Credo Technology Group (NASDAQ:CRDO) Downgraded to "Hold" Rating by Zacks Research

Key Points

• Zacks downgraded Credo from "strong‑buy" to "hold", but the consensus remains a "Moderate Buy" with an average price target of $204.38 and most analysts still issuing Buy ratings around $200–$220.
• Credo beat quarterly estimates, reporting $1.07 EPS vs. $0.78 expected and $407.0M revenue (up 201.5% YoY); the stock has rallied (recently up ~18.6%) while trading at a high PE (~88.5).
• Major M&A move: Credo agreed to acquire DustPhotonics for roughly $750M to add silicon‑photonics capability and expand its AI/data‑center market, though the deal raises near‑term integration and execution risk.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other research analysts also recently weighed in on the stock. Craig Hallum reiterated a "buy" rating and issued a $200.00 price target on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Stifel Nicolaus set a $200.00 price target on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Weiss Ratings restated a "hold (c)" rating on shares of Credo Technology Group in a research report on Friday, March 27th. Roth Mkm decreased their price objective on shares of Credo Technology Group from $250.00 to $200.00 and set a "buy" rating on the stock in a research report on Tuesday, February 10th. Finally, Needham & Company LLC restated a "buy" rating and set a $220.00 price objective on shares of Credo Technology Group in a research report on Tuesday, March 3rd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $204.38.

Credo Technology Group Trading Up 18.6%

CRDO opened at $159.37 on Monday. Credo Technology Group has a 1-year low of $33.04 and a 1-year high of $213.80. The company has a market capitalization of $29.40 billion, a PE ratio of 88.54 and a beta of 2.72. The firm's 50 day simple moving average is $112.56 and its two-hundred day simple moving average is $136.82.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings results on Monday, March 2nd. The company reported $1.07 earnings per share for the quarter, topping the consensus estimate of $0.78 by $0.29. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. The business had revenue of $407.01 million for the quarter, compared to the consensus estimate of $385.94 million. During the same period last year, the firm earned $0.25 earnings per share. The company's quarterly revenue was up 201.5% on a year-over-year basis. Equities analysts forecast that Credo Technology Group will post 0.13 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Daniel W. Fleming sold 2,460 shares of the firm's stock in a transaction on Sunday, April 5th. The shares were sold at an average price of $101.45, for a total transaction of $249,567.00. Following the sale, the chief financial officer directly owned 441,258 shares in the company, valued at $44,765,624.10. This trade represents a 0.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Chi Fung Cheng sold 27,500 shares of the firm's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $118.25, for a total transaction of $3,251,875.00. Following the sale, the chief technology officer owned 6,134,870 shares in the company, valued at $725,448,377.50. The trade was a 0.45% 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. Insiders have sold 416,419 shares of company stock valued at $49,395,410 over the last 90 days. Company insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Crewe Advisors LLC increased its holdings in Credo Technology Group by 163.1% in the 4th quarter. Crewe Advisors LLC now owns 171 shares of the company's stock valued at $25,000 after acquiring an additional 106 shares during the last quarter. Reflection Asset Management bought a new stake in Credo Technology Group in the 4th quarter valued at $25,000. Atlantic Union Bankshares Corp bought a new stake in Credo Technology Group in the 3rd quarter valued at $25,000. Acumen Wealth Advisors LLC bought a new stake in Credo Technology Group in the 4th quarter valued at $25,000. Finally, First Horizon Corp bought a new stake in Credo Technology Group in the 3rd quarter valued at $26,000. 80.46% of the stock is currently owned by institutional investors.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Announced acquisition of DustPhotonics (roughly $750M) to add silicon‑photonic optical transceiver tech, expanding Credo’s addressable market in AI/data‑center connectivity and strengthening product/technology depth. Read More.
• Positive Sentiment: Jefferies initiated coverage with a Buy and $175 price target, arguing the market is underestimating Credo’s long‑term AI infrastructure upside — the call has lent credibility to the rally. Read More.
• Positive Sentiment: Unusually large call‑option purchases were reported, signaling speculative and hedged bullish positioning that can amplify intraday moves and reflect investor conviction about near‑term upside. Read More.
• Neutral Sentiment: Management hosted an M&A call to outline rationale, synergies and integration plans; transcript available — investors will watch guidance for timing and expected financial impact. Read More.
• Neutral Sentiment: Broader market tailwinds for semiconductor and AI‑related names (Nasdaq strength after macro data) have supported the move—sector momentum may be helping amplify gains. Read More.
• Negative Sentiment: Insider sale disclosed: CTO Chi Fung Cheng sold 27,500 shares under a pre‑arranged 10b5‑1 plan. The sale is modest versus his holdings but may draw attention from short‑term traders. Read More.
• Negative Sentiment: Execution and integration risk: the large optics deal expands addressable market but raises near‑term integration, margin and customer‑concentration questions that could temper expectations if not managed. Read More.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.