Credo Technology Group (NASDAQ:CRDO) Trading Down 4.7% – What’s Next?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) was down 4.7% on Wednesday . The company traded as low as $119.38 and last traded at $128.40. Approximately 9,851,587 shares changed hands during mid-day trading, an increase of 35% from the average daily volume of 7,285,888 shares. The stock had previously closed at $134.72.

More Credo Technology Group News

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

• Positive Sentiment: Credo provided preliminary Q3 FY2026 revenue of $404–$408M (above prior guidance) and raised FY4Q guidance; company scheduled a conference call. This is the core fundamental catalyst behind recent buying interest. Credo Provides Preliminary Third Quarter Fiscal Year 2026 Revenue Results
• Positive Sentiment: Analyst upgrades and positive previews emphasize accelerating AI data‑center demand, a broadened connectivity platform, and lofty forward revenue targets (FY26/FY27 guidance commentary cited by analysts), supporting higher margin expectations. Credo’s Earnings Set To Ignite Rally (Preview)
• Positive Sentiment: Several bullish write-ups argue the AI-driven revenue surge has reset the valuation debate (upgrades to Buy), pointing to improving margins and lower forward EV/Revenue multiples as growth scales. That narrative underpins new long-position interest. Credo’s AI Revenue Explosion Just Reset The Valuation Debate
• Positive Sentiment: Needham reiterated a Buy and set a $220 price target, highlighting continued analyst conviction and a sizeable upside from current levels. Benzinga
• Neutral Sentiment: Market and financial outlets (Benzinga, Zacks, Schaeffer’s) note the stock’s strong post‑announcement rally and heavy volume, framing the move as an earnings-driven bounce ahead of formal Q3 results. Zacks: CRDO Soars 9.2%
• Neutral Sentiment: Coverage highlights raised FY26/FY27 revenue expectations (some outlets cite a ~200% Y/Y FY26 guide and FY27 near $2B), which are highly material if realized but subject to execution risk. Yahoo Finance: Credo Raises Fiscal 2026 Outlook
• Negative Sentiment: Some analysts and commentaries warn the recent rally has priced in a lot of upside; Zacks and others note that rapid estimate revisions and the big run-up increase the risk of a short-term pullback if execution or cadence differs from lofty expectations. Zacks caution on further upside

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on CRDO shares. Zacks Research lowered Credo Technology Group from a “strong-buy” rating to a “hold” rating in a report on Monday, February 2nd. JPMorgan Chase & Co. initiated coverage on Credo Technology Group in a research report on Friday, October 17th. They issued an “overweight” rating and a $165.00 target price on the stock. Wolfe Research set a $240.00 price target on Credo Technology Group in a research report on Tuesday, December 2nd. Roth Mkm lowered their price objective on shares of Credo Technology Group from $250.00 to $200.00 and set a “buy” rating on the stock in a report on Tuesday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Credo Technology Group in a research report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $212.69.

Credo Technology Group Price Performance

The firm has a market capitalization of $23.19 billion, a P/E ratio of 112.63 and a beta of 2.65. The firm’s 50 day moving average is $143.01 and its two-hundred day moving average is $142.92.

Credo Technology Group (NASDAQ:CRDO) last announced its quarterly earnings data on Monday, December 1st. The company reported $0.67 EPS for the quarter, beating analysts’ consensus estimates of $0.49 by $0.18. Credo Technology Group had a net margin of 26.63% and a return on equity of 25.28%. The company had revenue of $268.03 million during the quarter, compared to the consensus estimate of $234.99 million. During the same quarter last year, the firm posted $0.07 EPS. The company’s quarterly revenue was up 272.1% on a year-over-year basis. Analysts anticipate that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current fiscal year.

Insider Transactions at Credo Technology Group

In related news, COO Yat Tung Lam sold 370,000 shares of the company’s stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $153.19, for a total value of $56,680,300.00. Following the transaction, the chief operating officer owned 400,000 shares in the company, valued at approximately $61,276,000. This represents a 48.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Chi Fung Cheng sold 55,000 shares of the firm’s stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $174.70, for a total transaction of $9,608,500.00. Following the sale, the chief technology officer owned 6,613,961 shares of the company’s stock, valued at $1,155,458,986.70. This trade represents a 0.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 917,976 shares of company stock worth $136,567,647. 11.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On Credo Technology Group

Large investors have recently added to or reduced their stakes in the stock. GWN Securities Inc. raised its holdings in Credo Technology Group by 173.0% in the 4th quarter. GWN Securities Inc. now owns 3,612 shares of the company’s stock valued at $520,000 after acquiring an additional 2,289 shares in the last quarter. Metis Global Partners LLC acquired a new position in Credo Technology Group in the fourth quarter valued at about $230,000. Deutsche Bank AG lifted its position in Credo Technology Group by 38.8% during the fourth quarter. Deutsche Bank AG now owns 973,711 shares of the company’s stock worth $140,107,000 after purchasing an additional 272,353 shares during the period. GW&K Investment Management LLC lifted its position in Credo Technology Group by 99.7% during the fourth quarter. GW&K Investment Management LLC now owns 401,678 shares of the company’s stock worth $57,798,000 after purchasing an additional 200,494 shares during the period. Finally, Gaddis Premier Wealth Advisors LLC acquired a new stake in Credo Technology Group during the fourth quarter worth about $964,000. Institutional investors and hedge funds 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.