Credo Technology Group (NASDAQ:CRDO) Shares Down 2.3% – Should You Sell?

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO) traded down 2.3% during mid-day trading on Tuesday. The company traded as low as $126.89 and last traded at $129.80. Approximately 5,451,893 shares were traded during mid-day trading, a decline of 29% from the average session volume of 7,685,972 shares. The stock had previously closed at $132.89.

Trending Headlines about Credo Technology Group

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

• Positive Sentiment: Credo’s revenue more than doubled year over year in its latest reported quarter, and it has continued a multi-quarter streak of earnings beats. Analysts have raised estimates, fueling speculation that the company’s next growth phase may be underestimated. Article: Wall Street May Be Underestimating This AI Chip Stock’s Next Growth Phase
• Positive Sentiment: Credo and Oracle advanced two Open Compute Project optical telemetry standards intended to improve monitoring and reliability in AI data-center networks. The development reinforces the company’s role in AI infrastructure. Article: Credo Helped Set New AI Network Standards
• Positive Sentiment: Credo recently rebounded as investors bought after a steep selloff, with the move also supported by a broader technology rally and renewed attention to its growth and AI-connectivity exposure. Coverage did not identify a single new catalyst for the rebound. Article: Credo Technology Advances Amid Broad Tech Rally
• Neutral Sentiment: Recent commentary frames the key question as whether strong growth can translate into a sustained recovery; estimates of substantial upside depend on continued AI-infrastructure spending and execution.
• Negative Sentiment: Articles flag reliance on a small number of large hyperscaler customers and the risk that the AI trade or demand weakens. They also question whether the valuation is attractive even after the share-price decline. Article: Is Credo Technology Stock a Buy Right Now?
• Negative Sentiment: Reported insider transactions show sales and no purchases over the cited six-month period. While such sales do not necessarily signal a change in company outlook, they may add to investor caution.

Analyst Upgrades and Downgrades

CRDO has been the topic of a number of recent research reports. TD Cowen raised their target price on Credo Technology Group from $260.00 to $300.00 and gave the stock a “buy” rating in a report on Tuesday, August 18th. Evercore set a $292.00 price target on shares of Credo Technology Group in a research note on Wednesday, September 2nd. Zacks Research lowered Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 3rd. Weiss Ratings downgraded Credo Technology Group from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, October 6th. Finally, Mizuho decreased their target price on Credo Technology Group from $290.00 to $245.00 and set an “outperform” rating for the company in a research report on Monday, September 21st. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $262.67.

Credo Technology Group Stock Performance

The firm has a market cap of $24.40 billion, a price-to-earnings ratio of 46.19, a price-to-earnings-growth ratio of 0.54 and a beta of 3.29. The stock’s 50 day simple moving average is $176.68 and its 200-day simple moving average is $180.25.

Credo Technology Group (NASDAQ:CRDO) last issued its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 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 company had revenue of $479.00 million during the quarter, compared to analysts’ expectations of $473.30 million. During the same quarter in the previous year, the firm posted $0.52 EPS. The firm’s revenue was up 114.7% compared to the same quarter last year. On average, analysts expect that Credo Technology Group Holding Ltd. will post 5.02 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider James Laufman sold 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $205.00, for a total transaction of $1,025,000.00. Following the sale, the insider owned 164,223 shares of the company’s stock, valued at $33,665,715. This trade represents a 2.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $164.12, for a total transaction of $4,513,300.00. Following the sale, the chief technology officer directly owned 5,552,397 shares in the company, valued at $911,259,395.64. The trade was a 0.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 352,538 shares of company stock valued at $67,200,077 in the last 90 days. 9.06% of the stock is currently owned by insiders.

Institutional Trading of Credo Technology Group

A number of hedge funds have recently added to or reduced their stakes in CRDO. Bank of America Corp DE raised its position in shares of Credo Technology Group by 13.7% in the second quarter. Bank of America Corp DE now owns 2,182,764 shares of the company’s stock worth $593,603,000 after acquiring an additional 262,479 shares during the period. Atreides Management LP raised its holdings in Credo Technology Group by 3.5% in the 2nd quarter. Atreides Management LP now owns 1,129,285 shares of the company’s stock worth $307,109,000 after purchasing an additional 38,052 shares during the period. The Manufacturers Life Insurance Company raised its holdings in Credo Technology Group by 192.1% in the 1st quarter. The Manufacturers Life Insurance Company now owns 1,047,084 shares of the company’s stock worth $98,290,000 after purchasing an additional 688,596 shares during the period. H&H International Investment LLC boosted its position in Credo Technology Group by 431.6% during the first quarter. H&H International Investment LLC now owns 751,200 shares of the company’s stock worth $70,515,000 after purchasing an additional 609,900 shares in the last quarter. Finally, Pictet Asset Management Holding SA boosted its position in Credo Technology Group by 222.5% during the third quarter. Pictet Asset Management Holding SA now owns 740,487 shares of the company’s stock worth $144,170,000 after purchasing an additional 510,905 shares in the last quarter. 80.46% of the stock is owned by hedge funds and other institutional investors.

About Credo Technology Group

Credo Technology Group designs and supplies high-speed connectivity solutions for data infrastructure, including data centers and networking systems. Its products help move data between processors, servers, switches and other equipment used in demanding, high-bandwidth environments. The company’s offerings include active electrical cables, semiconductor and optical digital signal processing products, retimers, and other connectivity components. These solutions are used in applications such as cloud computing and artificial intelligence infrastructure.