Zacks Research Downgrades Credo Technology Group (NASDAQ:CRDO) to Hold

Key Points

• Zacks downgraded Credo Technology Group from a "strong‑buy" to a "hold," per the report released Monday.
• Credo posted a strong quarter, beating EPS and revenue estimates — revenue rose ~272% year‑over‑year with a net margin of about 26.6%.
• There has been substantial insider selling

Credo Technology Group (NASDAQ:CRDO - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

A number of other equities analysts also recently issued reports on the stock. KGI Securities upgraded shares of Credo Technology Group from a "hold" rating to an "outperform" rating and set a $230.00 price objective on the stock in a research note on Tuesday, December 2nd. Roth Mkm increased their target price on Credo Technology Group from $170.00 to $250.00 and gave the company a "buy" rating in a research report on Tuesday, December 2nd. JPMorgan Chase & Co. assumed coverage on Credo Technology Group in a report on Friday, October 17th. They issued an "overweight" rating and a $165.00 price target on the stock. Wolfe Research set a $240.00 price objective on Credo Technology Group in a research note on Tuesday, December 2nd. Finally, TD Cowen reaffirmed a "buy" rating on shares of Credo Technology Group in a research report on Tuesday, December 2nd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $216.54.

Credo Technology Group Trading Down 7.2%

Shares of Credo Technology Group stock opened at $111.31 on Monday. The stock's fifty day moving average price is $149.03 and its 200-day moving average price is $142.40. The firm has a market cap of $20.11 billion, a P/E ratio of 97.64 and a beta of 2.65. Credo Technology Group has a 12 month low of $29.09 and a 12 month high of $213.80.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings data on Monday, December 1st. The company reported $0.67 earnings per share for the quarter, topping analysts' consensus estimates of $0.49 by $0.18. The company had revenue of $268.03 million during the quarter, compared to analyst estimates of $234.99 million. Credo Technology Group had a net margin of 26.63% and a return on equity of 25.28%. The firm's revenue for the quarter was up 272.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.07 earnings per share. Analysts forecast that Credo Technology Group will post 0.13 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO William Joseph Brennan sold 50,000 shares of the business's stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $153.16, for a total transaction of $7,658,000.00. Following the sale, the chief executive officer owned 1,892,502 shares in the company, valued at approximately $289,855,606.32. The trade was a 2.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Yat Tung Lam sold 370,000 shares of the company's stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $153.19, for a total transaction of $56,680,300.00. Following the transaction, the chief operating officer owned 400,000 shares in the company, valued at approximately $61,276,000. This trade represents a 48.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 917,976 shares of company stock worth $136,567,647 in the last ninety days. 11.84% of the stock is owned by insiders.

Institutional Trading of Credo Technology Group

A number of institutional investors have recently bought and sold shares of CRDO. Plato Investment Management Ltd acquired a new position in Credo Technology Group during the 4th quarter valued at approximately $688,000. F m Investments LLC grew its holdings in shares of Credo Technology Group by 7.7% during the fourth quarter. F m Investments LLC now owns 46,386 shares of the company's stock valued at $6,674,000 after buying an additional 3,336 shares during the last quarter. Ethic Inc. increased its position in shares of Credo Technology Group by 20.1% in the 4th quarter. Ethic Inc. now owns 8,020 shares of the company's stock valued at $1,154,000 after acquiring an additional 1,342 shares during the period. Maxi Investments CY Ltd acquired a new position in shares of Credo Technology Group in the 4th quarter valued at $1,511,000. Finally, Diversify Wealth Management LLC raised its stake in Credo Technology Group by 7.7% in the 4th quarter. Diversify Wealth Management LLC now owns 3,444 shares of the company's stock worth $496,000 after acquiring an additional 247 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Product/market catalyst — Credo is sampling its Blue Heron 224G retimer (3nm) ahead of expected Q3 2026 production, positioning it for the AI scale‑up networking market where demand and ASPs could be higher. Credo Targets Scale-Up Networking Market With Blue Heron Retimer
• Positive Sentiment: Commercial traction/partnerships — Reports highlight deals and partnerships (including mentions of 3M/Blue Heron) that deepen Credo’s role in AI data‑center interconnects and could support future revenue growth. Credo Technology Deepens AI Role With Blue Heron And 3M Deal
• Positive Sentiment: Analyst bullishness — Bank of America and other firms have flagged Credo as a long‑term beneficiary of AI‑driven cloud connectivity and raised price targets (BofA moved its target significantly higher), supporting upside expectations. BofA sees Credo as long-term beneficiary
• Neutral Sentiment: Short‑interest data appears anomalous/rounded to zero in filings (no meaningful short covering/re‑shorting signal), so shorts are unlikely to explain the intraday move.
• Neutral Sentiment: Longer‑term bull case pieces reiterate growth drivers (AI interconnect TAM, product roadmap) but are not immediate catalysts. Bull Case Theory
• Negative Sentiment: Insider selling — Several executives disclosed sales in late January (CEO sales totaling multiple blocks including 50,000 and 18,016 shares, CTO ~27,500 shares, and a director 1,875 shares). Large insider sales in a high‑multiple stock can trigger short‑term selling/negative sentiment. SEC filings: CEO Form 4 CEO Form 4, CTO Form 4 CTO Form 4, Director sale Director sale disclosure

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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