Credo Technology Group (NASDAQ:CRDO) Trading Up 3.9% – Still a Buy?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price rose 3.9% on Friday . The company traded as high as $172.05 and last traded at $170.57. Approximately 10,578,357 shares traded hands during trading, an increase of 43% from the average daily volume of 7,402,103 shares. The stock had previously closed at $164.17.

Credo Technology Group News Roundup

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

• Positive Sentiment: Credo reported revenue of $479 million, up 115% year over year, and adjusted EPS of $1.20, both above analysts’ estimates. Management also expects fiscal 2027 revenue growth of more than 85%, with optical revenue exceeding $600 million. Why I Doubled Down On Credo
• Positive Sentiment: Bullish commentary says the optical business should become a second growth engine in the second half of fiscal 2027. The DustPhotonics acquisition expands Credo’s exposure to silicon photonics, 800G, 1.6T and co-packaged optical technologies. Credo And the Illusion of Its Q1 Problems
• Positive Sentiment: Stifel maintained a Buy view, while Rosenblatt raised its price target to $235. Other analysts continue to see demand from AI data centers, hyperscalers, neocloud providers and the transition to 1.6T networking as drivers of Credo’s active electrical cable growth. Credo Receives a Buy from Stifel Nicolaus
• Neutral Sentiment: Credo’s valuation has compressed significantly following the selloff, prompting some investors to view the decline as a buying opportunity. However, expectations remain heavily dependent on successful optical-product execution and sustained hyperscaler capital spending. Credo: The Market Is In Disbelief
• Negative Sentiment: The primary pressure on CRDO remains concern over shrinking gross margins, rising operating expenses and the cost structure of recent acquisitions. Investors are questioning whether optical revenue can ramp quickly enough to offset potential margin compression. Did the Market Overreact?
• Negative Sentiment: Bears also cite customer concentration, with more than 60% of revenue tied to hyperscalers, competitive threats from Marvell, insider selling, substantial stock-based compensation and goodwill representing a large portion of the balance sheet. Bank of America lowered its price target to $275, adding to the cautious tone. Credo: This Is Not a Buying Opportunity

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on CRDO shares. Susquehanna raised their price target on Credo Technology Group from $235.00 to $250.00 and gave the company a “positive” rating in a research report on Tuesday, July 21st. Stifel Nicolaus increased their target price on Credo Technology Group from $250.00 to $350.00 and gave the company a “buy” rating in a research note on Monday, June 22nd. Needham & Company LLC raised their target price on Credo Technology Group from $220.00 to $275.00 and gave the company a “buy” rating in a report on Monday, June 1st. Evercore set a $292.00 price target on Credo Technology Group in a research report on Wednesday. Finally, Jefferies Financial Group upped their price target on Credo Technology Group from $225.00 to $270.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. 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 stock. Based on data from MarketBeat.com, Credo Technology Group presently has a consensus rating of “Moderate Buy” and an average target price of $267.39.

Credo Technology Group Price Performance

The company’s 50 day moving average is $231.67 and its two-hundred day moving average is $189.13. The firm has a market cap of $32.06 billion, a P/E ratio of 60.70, a PEG ratio of 0.75 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO) last issued its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.03. The firm had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. Credo Technology Group had a return on equity of 32.91% and a net margin of 33.83%.The company’s quarterly revenue was up 114.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.52 earnings per share. Research analysts predict that Credo Technology Group Holding Ltd. will post 4.89 EPS for the current year.

Insider Activity

In other Credo Technology Group news, COO Yat Lam sold 55,441 shares of the business’s stock in a transaction on Friday, July 31st. The shares were sold at an average price of $213.02, for a total value of $11,810,041.82. Following the sale, the chief operating officer owned 2,529,169 shares of the company’s stock, valued at $538,763,580.38. The trade was a 2.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,473 shares of the stock in a transaction on Friday, July 31st. The shares were sold at an average price of $209.53, for a total transaction of $5,756,417.69. Following the completion of the transaction, the chief technology officer owned 5,772,397 shares of the company’s stock, valued at approximately $1,209,490,343.41. This represents a 0.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 377,884 shares of company stock worth $88,559,765. Company insiders own 9.06% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. M&T Bank Corp boosted its position in Credo Technology Group by 428.8% during the 4th quarter. M&T Bank Corp now owns 13,427 shares of the company’s stock worth $1,932,000 after acquiring an additional 10,888 shares during the last quarter. California State Teachers Retirement System lifted its position in shares of Credo Technology Group by 2.2% in the first quarter. California State Teachers Retirement System now owns 240,886 shares of the company’s stock worth $22,612,000 after purchasing an additional 5,113 shares in the last quarter. TimesSquare Capital Management LLC lifted its position in shares of Credo Technology Group by 5.5% in the fourth quarter. TimesSquare Capital Management LLC now owns 264,181 shares of the company’s stock worth $38,013,000 after purchasing an additional 13,881 shares in the last quarter. Corsair Capital Management L.P. acquired a new position in Credo Technology Group during the first quarter worth $469,000. Finally, Sumitomo Mitsui DS Asset Management Company Ltd boosted its holdings in Credo Technology Group by 154.5% during the fourth quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 32,468 shares of the company’s stock worth $4,672,000 after purchasing an additional 19,708 shares during the last quarter. Institutional investors own 80.46% of the company’s stock.

About Credo Technology Group

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.