Credo Technology Group (NASDAQ:CRDO) Stock Price Down 17.7% - Should You Sell?

Key Points

• Credo shares plunged 17.7% to $112.33 on trading volume more than double average, amid a broader AI-chip sell-off and investor concerns that political or policy pressures could slow data-center expansion. The article notes these are market concerns, not changes to Credo’s guidance or analyst estimates.
• Credo’s latest quarter beat estimates: EPS was $1.20 versus $1.17 expected, while revenue rose 114.7% year over year to $479 million. The company and Oracle also won approval for two optical telemetry standards aimed at improving AI data-center connectivity.
• Analysts’ consensus remains Moderate Buy, with an average price target of $262.67, though some firms recently downgraded the stock to Hold. Insiders have sold shares worth about $67.2 million over the past 90 days.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report)'s stock price traded down 17.7% during mid-day trading on Thursday. The stock traded as low as $110.83 and last traded at $112.33. 16,247,297 shares were traded during mid-day trading, an increase of 112% from the average session volume of 7,669,491 shares. The stock had previously closed at $136.50.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Credo and Oracle secured Open Compute Project approval for two optical telemetry standards. The approval supports more reliable AI data-center connectivity and could strengthen Credo’s position in next-generation infrastructure. Credo and Oracle Drive AI Optical Innovation
• Neutral Sentiment: Recent reports describe fears of a slower data-center buildout as a market concern, not a change to Credo’s guidance or analyst estimates. The potential impact on the company’s actual demand remains uncertain. Credo Sinks as AI Event Fears Rise
• Negative Sentiment: CRDO shares declined sharply for a second session amid a broader AI-hardware sell-off following Democratic election victories. Investors are concerned that policy or political pressure could constrain data-center expansion, creating a perceived risk to Credo’s growth outlook. Credo Sinks as AI Event Fears Rise
• Negative Sentiment: The pressure follows a broad decline in chip stocks as investors weigh the election results’ possible implications for the semiconductor and AI-data-center sectors. Chip Stocks Feeling Blue After Democratic Party Victories

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Zacks Research cut Credo Technology Group from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. Barclays increased their price target on Credo Technology Group from $260.00 to $300.00 and gave the company an "overweight" rating in a report on Monday, July 20th. Susquehanna lifted their price objective on shares of Credo Technology Group from $235.00 to $250.00 and gave the stock a "positive" rating in a research note on Tuesday, July 21st. Mizuho cut their price objective on shares of Credo Technology Group from $290.00 to $245.00 and set an "outperform" rating on the stock in a research report on Monday, September 21st. Finally, Wall Street Zen downgraded shares of Credo Technology Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $262.67.

Credo Technology Group Stock Down 17.7%

The business has a 50 day moving average price of $183.35 and a 200 day moving average price of $180.64. The stock has a market cap of $21.11 billion, a P/E ratio of 39.98, a PEG ratio of 0.60 and a beta of 3.29.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%. The firm had revenue of $479.00 million during the quarter, compared to analyst estimates of $473.30 million. During the same period last year, the company earned $0.52 EPS. Credo Technology Group's quarterly revenue was up 114.7% compared to the same quarter last year. On average, research analysts expect that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider James Laufman sold 5,000 shares of Credo Technology Group stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $205.00, for a total transaction of $1,025,000.00. Following the completion of the sale, the insider directly owned 164,223 shares in the company, valued at approximately $33,665,715. This trade represents a 2.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO William Brennan sold 16,666 shares of the business's stock in a transaction on Monday, October 19th. The shares were sold at an average price of $174.87, for a total transaction of $2,914,383.42. Following the sale, the chief executive officer directly owned 1,584,164 shares of the company's stock, valued at $277,022,758.68. This represents a 1.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 352,538 shares of company stock valued at $67,200,077. Insiders own 9.06% of the company's stock.

Institutional Investors Weigh In On Credo Technology Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CRDO. Moneco Advisors LLC increased its holdings in shares of Credo Technology Group by 4.4% during the third quarter. Moneco Advisors LLC now owns 3,777 shares of the company's stock valued at $736,000 after acquiring an additional 160 shares in the last quarter. MKP Capital Management L.L.C. boosted its stake in Credo Technology Group by 91.4% in the 3rd quarter. MKP Capital Management L.L.C. now owns 20,000 shares of the company's stock worth $3,896,000 after purchasing an additional 9,550 shares in the last quarter. Vestor Capital LLC boosted its stake in Credo Technology Group by 304.0% in the 3rd quarter. Vestor Capital LLC now owns 6,788 shares of the company's stock worth $1,322,000 after purchasing an additional 5,108 shares in the last quarter. Kestra Investment Management LLC acquired a new stake in Credo Technology Group in the 3rd quarter worth approximately $202,000. Finally, AlphaCore Capital LLC purchased a new stake in Credo Technology Group during the 3rd quarter worth approximately $318,000. Institutional investors own 80.46% of the company's stock.

About Credo Technology Group

Credo Technology Group Holding Ltd. is a fabless semiconductor and connectivity solutions company that develops high-speed data-infrastructure technologies. Its products are designed to help data centers and communications networks move large volumes of information with lower power consumption and improved signal integrity.

The company's portfolio includes serializer/deserializer (SerDes) intellectual property, application-specific integrated circuits, active electrical cables, optical digital signal processors and related connectivity platforms.

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