Credo Technology Group (NASDAQ:CRDO) Stock Price Down 7.2% - Here's Why

Key Points

• Credo Technology Group shares fell 7.2% on Tuesday, trading as low as $235.59 after closing at $265.55 the prior session, despite heavy volume of about 7.7 million shares.
• Recent coverage remains broadly upbeat: the stock was added to Zacks’ Strong Buy growth list, analysts continue to raise price targets, and MarketBeat highlighted Credo as an AI revenue accelerator benefiting from strong networking demand.
• Fundamentals have been strong, with the latest quarter showing EPS of $1.16 versus $1.02 expected and revenue up 157% year over year; however, some commentary warned that near-term results may be less favorable and insiders have been selling shares recently.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s share price fell 7.2% on Tuesday . The company traded as low as $235.59 and last traded at $246.40. Approximately 7,728,916 shares were traded during mid-day trading, a decline of 2% from the average session volume of 7,856,445 shares. The stock had previously closed at $265.55.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: CRDO was added to Zacks’ Rank #1 “Strong Buy” growth stocks list, which can reinforce investor confidence in the company’s earnings momentum and growth outlook. Best Growth Stocks to Buy for July 7th
• Positive Sentiment: MarketBeat highlighted Credo as a quiet AI revenue accelerator, citing strong AI-driven sales growth and a favorable analyst Buy rating, which supports the stock’s premium valuation. 3 Quiet AI Revenue Accelerators With Sales Growth Outpacing Peers (CRDO)
• Positive Sentiment: Commentary noted Credo “scores a major win” from Nvidia’s delay, suggesting the timing could create more opportunity for Credo’s networking products in AI data centers. Credo Scores A Major Win From Nvidia's Delay
• Positive Sentiment: Several articles argued that Credo’s retimer business is hitting an inflection point, with rising demand for 100G and 200G-per-lane solutions tied to AI networking and new design wins. CRDO's Retimer Business Hits Its Stride: Further Gains Ahead?
• Neutral Sentiment: Additional coverage compared Credo with Marvell and other AI hardware names, keeping CRDO in the spotlight as investors weigh its upside versus larger semiconductor peers. Credo Technology Group vs. Marvell Technology: Which Technology Stock Is a Better Buy in 2026?
• Negative Sentiment: One Seeking Alpha piece argued that Credo’s third quarter “won’t be as kind,” introducing a cautionary view that could temper near-term enthusiasm after the recent run-up. Credo: Q3 Won't Be As Kind

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Evercore initiated coverage on shares of Credo Technology Group in a report on Monday, June 22nd. They set an "outperform" rating and a $325.00 target price on the stock. Roth Capital upped their target price on Credo Technology Group from $200.00 to $300.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. Susquehanna lifted their price objective on shares of Credo Technology Group from $200.00 to $235.00 and gave the company a "positive" rating in a research note on Tuesday, June 2nd. Mizuho increased their price objective on shares of Credo Technology Group from $260.00 to $290.00 and gave the stock an "outperform" rating in a research note on Tuesday, June 2nd. Finally, Rosenblatt Securities lifted their price target on Credo Technology Group from $175.00 to $215.00 and gave the company a "neutral" rating in a research report on Tuesday, June 2nd. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $263.11.

Credo Technology Group Stock Down 7.2%

The company's fifty day moving average price is $222.52 and its two-hundred day moving average price is $161.46. The company has a market cap of $45.95 billion, a price-to-earnings ratio of 99.35, a PEG ratio of 1.11 and a beta of 3.20.

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

Insider Buying and Selling

In related news, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction on Friday, April 10th. The stock was sold at an average price of $118.25, for a total transaction of $3,251,875.00. Following the completion of the sale, the chief technology officer owned 6,134,870 shares of the company's stock, valued at approximately $725,448,377.50. This trade represents a 0.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Joseph Brennan sold 54,984 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $218.57, for a total value of $12,017,852.88. Following the transaction, the chief executive officer owned 367,327 shares in the company, valued at approximately $80,286,662.39. The trade was a 13.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 363,372 shares of company stock valued at $76,926,125. Company insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

Several large investors have recently added to or reduced their stakes in the stock. City Center Advisors LLC boosted its position in Credo Technology Group by 2.1% during the 2nd quarter. City Center Advisors LLC now owns 2,595 shares of the company's stock valued at $706,000 after purchasing an additional 53 shares during the period. Versant Capital Management Inc increased its holdings in Credo Technology Group by 8.0% in the second quarter. Versant Capital Management Inc now owns 755 shares of the company's stock worth $205,000 after buying an additional 56 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Credo Technology Group by 16.2% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 552 shares of the company's stock worth $80,000 after buying an additional 77 shares during the last quarter. QRG Capital Management Inc. increased its stake in Credo Technology Group by 1.7% during the first quarter. QRG Capital Management Inc. now owns 5,402 shares of the company's stock valued at $507,000 after acquiring an additional 91 shares during the period. Finally, Bank of Nova Scotia boosted its stake in shares of Credo Technology Group by 1.6% in the 1st quarter. Bank of Nova Scotia now owns 6,026 shares of the company's stock valued at $566,000 after purchasing an additional 92 shares in the last quarter. 80.46% of the stock is owned by institutional investors.

About Credo Technology Group

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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