Credo Technology Group (NASDAQ:CRDO) Shares Down 10.1% - Here's Why

Key Points

• Credo Technology Group shares fell 10.1% on Tuesday, trading as low as $265.53 after closing at $302.52 the prior day. Volume was also elevated, with more than 10.3 million shares changing hands, about 36% above average.
• Despite the pullback, analyst sentiment remains strongly bullish. Several firms recently raised price targets, including Bank of America to $340 and Stifel to $350, while the broader consensus rating stays at “Buy.”
• The company’s latest earnings showed strong fundamental growth, with quarterly EPS of $1.16 topping estimates and revenue rising 157% year over year to $437 million. Insider selling was also notable, including sales by the CEO and CTO over the past few weeks.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) was down 10.1% on Tuesday . The stock traded as low as $265.53 and last traded at $272.01. Approximately 10,321,867 shares changed hands during mid-day trading, an increase of 36% from the average session volume of 7,571,133 shares. The stock had previously closed at $302.52.

Trending Headlines about Credo Technology Group

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

• Positive Sentiment: Stifel raised its price target on Credo Technology Group to $350 from $250 and kept a Buy rating, signaling confidence in continued growth. Why Is Credo Technology Stock Soaring Monday?
• Positive Sentiment: Bank of America lifted its price target to $340 from $252 and reiterated a Buy rating, implying substantial upside from recent trading levels. Bank of America raises CRDO target
• Positive Sentiment: Evercore upgraded Credo to Strong Buy with a $325 target, citing expanding opportunities in AI networking infrastructure and a broader move beyond copper-based connections. Evercore upgrades CRDO
• Positive Sentiment: Credo was also added to Zacks’ Rank #1 (Strong Buy) growth list, reinforcing the market’s bullish growth outlook for the name. Best Growth Stocks to Buy for June 23rd
• Positive Sentiment: Recent coverage highlighted strong demand in AI data-center interconnects, including active electrical cables and optical products, which investors are viewing as a major long-term growth driver. Credo Technology Earns New Analyst Upgrade

Analyst Ratings Changes

CRDO has been the topic of a number of research reports. Rothschild & Co Redburn initiated coverage on shares of Credo Technology Group in a research note on Friday, May 1st. They issued a "buy" rating and a $206.00 price objective on the stock. TD Cowen upped their price target on shares of Credo Technology Group from $240.00 to $260.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Needham & Company LLC increased their price target on shares of Credo Technology Group from $220.00 to $275.00 and gave the company a "buy" rating in a research report on Monday, June 1st. Mizuho lifted their price objective on Credo Technology Group from $260.00 to $290.00 and gave the stock an "outperform" rating in a research report on Tuesday, June 2nd. Finally, Bank of America upped their target price on Credo Technology Group from $252.00 to $340.00 and gave the company a "buy" rating in a research note on Tuesday. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $263.11.

Credo Technology Group Stock Down 10.1%

The stock has a market cap of $50.72 billion, a price-to-earnings ratio of 109.68, a PEG ratio of 1.43 and a beta of 3.22. The stock has a fifty day moving average of $203.74 and a two-hundred day moving average of $154.84.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings data on Monday, June 1st. The company reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.14. Credo Technology Group had a net margin of 35.37% and a return on equity of 32.30%. The company had revenue of $437.00 million during the quarter, compared to analyst estimates of $431.80 million. During the same quarter in the prior year, the business earned $0.20 earnings per share. The business's quarterly revenue was up 157.0% compared to the same quarter last year. Equities research analysts anticipate that Credo Technology Group Holding Ltd. will post 4.84 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $246.69, for a total value of $6,783,975.00. Following the completion of the sale, the chief technology officer owned 5,964,870 shares in the company, valued at approximately $1,471,473,780.30. This trade represents a 0.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Joseph Brennan sold 54,984 shares of Credo Technology Group stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $218.57, for a total transaction of $12,017,852.88. Following the sale, the chief executive officer owned 367,327 shares in the company, valued at $80,286,662.39. This represents a 13.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 389,384 shares of company stock valued at $70,041,518. 11.84% of the stock is owned by insiders.

Hedge Funds Weigh In On Credo Technology Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Crewe Advisors LLC lifted its stake in shares of Credo Technology Group by 163.1% in the fourth quarter. Crewe Advisors LLC now owns 171 shares of the company's stock worth $25,000 after acquiring an additional 106 shares in the last quarter. Reflection Asset Management acquired a new stake in Credo Technology Group during the 4th quarter valued at approximately $25,000. Acumen Wealth Advisors LLC purchased a new stake in Credo Technology Group during the 4th quarter worth approximately $25,000. Flagship Harbor Advisors LLC purchased a new stake in Credo Technology Group during the 4th quarter worth approximately $32,000. Finally, Smallwood Wealth Investment Management LLC acquired a new position in shares of Credo Technology Group in the 4th quarter valued at approximately $36,000. 80.46% of the stock is owned by hedge funds and other institutional investors.

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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