Credo Technology Group Holding Ltd. (NASDAQ:CRDO – Get Free Report) rose 7.9% during mid-day trading on Thursday. The stock traded as high as $211.05 and last traded at $210.17. 9,351,566 shares were traded during mid-day trading, an increase of 25% from the average session volume of 7,507,052 shares. The stock had previously closed at $194.79.
More Credo Technology Group News
Here are the key news stories impacting Credo Technology Group this week:
- Positive Sentiment: Credo’s investment case is being supported by robust AI spending. Analysts note that data-center investment is expanding beyond computing power to the connectivity, cabling and optical systems needed to link large AI clusters. The company recently reported triple-digit year-over-year revenue growth, strengthening expectations for continued demand. AI Spending Is Entering Its Next Phase. This Stock Could Benefit Most
- Positive Sentiment: Recent coverage highlights Credo’s strong operating momentum, including quarterly revenue of $479 million, up 114.7% from the prior year, and earnings of $1.20 per share versus the $1.17 consensus estimate. Its optical-connectivity products and relationships with major hyperscalers are viewed as potential drivers of additional growth. Credo: Opportunity Is Knocking
- Positive Sentiment: Momentum-focused research remains constructive. Credo has risen 17.9% since its latest earnings report, while sell-side analysts maintain a “Moderate Buy” consensus and an average price target of $264.89. Commentary also suggests the stock could eventually challenge prior highs if earnings estimates continue to improve. Credo Technology Group Stock Rated Moderate Buy
- Neutral Sentiment: Coverage comparing Credo with Arm presents the stock as a higher-growth but potentially higher-risk AI infrastructure investment. Credo’s opportunity is tied to fast-growing data-center connectivity demand, while its elevated valuation and high volatility remain important considerations. Arm vs. Credo Technology Group
- Negative Sentiment: Several executives have sold shares, including CTO Chi Cheng’s sale of 27,500 shares and COO Yat Tung Lam’s sale of 50,000 shares. The transactions were conducted under pre-arranged Rule 10b5-1 plans, and both executives retained substantial positions, which limits—but does not eliminate—the negative signal from insider selling. Credo Technology Group Insider Selling
Wall Street Analyst Weigh In
A number of brokerages have commented on CRDO. TD Cowen lifted their price objective on Credo Technology Group from $260.00 to $300.00 and gave the stock a “buy” rating in a report on Tuesday, August 18th. Mizuho cut their target price on shares of Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating for the company in a research note on Monday, September 21st. Wall Street Zen downgraded shares of Credo Technology Group from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Stifel Nicolaus increased their price objective 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. Finally, Rosenblatt Securities boosted their price target on shares of Credo Technology Group from $215.00 to $235.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 2nd. One 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 company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $264.89.
Credo Technology Group Stock Up 7.9%
The company’s fifty day moving average price is $207.63 and its two-hundred day moving average price is $197.22. The company has a market cap of $39.50 billion, a price-to-earnings ratio of 74.79, a PEG ratio of 0.77 and a beta of 3.22.
Credo Technology Group (NASDAQ:CRDO – Get Free Report) last issued 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. The company had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%.The company’s quarterly revenue was up 114.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.52 earnings per share. On average, equities research analysts predict that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.
Insider Activity at Credo Technology Group
In related news, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction dated 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 completion of the sale, the chief technology officer directly owned 5,799,870 shares in the company, valued at approximately $1,192,105,279.80. This trade represents a 0.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 55,441 shares of the firm’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $213.02, for a total value of $11,810,041.82. Following the completion of the sale, the chief operating officer directly owned 2,529,169 shares of the company’s stock, valued at approximately $538,763,580.38. The trade was a 2.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 384,746 shares of company stock worth $79,163,859 in the last ninety days. Insiders own 9.06% of the company’s stock.
Institutional Trading of Credo Technology Group
Several hedge funds and other institutional investors have recently modified their holdings of CRDO. QRG Capital Management Inc. grew its position in shares of Credo Technology Group by 20.8% in the second quarter. QRG Capital Management Inc. now owns 6,527 shares of the company’s stock valued at $1,774,000 after purchasing an additional 1,125 shares during the last quarter. Envestnet Portfolio Solutions Inc. bought a new position in Credo Technology Group in the 2nd quarter valued at about $548,000. Envestnet Asset Management Inc. raised its position in Credo Technology Group by 14.6% during the second quarter. Envestnet Asset Management Inc. now owns 174,376 shares of the company’s stock valued at $47,421,000 after purchasing an additional 22,181 shares in the last quarter. Sequoia Financial Advisors LLC lifted its position in shares of Credo Technology Group by 19.0% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 6,659 shares of the company’s stock worth $1,811,000 after buying an additional 1,063 shares during the last quarter. Finally, IPG Investment Advisors LLC acquired a new stake in Credo Technology Group in the second quarter valued at about $3,078,000. 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 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.
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