Wall Street Zen Downgrades Credo Technology Group (NASDAQ:CRDO) to Hold

Key Points

• Wall Street Zen has downgraded **Credo Technology Group** from a "buy" rating to a "hold" rating in a recent report, indicating a shift in investor sentiment.
• Despite the downgrade, analysts remain generally positive with one rating a "strong buy" and consensus ratings leaning towards **buy** with a target price of **$91.27**.
• Insider trading reports show significant stock sales by CEO William Joseph Brennan and CTO Chi Fung Cheng, indicating changes in executive holdings as they sold a combined total of over $10 million in shares.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Sunday.

CRDO has been the topic of a number of other reports. Stifel Nicolaus raised their price target on Credo Technology Group from $80.00 to $115.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Needham & Company LLC raised their target price on Credo Technology Group from $80.00 to $85.00 and gave the company a "buy" rating in a report on Tuesday, June 3rd. Noble Financial upgraded Credo Technology Group to a "strong-buy" rating in a report on Tuesday, June 3rd. Roth Capital set a $95.00 price objective on Credo Technology Group and gave the stock a "buy" rating in a report on Friday, June 13th. Finally, Susquehanna boosted their price target on Credo Technology Group from $90.00 to $115.00 and gave the company a "positive" rating in a report on Tuesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating and twelve have assigned a Buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Buy" and an average target price of $91.27.

Credo Technology Group Stock Performance

NASDAQ:CRDO traded down $8.76 during trading hours on Friday, hitting $123.06. The company's stock had a trading volume of 4,960,246 shares, compared to its average volume of 3,840,437. Credo Technology Group has a 52-week low of $24.08 and a 52-week high of $134.35. The company has a market capitalization of $21.29 billion, a PE ratio of 455.78, a PEG ratio of 2.37 and a beta of 2.59. The business's 50-day moving average is $105.59 and its two-hundred day moving average is $71.88.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last posted its quarterly earnings data on Monday, June 2nd. The company reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.08. The business had revenue of $170.00 million for the quarter, compared to analyst estimates of $159.59 million. Credo Technology Group had a return on equity of 8.77% and a net margin of 11.95%.The business's revenue for the quarter was up 179.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.07 earnings per share. Credo Technology Group has set its Q1 2026 guidance at EPS. As a group, analysts predict that Credo Technology Group will post 0.13 EPS for the current fiscal year.

Insiders Place Their Bets

In other Credo Technology Group news, Director Lip Bu Tan sold 171,473 shares of the company's stock in a transaction dated Monday, June 16th. The stock was sold at an average price of $77.90, for a total value of $13,357,746.70. Following the transaction, the director directly owned 613,725 shares of the company's stock, valued at $47,809,177.50. This represents a 21.84% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO William Joseph Brennan sold 150,000 shares of the company's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $106.87, for a total value of $16,030,500.00. Following the completion of the transaction, the chief executive officer directly owned 2,061,978 shares in the company, valued at approximately $220,363,588.86. The trade was a 6.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,274,583 shares of company stock valued at $113,118,257 in the last three months. Insiders own 16.04% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Operose Advisors LLC increased its holdings in shares of Credo Technology Group by 69.2% during the 1st quarter. Operose Advisors LLC now owns 616 shares of the company's stock valued at $25,000 after acquiring an additional 252 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Credo Technology Group in the 1st quarter worth approximately $25,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Credo Technology Group in the 1st quarter worth approximately $27,000. Pinpoint Asset Management Singapore Pte. Ltd. acquired a new stake in Credo Technology Group in the 2nd quarter valued at $27,000. Finally, Harbour Investments Inc. acquired a new stake in Credo Technology Group in the 1st quarter valued at $29,000. 80.46% of the stock is owned by institutional investors and hedge funds.

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.