Credo Technology Group (NASDAQ:CRDO) Shares Down 4.9% – What’s Next?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) fell 4.9% on Friday. The stock traded as low as $168.56 and last traded at $169.70. Approximately 6,190,615 shares changed hands during mid-day trading, a decline of 18% from the average session volume of 7,589,259 shares. The stock had previously closed at $178.50.

Trending Headlines about Credo Technology Group

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

• Positive Sentiment: Credo launched a new optical connectivity standards group focused on advancing interoperability for AI data-center networks. Establishing industry standards could strengthen Credo’s influence and support longer-term adoption of its optical products. Credo starts optical connectivity standards group
• Positive Sentiment: Recent coverage highlights Credo’s role in solving the high-speed interconnect and reliability challenges limiting large AI clusters. Its active electrical and optical cables, SerDes technology and other connectivity products could benefit as hyperscalers expand AI infrastructure. Credo AI connectivity opportunity
• Positive Sentiment: Analysts and financial commentary continue to point to exceptional growth: the latest quarter produced $479 million in revenue, up 114.7% year over year, while management’s outlook calls for approximately $525 million to $535 million in near-term revenue and more than 85% fiscal 2027 growth. Credo AI data-center growth
• Neutral Sentiment: Rosenblatt reaffirmed a “Neutral” rating but raised its price target to $235, implying substantial upside from recent levels. The broader analyst consensus remains “Moderate Buy,” although target reductions and concerns about customer concentration temper the optimism. Credo analyst targets
• Negative Sentiment: The recent decline appears driven primarily by sector-wide profit-taking and concern that Credo’s valuation leaves little room for execution disappointments. With a high earnings multiple and elevated volatility, investors are reassessing the stock even though results remain strong. Credo valuation and selloff analysis
• Negative Sentiment: Insiders have reported sales, including CTO Chi Cheng’s sale of 31,290 shares and director Pantas Sutardja’s sale of 1,540 shares. The transactions were made under pre-arranged Rule 10b5-1 plans and represent small portions of their remaining holdings, but they may still weigh on sentiment. Credo insider selling

Analyst Upgrades and Downgrades

Several research firms recently commented on CRDO. TD Cowen boosted their price target on Credo Technology Group from $260.00 to $300.00 and gave the stock a “buy” rating in a research report on Tuesday, August 18th. Stifel Nicolaus lowered their price target on shares of Credo Technology Group from $350.00 to $310.00 and set a “buy” rating for the company in a report on Monday, October 5th. Susquehanna upped their price objective on shares of Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a research report on Tuesday, July 21st. Wall Street Zen lowered Credo Technology Group from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Finally, Barclays increased their target price on Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a research note on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $262.67.

Credo Technology Group Stock Performance

The stock has a fifty day moving average price of $206.04 and a two-hundred day moving average price of $205.07. The firm has a market capitalization of $31.90 billion, a P/E ratio of 60.39, a P/E/G ratio of 0.71 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO) last issued 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. The company had revenue of $479.00 million for the quarter, compared to analysts’ expectations of $473.30 million. Credo Technology Group had a net margin of 33.83% and a return on equity of 28.77%. The firm’s revenue was up 114.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.52 earnings per share. As a group, research analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Insider Activity

In other news, CTO Chi Cheng sold 27,500 shares of the company’s stock in a transaction on Wednesday, September 23rd. The stock was sold at an average price of $193.12, for a total value of $5,310,800.00. Following the completion of the sale, the chief technology officer owned 5,689,897 shares in the company, valued at $1,098,832,908.64. This represents a 0.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Lam sold 55,441 shares of the stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the sale, the chief operating officer directly owned 2,529,169 shares of the company’s stock, valued at approximately $538,763,580.38. This represents a 2.15% 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 90 days, insiders sold 468,786 shares of company stock valued at $95,025,003. 9.06% of the stock is owned by insiders.

Institutional Trading of Credo Technology Group

Several institutional investors and hedge funds have recently bought and sold shares of CRDO. Pension & Wealth Management Advisors Inc. boosted its stake in Credo Technology Group by 80.0% in the 3rd quarter. Pension & Wealth Management Advisors Inc. now owns 1,735 shares of the company’s stock worth $338,000 after purchasing an additional 771 shares during the period. Riverbend Wealth Management LLC boosted its position in Credo Technology Group by 86.0% during the 3rd quarter. Riverbend Wealth Management LLC now owns 1,399 shares of the company’s stock worth $273,000 after acquiring an additional 647 shares during the period. Activest Wealth Management increased its holdings in shares of Credo Technology Group by 214.6% in the 3rd quarter. Activest Wealth Management now owns 1,655 shares of the company’s stock valued at $322,000 after purchasing an additional 1,129 shares during the period. Walser Wealth Management Company A Ltd Liability Co boosted its holdings in shares of Credo Technology Group by 13.2% during the third quarter. Walser Wealth Management Company A Ltd Liability Co now owns 2,475 shares of the company’s stock worth $482,000 after purchasing an additional 289 shares during the period. Finally, Assenagon Asset Management S.A. increased its stake in Credo Technology Group by 1,020.4% in the 3rd quarter. Assenagon Asset Management S.A. now owns 65,653 shares of the company’s stock valued at $12,789,000 after buying an additional 59,793 shares during the period. Institutional investors and hedge funds own 80.46% of the company’s stock.

Credo Technology Group Company Profile

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for data infrastructure. Its technologies are designed to improve the performance, power efficiency and reliability of connections used in cloud computing, artificial intelligence, high-performance computing, telecommunications and enterprise networks.

The company’s product portfolio includes serializer/deserializer (SerDes) intellectual property, integrated circuits, active electrical cables and optical connectivity products.