Credo Technology Group (NASDAQ:CRDO) Stock Price Down 12.9% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price was down 12.9% on Wednesday . The stock traded as low as $95.07 and last traded at $96.95. Approximately 14,302,743 shares traded hands during mid-day trading, an increase of 113% from the average daily volume of 6,707,097 shares. The stock had previously closed at $111.31.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Company product and partnership news reinforces Credo’s AI/data‑center growth narrative: Credo is promoting its Blue Heron 224G retimer (3nm, sampling now; production target ~Q3 2026) and announced deals with Blue Heron and 3M that deepen its role in AI interconnects — a potential multi‑year revenue/margin tail for the company. Credo Technology Deepens AI Role With Blue Heron And 3M Deal
• Positive Sentiment: Several bullish writeups/upgrades highlight long‑term upside and say current pullback is an entry — including a Seeking Alpha author saying current levels look attractive given accelerating revenue and margin expansion. These narratives may support buying interest from growth investors. Credo Stock: Why I’m Finally Buying In
• Neutral Sentiment: Major sell‑side coverage is mixed: Bank of America and other firms have bullish long‑term views on Credo as an AI‑connectivity beneficiary, and some research pieces outline a strong bull case; these views are supportive but won’t necessarily offset short‑term flows. BofA sees Credo as long-term beneficiary
• Neutral Sentiment: Reported short‑interest figures appear anomalous/rounded to zero and are not meaningfully explanatory for today’s move — so short covering or a short‑squeeze is likely not the driver. (Data flagged as inconsistent.)
• Negative Sentiment: Analyst downgrade: Zacks cut CRDO from “strong‑buy” to “hold,” a near‑term negative for sentiment and a likely contributor to selling pressure. Zacks downgrade
• Negative Sentiment: Seeking Alpha also published a downgrade‑styled take on AI/copper dynamics for Credo that likely hurt sentiment among momentum traders. AI And Credo Technology’s Copper Cables Are Breaking Up (Rating Downgrade)
• Negative Sentiment: Insider selling — multiple disclosures show recent sales by senior insiders (CEO‑related blocks, CTO sale of 27,500 shares, director sale of 1,875 shares). High‑profile insider sales on a richly valued stock tend to weigh on sentiment and amplify downside on heavy trading days. Pantas Sutardja Sells 1,875 Shares Chi Fung Cheng Sells 27,500 Shares

Analysts Set New Price Targets

Several analysts have recently commented on CRDO shares. JPMorgan Chase & Co. started coverage on shares of Credo Technology Group in a research report on Friday, October 17th. They set an “overweight” rating and a $165.00 price target on the stock. Wolfe Research set a $240.00 target price on Credo Technology Group in a research report on Tuesday, December 2nd. TD Cowen reaffirmed a “buy” rating on shares of Credo Technology Group in a research note on Tuesday, December 2nd. New Street Research set a $240.00 price objective on shares of Credo Technology Group in a report on Tuesday, December 2nd. Finally, Bank of America upped their target price on shares of Credo Technology Group from $165.00 to $240.00 and gave the company a “buy” rating in a research report on Tuesday, December 2nd. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Credo Technology Group presently has an average rating of “Moderate Buy” and an average target price of $216.54.

Credo Technology Group Trading Down 12.9%

The company has a fifty day moving average of $149.03 and a 200-day moving average of $142.40. The stock has a market cap of $17.51 billion, a PE ratio of 85.04 and a beta of 2.65.

Credo Technology Group (NASDAQ:CRDO) last released its earnings results on Monday, December 1st. The company reported $0.67 earnings per share for the quarter, beating the consensus estimate of $0.49 by $0.18. The company had revenue of $268.03 million during the quarter, compared to the consensus estimate of $234.99 million. Credo Technology Group had a return on equity of 25.28% and a net margin of 26.63%.Credo Technology Group’s revenue was up 272.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.07 EPS. As a group, research analysts anticipate that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Daniel W. Fleming sold 3,902 shares of the company’s stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $140.15, for a total transaction of $546,865.30. Following the sale, the chief financial officer owned 446,178 shares of the company’s stock, valued at approximately $62,531,846.70. This represents a 0.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Pantas Sutardja sold 1,875 shares of the stock in a transaction on Friday, January 30th. The shares were sold at an average price of $128.67, for a total value of $241,256.25. Following the completion of the sale, the director owned 5,892,034 shares in the company, valued at approximately $758,128,014.78. The trade was a 0.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 917,976 shares of company stock worth $136,567,647 over the last 90 days. Company insiders own 11.84% of the company’s stock.

Institutional Investors Weigh In On Credo Technology Group

Several large investors have recently bought and sold shares of the stock. NewEdge Advisors LLC boosted its stake in shares of Credo Technology Group by 128.4% in the 1st quarter. NewEdge Advisors LLC now owns 7,066 shares of the company’s stock valued at $284,000 after buying an additional 3,972 shares during the period. Goldman Sachs Group Inc. lifted its stake in Credo Technology Group by 63.0% in the first quarter. Goldman Sachs Group Inc. now owns 1,524,788 shares of the company’s stock worth $61,235,000 after acquiring an additional 589,151 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Credo Technology Group by 2.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 310,763 shares of the company’s stock worth $12,480,000 after acquiring an additional 7,107 shares in the last quarter. Janney Montgomery Scott LLC grew its holdings in Credo Technology Group by 144.2% during the 2nd quarter. Janney Montgomery Scott LLC now owns 16,413 shares of the company’s stock worth $1,520,000 after acquiring an additional 9,692 shares in the last quarter. Finally, Truist Financial Corp purchased a new stake in shares of Credo Technology Group in the 2nd quarter valued at approximately $328,000. Hedge funds and other 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.