Credo Technology Group (NASDAQ:CRDO) Shares Down 7.3% - Should You Sell?

Key Points

• Credo Technology Group's stock fell by 7.3% to approximately $110.06, marking a significant decline from its previous close of $118.74, with trading volume down 76% from the average.
• Analysts remain positive on the stock, with several firms raising their price targets, including Stifel Nicolaus increasing its target from $80 to $115 and a current consensus rating of "Buy."
• Despite the recent stock price drop, the company reported strong quarterly earnings, with revenue increasing by 179.6% year-over-year.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares were down 7.3% during trading on Tuesday . The company traded as low as $109.26 and last traded at $110.06. Approximately 1,219,763 shares traded hands during trading, a decline of 76% from the average daily volume of 5,178,678 shares. The stock had previously closed at $118.74.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on CRDO shares. Cowen reiterated a "buy" rating on shares of Credo Technology Group in a research report on Tuesday, June 3rd. Wall Street Zen raised Credo Technology Group from a "hold" rating to a "buy" rating in a research note on Saturday, August 16th. Susquehanna lifted their price target on shares of Credo Technology Group from $90.00 to $115.00 and gave the company a "positive" rating in a report on Tuesday, July 22nd. Stifel Nicolaus upped their price objective on shares of Credo Technology Group from $80.00 to $115.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Finally, Barclays set a $85.00 target price on shares of Credo Technology Group and gave the stock an "overweight" rating in a research report on Tuesday, June 3rd. One research analyst has rated the stock with a Strong Buy rating and twelve have assigned a Buy rating to the company. According to data from MarketBeat.com, Credo Technology Group currently has a consensus rating of "Buy" and an average target price of $91.27.

Credo Technology Group Trading Up 2.9%

The firm has a market capitalization of $19.57 billion, a PE ratio of 422.37, a P/E/G ratio of 1.99 and a beta of 2.59. The firm has a 50 day simple moving average of $101.64 and a 200 day simple moving average of $70.26.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings results on Monday, June 2nd. The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.27 by $0.08. Credo Technology Group had a return on equity of 8.77% and a net margin of 11.95%.The firm had revenue of $170.00 million for the quarter, compared to the consensus estimate of $159.59 million. During the same period in the prior year, the company posted $0.07 earnings per share. The company's quarterly revenue was up 179.6% on a year-over-year basis. Credo Technology Group has set its Q1 2026 guidance at EPS. Research analysts forecast that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current year.

Insider Activity at Credo Technology Group

In other Credo Technology Group news, CTO Chi Fung Cheng sold 55,000 shares of the business's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $107.12, for a total transaction of $5,891,600.00. Following the completion of the sale, the chief technology officer directly owned 7,108,961 shares in the company, valued at approximately $761,511,902.32. The trade was a 0.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Pantas Sutardja sold 1,875 shares of the company's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $107.00, for a total value of $200,625.00. Following the sale, the director owned 5,898,652 shares of the company's stock, valued at approximately $631,155,764. This trade represents a 0.03% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,274,583 shares of company stock worth $113,118,257. Company insiders own 16.04% of the company's stock.

Hedge Funds Weigh In On Credo Technology Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Pinpoint Asset Management Singapore Pte. Ltd. purchased a new position in shares of Credo Technology Group during the 2nd quarter valued at about $27,000. Wolff Wiese Magana LLC increased its holdings in shares of Credo Technology Group by 200.0% in the second quarter. Wolff Wiese Magana LLC now owns 450 shares of the company's stock worth $42,000 after purchasing an additional 300 shares during the last quarter. Cullen Frost Bankers Inc. boosted its position in shares of Credo Technology Group by 278.4% during the 2nd quarter. Cullen Frost Bankers Inc. now owns 473 shares of the company's stock valued at $44,000 after acquiring an additional 348 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in Credo Technology Group by 198.2% during the second quarter. EverSource Wealth Advisors LLC now owns 501 shares of the company's stock valued at $46,000 after purchasing an additional 333 shares during the last quarter. Finally, Operose Advisors LLC grew its position in Credo Technology Group by 69.2% in the first quarter. Operose Advisors LLC now owns 616 shares of the company's stock worth $25,000 after acquiring an additional 252 shares in the last quarter. 80.46% of the stock is currently owned by hedge funds and other 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.