer owned 504,708 shares in the company, valued at approximately $124,097,603.04. This represents a 1.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 firm’s stock in a transaction on Monday, July 27th. The shares were sold at an average price of $205.54, for a total value of $5,652,350.00. Following the sale, the chief technology officer directly owned 5,799,870 shares of the company’s stock, valued at $1,192,105,279.80. This represents a 0.47% 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. Insiders sold a total of 302,246 shares of company stock valued at $64,700,584 over the last 90 days. 9.06% of the stock is owned by insiders.

Institutional Trading of Credo Technology Group

Several hedge funds and other institutional investors have recently modified their holdings of CRDO. Bank of America Corp DE grew its stake in Credo Technology Group by 13.7% in the 2nd quarter. Bank of America Corp DE now owns 2,182,764 shares of the company’s stock valued at $593,603,000 after buying an additional 262,479 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of Credo Technology Group by 5.0% during the fourth quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company’s stock worth $555,117,000 after purchasing an additional 184,676 shares during the period. Corient Private Wealth LLC increased its stake in shares of Credo Technology Group by 239,024.5% during the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company’s stock worth $517,835,000 after purchasing an additional 3,597,318 shares during the period. Atreides Management LP lifted its holdings in Credo Technology Group by 3.5% during the 2nd quarter. Atreides Management LP now owns 1,129,285 shares of the company’s stock worth $307,109,000 after purchasing an additional 38,052 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its holdings in Credo Technology Group by 11.2% during the 4th quarter. Goldman Sachs Group Inc. now owns 2,021,020 shares of the company’s stock worth $290,805,000 after purchasing an additional 203,462 shares during the last quarter. Institutional investors own 80.46% of the company’s stock.

About Credo Technology Group

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for the data infrastructure market. Its products are designed to help move data efficiently within and between networking, storage and computing systems, with applications in artificial intelligence, cloud computing, telecommunications and enterprise data centers.

The company’s portfolio includes serializer/deserializer (SerDes) integrated circuits, retimers, optical digital signal processors and active electrical cables.