Shares of Credo Technology Group Holding Ltd. (NASDAQ: CRDO) experienced a notable increase of 6.4% during midday trading on Wednesday, with prices reaching a high of $166.98 before closing at $164.01. A total of 5,179,042 shares changed hands, reflecting a decline of around 5% from the average trading volume of 5,448,879 shares. This surge follows a previous closing price of $154.18.
The uptick in share price comes on the heels of several favorable analyst ratings. On September 28, Wall Street Zen upgraded Credo Technology Group from a “hold” rating to a “buy” rating. Following closely, Stifel Nicolaus established a target price of $160.00 for the company’s shares on October 1. Meanwhile, William Blair began its coverage of the stock on September 18, labeling it as “outperform.” In contrast, Zacks Research downgraded the stock from “strong buy” to “hold” on November 4, and Weiss Ratings reaffirmed a “hold (c)” rating on October 8. Overall, one analyst has assigned a “Strong Buy” rating, while thirteen others have given a “Buy” rating, and two have issued a “Hold” rating, leading to an average rating of “Moderate Buy” and an average price target of $140.36, according to data from MarketBeat.
Recent Earnings and Future Guidance
Credo Technology Group reported its most recent earnings results on September 3. The company announced earnings per share of $0.34, falling short of the consensus estimate of $0.36 by $0.02. However, revenue for the quarter reached $223.07 million, significantly exceeding analysts’ expectations of $190.63 million. This figure represents a remarkable 273.6% increase compared to the same quarter last year, when the company reported earnings of just $0.04 per share. For the upcoming second quarter of 2026, Credo Technology has set guidance at $0.13 EPS, indicating cautious optimism among analysts regarding future growth.
Insider Transactions and Institutional Holdings
In related news, insider trading activity has been notable. On October 8, Daniel W. Fleming, the Chief Financial Officer, sold 112,580 shares at an average price of $138.20, totaling approximately $15.56 million. Post-sale, Fleming retains 458,678 shares valued at around $63.39 million, which marks a 19.71% decrease in his ownership.
Similarly, Yat Tung Lam, the Chief Operating Officer, sold 80,000 shares on October 1, garnering $11.48 million from the transaction. Lam now owns 920,000 shares valued at about $132.05 million, representing an 8.00% decrease in his stake. Over the last ninety days, insiders have sold a total of 973,161 shares, worth approximately $149 million, leaving insiders with 11.84% of the company’s stock.
Institutional investors have also been active in adjusting their positions in Credo Technology Group. Savant Capital LLC increased its holdings by 0.7% during the third quarter, owning 9,914 shares valued at $1.44 million. Similarly, Northwestern Mutual Wealth Management Co. raised its position by 16.2%, owning 552 shares worth $80,000 after adding 77 shares. Other notable investors include Illinois Municipal Retirement Fund, Versant Capital Management Inc., and CIBC Private Wealth Group LLC, all of which have increased their stakes during this period. Overall, institutional investors now own 80.46% of Credo Technology Group’s stock.
Credo Technology Group specializes in high-speed connectivity solutions for optical and electrical Ethernet applications, operating in the United States, Taiwan, Mainland China, Hong Kong, and other international markets. Its product offerings include active electrical cables, optical digital signal processors, and integrated circuits, addressing a growing demand in the technology sector.
As the trading landscape evolves, market participants will be keen to observe how these developments affect Credo Technology Group’s future performance.
