JPMorgan Chase & Co. Has Lowered Expectations for Credo Technology Group (NASDAQ:CRDO) Stock Price

Key Points

• JPMorgan cut Credo Technology Group’s price target to $310 from $335 but maintained an “overweight” rating, implying roughly 89% upside from the reported $163.84 share price.
• Credo’s shares fell 20.7% amid heightened volatility, despite strong quarterly results: EPS of $1.20 beat estimates, revenue reached $479 million, and sales grew 114.7% year over year.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and $267.39 average target, though investors remain concerned about the stock’s rich valuation, margin pressure, customer concentration and the pace of optical-product growth.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) had its price objective cut by equities researchers at JPMorgan Chase & Co. from $335.00 to $310.00 in a research note issued on Wednesday, Benzinga reports. The firm presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 89.21% from the company's current price.

Other equities research analysts have also issued reports about the stock. Roth Capital lifted their price target on shares of Credo Technology Group from $200.00 to $300.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. 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. Stifel Nicolaus upped their price target on shares of Credo Technology Group from $250.00 to $350.00 and gave the stock a "buy" rating in a report on Monday, June 22nd. Zacks Research downgraded Credo Technology Group from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. Finally, Needham & Company LLC boosted their price objective on Credo Technology Group from $220.00 to $275.00 and gave the stock a "buy" rating in a research report on Monday, June 1st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Credo Technology Group presently has a consensus rating of "Moderate Buy" and an average target price of $267.39.

Credo Technology Group Stock Down 20.7%

Shares of CRDO traded down $42.79 during midday trading on Wednesday, hitting $163.84. The company's stock had a trading volume of 21,049,134 shares, compared to its average volume of 7,280,330. Credo Technology Group has a one year low of $86.49 and a one year high of $308.67. The company's fifty day simple moving average is $235.81 and its two-hundred day simple moving average is $188.53. The stock has a market capitalization of $30.79 billion, a price-to-earnings ratio of 65.95, a price-to-earnings-growth ratio of 1.02 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.03. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The business had revenue of $479.00 million during the quarter, compared to the consensus estimate of $473.30 million. During the same period in the prior year, the company earned $0.52 EPS. Credo Technology Group's revenue for the quarter was up 114.7% on a year-over-year basis. On average, research analysts predict that Credo Technology Group will post 4.89 earnings per share for the current year.

Insider Activity

In other news, CFO Daniel W. Fleming sold 7,580 shares of the firm's stock in a transaction dated Wednesday, July 8th. The stock was 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 directly owned 504,708 shares in the company, valued at $124,097,603.04. This trade represents a 1.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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 stock in a transaction that occurred 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 sale, the chief technology officer directly owned 5,772,397 shares of the company's stock, valued at $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 quarter, insiders sold 435,076 shares of company stock valued at $101,043,506. Company insiders own 9.06% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Reflection Asset Management acquired a new stake in shares of Credo Technology Group in the 4th quarter valued at about $25,000. Acumen Wealth Advisors LLC acquired a new stake in Credo Technology Group in the fourth quarter valued at approximately $25,000. Orion Capital Management LLC bought a new stake in shares of Credo Technology Group during the second quarter valued at approximately $27,000. AlphaCentric Advisors LLC acquired a new position in shares of Credo Technology Group during the first quarter worth approximately $33,000. Finally, Van ECK Associates Corp acquired a new position in shares of Credo Technology Group during the fourth quarter worth approximately $37,000. 80.46% of the stock is owned by institutional investors.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Credo reported fiscal Q1 EPS of $1.20 versus the $1.17 consensus estimate, while revenue rose 114.7% year over year to $479 million, slightly exceeding expectations. Credo Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management guided fiscal Q2 revenue to $525 million-$535 million, above the approximately $513.8 million analyst consensus, signaling continued demand for AI data-center connectivity products. Credo Q2 Revenue Guidance
• Positive Sentiment: Credo highlighted optical connectivity as its next major growth engine, with fiscal 2027 optical revenue potentially exceeding $600 million as active electrical cables and silicon-photonics products expand. Credo Earnings Call Highlights
• Positive Sentiment: Bank of America maintained a Buy rating with a $275 price target, while Rosenblatt raised its target to $235, suggesting analysts still see substantial long-term upside despite near-term caution.
• Neutral Sentiment: Credo joined the Open CPX MSA organization to help develop interoperable near-package and co-packaged optical interconnects, a strategic move that could support future AI infrastructure adoption but is not an immediate revenue catalyst. Credo Joins Open CPX MSA
• Neutral Sentiment: Heavy options activity indicates expectations for continued volatility following earnings and Credo’s large year-to-date rally.
• Negative Sentiment: The earnings beat was viewed as insufficient for a richly valued stock: Credo trades at a high earnings multiple after rising more than 12-fold over three years, leaving little room for disappointment. Credo Valuation Analysis
• Negative Sentiment: Investors remain concerned about margin pressure, customer concentration among hyperscalers and the risk that optical-product ramps may take longer or cost more than expected. Credo Q1 Results Investor Analysis

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.

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