Credo Technology's 3.84% Drop and $0.63 Billion Volume Rank 219th in Daily Liquidity Amid Insider Sales vs. Analyst Optimism

Credo Technology (CRDO) fell 3.84% on July 31, 2025, with a trading volume of $0.63 billion, ranking 219th in daily liquidity. The stock’s recent performance reflects mixed signals from insider activity and analyst sentiment.

Chi Fung Cheng, the company’s CTO, sold 55,000 shares on July 28 for $5.82 million, reducing his stake by 0.76% to 7.16 million shares valued at $758 million. This follows multiple sales in June and July, including transactions at prices ranging from $72.53 to $105.80. Insider selling has raised questions about management’s confidence in near-term prospects despite the stock trading near its 12-month high of $116.60.

Analysts remain optimistic, maintaining a “Buy” consensus with price targets between $85 and $115. Institutional investors also adjusted holdings, with Forum Financial and Ethic Inc. increasing stakes in Q2. Cullen Frost Bankers Inc. boosted its position by 278.4%, while others initiated new positions, indicating ongoing institutional support.

Credo’s insider ownership of 11.7% places it among top growth companies with high insider stakes, a metric often viewed as a positive alignment with shareholder interests. However, the recent insider sales suggest a cautious stance amid mixed market conditions.

The strategy of purchasing top 500 stocks by daily trading volume and holding for one day yielded a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the role of liquidity-driven momentum in short-term gains, though such strategies remain sensitive to evolving market dynamics.