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

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

Credo Technology Group News Summary

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

Analyst Upgrades and Downgrades

Several analysts recently issued reports on CRDO shares. Weiss Ratings reiterated a “hold (c+)” rating on shares of Credo Technology Group in a report on Friday, August 21st. Wall Street Zen cut shares of Credo Technology Group from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. 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. Zacks Research downgraded Credo Technology Group from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. Finally, Barclays boosted their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a report on Monday, July 20th. 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 an average rating of “Moderate Buy” and a consensus price target of $268.39.

Credo Technology Group Price Performance

The business’s 50-day simple moving average is $237.11 and its two-hundred day simple moving average is $187.97. The stock has a market cap of $38.83 billion, a price-to-earnings ratio of 83.32, a price-to-earnings-growth ratio of 1.06 and a beta of 3.23.

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

Insider Activity

In other news, COO Yat Tung Lam sold 55,441 shares of the company’s stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $213.02, for a total value of $11,810,041.82. Following the completion of the transaction, the chief operating officer owned 2,529,169 shares of the company’s stock, valued at $538,763,580.38. This represents a 2.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel W. Fleming sold 7,580 shares of the firm’s stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $245.88, for a total transaction of $1,863,770.40. Following the completion of the transaction, the chief financial officer owned 504,708 shares of the company’s stock, valued at approximately $124,097,603.04. This trade represents a 1.48% 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 three months, insiders have sold 435,076 shares of company stock valued at $101,043,506. 9.06% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Credo Technology Group

A number of institutional investors have recently added to or reduced their stakes in CRDO. Reflection Asset Management bought a new position in shares of Credo Technology Group during the fourth quarter valued at $25,000. Acumen Wealth Advisors LLC bought a new stake in shares of Credo Technology Group in the fourth quarter worth $25,000. Orion Capital Management LLC acquired a new stake in Credo Technology Group in the second quarter valued at $27,000. AlphaCentric Advisors LLC bought a new position in shares of Credo Technology Group during the first quarter worth about $33,000. Finally, Van ECK Associates Corp acquired a new position in shares of Credo Technology Group in the fourth quarter worth approximately $37,000. 80.46% of the stock is owned by institutional investors.

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.