Credo Technology Group (NASDAQ:CRDO) Trading Down 9.2% - Here's What Happened

Key Points

• Credo Technology Group shares fell by 9.2%, trading between $139.60 and $136.15, with a volume decline of 20% from the daily average during mid-day trading.
• Some brokerages have significantly raised their price targets for CRDO, with Needham & Company increasing it from $85.00 to $150.00, reflecting strong analyst support for the stock.
• The company reported earnings of $0.34 per share, slightly missing expectations, though its revenue of $223.07 million surpassed forecasts, marking a year-over-year growth of 273.6%.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) shares dropped 9.2% during mid-day trading on Tuesday . The stock traded as low as $139.60 and last traded at $136.15. Approximately 4,289,430 shares were traded during mid-day trading, a decline of 20% from the average daily volume of 5,341,176 shares. The stock had previously closed at $149.90.

Wall Street Analyst Weigh In

Several brokerages have commented on CRDO. Needham & Company LLC boosted their target price on shares of Credo Technology Group from $85.00 to $150.00 and gave the stock a "buy" rating in a research report on Thursday, September 4th. Barclays restated an "overweight" rating and set a $165.00 target price on shares of Credo Technology Group in a research report on Tuesday, October 7th. Stifel Nicolaus set a $160.00 target price on shares of Credo Technology Group in a research report on Wednesday, October 1st. Wall Street Zen upgraded shares of Credo Technology Group from a "hold" rating to a "buy" rating in a research report on Sunday, September 28th. Finally, Roth Capital reiterated a "buy" rating and issued a $170.00 price objective on shares of Credo Technology Group in a research report on Tuesday, September 30th. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $128.55.

Credo Technology Group Stock Performance

The firm has a market capitalization of $22.39 billion, a PE ratio of 193.21 and a beta of 2.60. The company's fifty day moving average price is $137.33 and its two-hundred day moving average price is $92.85.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings data on Wednesday, September 3rd. The company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.36 by ($0.02). The company had revenue of $223.07 million for the quarter, compared to analysts' expectations of $190.63 million. Credo Technology Group had a return on equity of 19.02% and a net margin of 20.85%.The company's revenue was up 273.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.04 earnings per share. Credo Technology Group has set its Q2 2026 guidance at EPS. On average, equities analysts expect that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current year.

Insider Activity

In related news, CTO Chi Fung Cheng sold 55,000 shares of the stock in a transaction that occurred on Monday, October 6th. The shares were sold at an average price of $148.35, for a total transaction of $8,159,250.00. Following the completion of the sale, the chief technology officer owned 6,833,961 shares of the company's stock, valued at approximately $1,013,818,114.35. This represents a 0.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Yat Tung Lam sold 80,000 shares of the stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $143.53, for a total transaction of $11,482,400.00. Following the sale, the chief operating officer directly owned 920,000 shares of the company's stock, valued at approximately $132,047,600. This trade represents a 8.00% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 942,181 shares of company stock worth $125,650,330. Insiders own 11.84% of the company's stock.

Institutional Trading of Credo Technology Group

Large investors have recently bought and sold shares of the company. 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 valued at $25,000 after acquiring an additional 252 shares in the last quarter. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Credo Technology Group during the first quarter worth approximately $25,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Credo Technology Group during the first quarter worth approximately $27,000. Pinpoint Asset Management Singapore Pte. Ltd. acquired a new stake in shares of Credo Technology Group during the second quarter worth approximately $27,000. Finally, Harbour Investments Inc. acquired a new stake in shares of Credo Technology Group during the first quarter worth approximately $29,000. Institutional investors and hedge funds own 80.46% of the company's stock.

Credo Technology Group Company Profile

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.

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