Credo Technology Group (NASDAQ:CRDO) Shares Down 7.9% - Here's Why

Key Points

• Credo Technology Group's shares fell 7.9% during mid-day trading, dropping from a previous close of $162.26 to a low of $146.80, amidst increased trading volume.
• Analysts have adjusted their price targets for Credo Technology Group, with Barclays raising it to $165.00, while Wall Street Zen downgraded it from a "buy" to a "hold" rating.
• Despite reporting earnings that missed expectations, Credo saw a 273.6% increase in year-over-year revenue, totaling $223.07 million for the quarter.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) traded down 7.9% during mid-day trading on Wednesday . The company traded as low as $146.80 and last traded at $149.38. 7,746,265 shares traded hands during mid-day trading, an increase of 46% from the average session volume of 5,300,113 shares. The stock had previously closed at $162.26.

Analysts Set New Price Targets

A number of equities analysts recently commented on CRDO shares. Barclays raised their target price on Credo Technology Group from $85.00 to $165.00 and gave the stock an "overweight" rating in a report on Thursday, September 4th. Stifel Nicolaus set a $155.00 price objective on Credo Technology Group in a research report on Thursday, September 4th. Needham & Company LLC lifted their price target on Credo Technology Group from $85.00 to $150.00 and gave the stock a "buy" rating in a research report on Thursday, September 4th. Wall Street Zen lowered Credo Technology Group from a "buy" rating to a "hold" rating in a research report on Saturday. Finally, Mizuho lifted their price target on shares of Credo Technology Group from $135.00 to $155.00 and gave the company an "outperform" rating in a research note on Thursday, September 4th. Two equities research analysts have rated the stock with a Strong Buy rating and thirteen have assigned a Buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Buy" and an average price target of $126.27.

Credo Technology Group Stock Performance

The firm has a market capitalization of $25.84 billion, a PE ratio of 222.96 and a beta of 2.59. The company's 50-day moving average price is $125.51 and its 200-day moving average price is $82.78.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its earnings results on Wednesday, September 3rd. The company reported $0.34 EPS 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 business had revenue of $223.07 million during the quarter, compared to analysts' expectations of $190.63 million. During the same period in the previous year, the company posted $0.04 earnings per share. Credo Technology Group's quarterly revenue was up 273.6% on a year-over-year basis. Credo Technology Group has set its Q2 2026 guidance at EPS. As a group, analysts anticipate that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current year.

Insider Activity

In related news, insider James Laufman sold 10,000 shares of the firm's stock in a transaction on Friday, September 5th. The shares were sold at an average price of $140.00, for a total transaction of $1,400,000.00. Following the completion of the sale, the insider directly owned 232,284 shares of the company's stock, valued at approximately $32,519,760. This trade represents a 4.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Lip Bu Tan sold 20,000 shares of the firm's stock in a transaction on Thursday, September 18th. The stock was sold at an average price of $175.12, for a total transaction of $3,502,400.00. Following the transaction, the director directly owned 422,180 shares of the company's stock, valued at approximately $73,932,161.60. This represents a 4.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 743,915 shares of company stock valued at $87,801,495 in the last 90 days. Insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Several institutional investors have recently made changes to their positions in the stock. JPMorgan Chase & Co. raised its stake in Credo Technology Group by 36.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 6,508,934 shares of the company's stock valued at $602,662,000 after purchasing an additional 1,739,844 shares during the last quarter. Nuveen LLC bought a new stake in shares of Credo Technology Group in the 1st quarter worth about $52,636,000. Alliancebernstein L.P. grew its holdings in shares of Credo Technology Group by 66.0% in the 2nd quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company's stock worth $283,778,000 after purchasing an additional 1,218,504 shares during the last quarter. 1832 Asset Management L.P. bought a new stake in Credo Technology Group during the 2nd quarter worth about $82,479,000. Finally, Swedbank AB grew its holdings in Credo Technology Group by 29.5% during the 1st quarter. Swedbank AB now owns 3,219,125 shares of the company's stock worth $129,280,000 after acquiring an additional 733,811 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.