Credo Technology Group (NASDAQ:CRDO) Trading Up 1.3% Following Earnings Beat

Key Points

• Credo Technology Group reported fiscal Q4 EPS of $1.16, beating estimates, while revenue surged 157% year over year to $437 million, signaling strong demand for its AI and data-center connectivity products.
• Despite the earnings beat, the stock only rose modestly and saw heavy trading, with some investors taking profits after the report and concerns lingering around guidance or margins.
• Analysts turned more bullish after the results, with several raising price targets and management guiding first-quarter fiscal 2027 revenue to $465 million-$475 million, above consensus.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) rose 1.3% on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $243.21 and last traded at $228.9860. Approximately 12,651,584 shares traded hands during mid-day trading, an increase of 105% from the average daily volume of 6,185,664 shares. The stock had previously closed at $226.10.

The company reported $1.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.14. The business had revenue of $437.00 million during the quarter, compared to analyst estimates of $431.80 million. Credo Technology Group had a net margin of 31.81% and a return on equity of 29.63%. The business's revenue was up 157.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.20 earnings per share.

Credo Technology Group News Roundup

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

• Positive Sentiment: Credo reported fiscal Q4 earnings of $1.16 per share, beating estimates, while revenue rose 157% year over year to $437 million, underscoring strong demand for its AI/data-center connectivity products. BusinessWire: Credo Technology Group Holding Ltd Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Management guided first-quarter fiscal 2027 revenue to $465 million-$475 million, above consensus, suggesting momentum is continuing into the new fiscal year. MarketBeat earnings report and transcript
• Positive Sentiment: Several analysts raised price targets after the report, including TD Cowen to $260, JPMorgan to $250, Bank of America to $252, and Mizuho to $260, reinforcing a constructive long-term view. Benzinga analyst target updates
• Positive Sentiment: Multiple commentary pieces highlighted Credo’s positioning in AI infrastructure and optical/copper connectivity, with some arguing the company is well placed for the next phase of AI capex. Seeking Alpha: Credo Earnings: Why This Stock Is Now My Largest Holding
• Neutral Sentiment: Despite the beat, shares are falling because investors seem unconvinced by the initial reaction to the results, with some commentary pointing to margin or guidance concerns rather than a problem with demand. Seeking Alpha news: revenue surges but fails to satisfy all investors
• Neutral Sentiment: Additional bullish articles and price-target commentary continue to frame CRDO as a high-growth AI networking name, though these are more supportive of the long-term story than the immediate trading action. MarketBeat: Credo Technologies Paved a Path to a $300 Price Point
• Negative Sentiment: Even after the strong quarter, the stock pulled back after-hours as investors sold the news, suggesting expectations were high and some holders wanted even more from the report. Benzinga: Credo Technology Group Stock Dives Despite Q4 Earnings Beat

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Susquehanna lifted their price target on Credo Technology Group from $200.00 to $235.00 and gave the stock a "positive" rating in a research note on Tuesday. Rosenblatt Securities increased their price target on Credo Technology Group from $175.00 to $215.00 and gave the company a "neutral" rating in a research note on Tuesday. Zacks Research raised Credo Technology Group from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 19th. Jefferies Financial Group increased their price target on Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a research note on Tuesday. Finally, Craig Hallum reaffirmed a "buy" rating and set a $200.00 price target on shares of Credo Technology Group in a research note on Tuesday, March 3rd. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Credo Technology Group currently has an average rating of "Buy" and a consensus price target of $248.41.

Insider Buying and Selling at Credo Technology Group

In other news, insider James Laufman sold 10,000 shares of the company's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $164.41, for a total transaction of $1,644,100.00. Following the completion of the sale, the insider directly owned 198,609 shares of the company's stock, valued at $32,653,305.69. This represents a 4.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CTO Chi Fung Cheng sold 27,500 shares of the company's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $178.99, for a total value of $4,922,225.00. Following the sale, the chief technology officer directly owned 6,024,870 shares of the company's stock, valued at approximately $1,078,391,481.30. This represents a 0.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 386,608 shares of company stock valued at $50,371,351 over the last 90 days. Insiders own 11.84% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

Several hedge funds have recently modified their holdings of CRDO. Savant Capital LLC raised its holdings in shares of Credo Technology Group by 0.7% during the third quarter. Savant Capital LLC now owns 9,914 shares of the company's stock valued at $1,444,000 after acquiring an additional 68 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Credo Technology Group by 16.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 552 shares of the company's stock valued at $80,000 after buying an additional 77 shares in the last quarter. Illinois Municipal Retirement Fund grew its holdings in shares of Credo Technology Group by 0.6% during the third quarter. Illinois Municipal Retirement Fund now owns 15,783 shares of the company's stock valued at $2,298,000 after buying an additional 91 shares in the last quarter. QRG Capital Management Inc. boosted its holdings in shares of Credo Technology Group by 1.7% during the first quarter. QRG Capital Management Inc. now owns 5,402 shares of the company's stock worth $507,000 after purchasing an additional 91 shares during the period. Finally, Bank of Nova Scotia boosted its holdings in shares of Credo Technology Group by 1.6% during the first quarter. Bank of Nova Scotia now owns 6,026 shares of the company's stock worth $566,000 after purchasing an additional 92 shares during the period. 80.46% of the stock is owned by hedge funds and other institutional investors.

Credo Technology Group Price Performance

The firm has a market capitalization of $42.24 billion, a price-to-earnings ratio of 127.21 and a beta of 3.22. The firm's fifty day moving average is $160.55 and its 200 day moving average is $145.28.

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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