Credo Technology Group (NASDAQ:CRDO) Cut to "Hold" at Wall Street Zen

Key Points

• Credo Technology Group's stock rating has been downgraded from "buy" to "hold" by Wall Street Zen, impacting investor sentiment.
• Despite the downgrade, analysts from TD Cowen and Zacks Research have recently raised their price targets, indicating a range of strong buy recommendations from several firms.
• Insider trading activity shows significant stock sales by CEO William Joseph Brennan and Director Lip Bu Tan, suggesting potential concerns about the company's stock performance.

Wall Street Zen downgraded shares of Credo Technology Group (NASDAQ:CRDO - Free Report) from a buy rating to a hold rating in a research note released on Saturday.

Several other analysts have also weighed in on CRDO. Zacks Research raised Credo Technology Group from a "hold" rating to a "strong-buy" rating in a report on Monday, September 8th. Stifel Nicolaus set a $155.00 target price on shares of Credo Technology Group in a research report on Thursday, September 4th. Cowen reissued a "buy" rating on shares of Credo Technology Group in a report on Thursday, September 4th. Noble Financial raised Credo Technology Group to a "strong-buy" rating in a report on Tuesday, June 3rd. Finally, TD Cowen lifted their price target on Credo Technology Group from $140.00 to $160.00 and gave the company a "buy" rating in a report on Thursday, September 4th. Two equities research analysts have rated the stock with a Strong Buy rating and thirteen have given a Buy rating to the company. According to data from MarketBeat.com, Credo Technology Group currently has a consensus rating of "Buy" and a consensus price target of $126.27.

Credo Technology Group Stock Down 4.4%

Shares of Credo Technology Group stock traded down $7.44 during mid-day trading on Friday, reaching $162.12. 4,312,928 shares of the stock traded hands, compared to its average volume of 5,278,457. The business has a 50-day moving average of $123.01 and a 200 day moving average of $81.38. The stock has a market capitalization of $28.05 billion, a PE ratio of 242.33 and a beta of 2.59. Credo Technology Group has a fifty-two week low of $28.75 and a fifty-two week high of $176.70.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its quarterly earnings data on Wednesday, September 3rd. The company reported $0.34 earnings per share for the quarter, missing analysts' consensus estimates of $0.36 by ($0.02). Credo Technology Group had a net margin of 20.85% and a return on equity of 19.02%. The firm had revenue of $223.07 million during the quarter, compared to analyst estimates of $190.63 million. During the same period in the previous year, the firm posted $0.04 earnings per share. The company's quarterly revenue was up 273.6% compared to the same quarter last year. Credo Technology Group has set its Q2 2026 guidance at EPS. On average, equities research analysts expect that Credo Technology Group will post 0.13 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider James Laufman sold 10,000 shares of the company's stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $140.00, for a total value of $1,400,000.00. Following the transaction, the insider owned 232,284 shares in the company, valued at approximately $32,519,760. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Chi Fung Cheng sold 55,000 shares of the company's stock in a transaction on Monday, September 15th. The shares were sold at an average price of $163.98, for a total value of $9,018,900.00. Following the transaction, the chief technology officer directly owned 6,998,961 shares in the company, valued at $1,147,689,624.78. This represents a 0.78% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 816,163 shares of company stock valued at $92,702,453. Company insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

A number of hedge funds have recently made changes to their positions in the business. Operose Advisors LLC raised its position in Credo Technology Group by 69.2% in the 1st quarter. Operose Advisors LLC now owns 616 shares of the company's stock worth $25,000 after purchasing an additional 252 shares during the period. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Credo Technology Group in the 1st quarter valued at about $25,000. Mirae Asset Global Investments Co. Ltd. bought a new position in Credo Technology Group during the 1st quarter worth approximately $27,000. Pinpoint Asset Management Singapore Pte. Ltd. purchased a new position in shares of Credo Technology Group in the second quarter worth $27,000. Finally, Harbour Investments Inc. purchased a new stake in Credo Technology Group in the first quarter worth $29,000. 80.46% of the stock is currently owned by institutional investors.

About Credo Technology Group

Credo Technology Group Holding Ltd provides various high-speed connectivity Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet applications in the United States, Taiwan, Mainland China, Hong Kong, and internationally. Its products include HiWire active electrical cables, optical digital signal processors, low-power line card PHY, serializer/deserializer (SerDes) chiplets, and SerDes IP, as well as integrated circuits, active electrical cables.