Credo Technology Group (NASDAQ:CRDO) Trading Down 8.6% – Should You Sell?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price fell 8.6% during trading on Tuesday . The company traded as low as $206.12 and last traded at $206.63. Approximately 8,436,958 shares changed hands during mid-day trading, an increase of 17% from the average session volume of 7,198,641 shares. The stock had previously closed at $226.19.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Quarterly results exceeded estimates: Credo reported $1.20 in EPS versus the $1.17 consensus, while revenue of $479.0 million topped expectations of $473.3 million. The company also posted a 35.37% net margin and 32.30% return on equity. Credo Technology Group earnings press release
• Positive Sentiment: Analyst expectations remain constructive: The consensus price target implies approximately 28.2% potential upside, and recent upward earnings-estimate revisions could support the stock if Credo delivers stronger growth. Wall Street analysts on Credo price target
• Positive Sentiment: AI connectivity positioning: Credo joined the Open CPX MSA organization, supporting interoperable near-package and co-packaged optical interconnects for AI infrastructure. The move may strengthen its long-term opportunity with hyperscale customers. Credo joins Open CPX MSA organization
• Neutral Sentiment: Large move expected: Options-market activity indicated investors were positioning for an outsized move around earnings, reflecting elevated uncertainty rather than a clear directional signal. Credo options market ahead of earnings
• Negative Sentiment: High valuation raises the bar: Credo entered the report with substantial year-to-date gains, a high beta, and a price well above its 200-day moving average. Investors may be demanding stronger guidance or accelerating margins beyond the modest quarterly beat.
• Negative Sentiment: Key risks remain: Coverage highlighted optical margins and hyperscaler concentration as potential pressure points. Reports also cited insider selling and a prior decline from the yearly high, adding to caution ahead of the results. Credo insider selling and options market risks

Wall Street Analysts Forecast Growth

A number of analysts have commented on CRDO shares. Bank of America upped their price target on shares of Credo Technology Group from $252.00 to $340.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Evercore started coverage on Credo Technology Group in a research report on Monday, June 22nd. They set an “outperform” rating and a $325.00 target price on the stock. JPMorgan Chase & Co. boosted their price target on Credo Technology Group from $230.00 to $250.00 and gave the company an “overweight” rating in a research note on Tuesday, June 2nd. Needham & Company LLC increased their price target on Credo Technology Group from $220.00 to $275.00 and gave the stock a “buy” rating in a report on Monday, June 1st. Finally, Rosenblatt Securities reiterated a “neutral” rating and issued a $215.00 price objective on shares of Credo Technology Group in a research note on Monday, August 24th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, Credo Technology Group has a consensus rating of “Moderate Buy” and an average price target of $268.39.

Credo Technology Group Price Performance

The business’s fifty day moving average price is $237.11 and its 200-day moving average price is $187.97. The stock has a market capitalization of $38.83 billion, a price-to-earnings ratio of 83.32, a PEG ratio of 1.06 and a beta of 3.23.

Credo Technology Group (NASDAQ:CRDO) last posted its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.03. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The company had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. Equities research analysts predict that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Daniel W. Fleming sold 7,580 shares of the stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $245.88, for a total value of $1,863,770.40. Following the completion of the sale, the chief financial officer directly owned 504,708 shares of the company’s stock, valued at approximately $124,097,603.04. This represents a 1.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Fung Cheng sold 27,473 shares of the firm’s stock in a transaction on Friday, July 31st. The shares were sold at an average price of $209.53, for a total value of $5,756,417.69. Following the transaction, the chief technology officer owned 5,772,397 shares in the company, valued at approximately $1,209,490,343.41. This trade represents a 0.47% 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. In the last ninety days, insiders sold 435,076 shares of company stock valued at $101,043,506. Corporate insiders own 9.06% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. Corient Private Wealth LP lifted its position in shares of Credo Technology Group by 151.7% during the 2nd quarter. Corient Private Wealth LP now owns 6,604 shares of the company’s stock worth $1,796,000 after buying an additional 3,980 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Credo Technology Group during the second quarter valued at approximately $12,728,000. California State Teachers Retirement System lifted its holdings in Credo Technology Group by 28,062.9% during the second quarter. California State Teachers Retirement System now owns 67,840,375 shares of the company’s stock worth $18,449,190,000 after acquiring an additional 67,599,489 shares during the period. Greenland Capital Management LP purchased a new position in Credo Technology Group in the second quarter worth $415,000. Finally, Ameritas Advisory Services LLC purchased a new position in Credo Technology Group in the second quarter worth $210,000. 80.46% of the stock is owned by institutional investors.

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.