Credo Technology Group (NASDAQ:CRDO) Trading 1.7% Higher After Better-Than-Expected Earnings

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO) were up 1.7% during mid-day trading on Monday after the company announced better than expected quarterly earnings. The stock traded as high as $115.69 and last traded at $114.22. Approximately 11,357,955 shares were traded during mid-day trading, an increase of 67% from the average daily volume of 6,787,155 shares. The stock had previously closed at $112.27.

The company reported $1.07 earnings per share for the quarter, beating analysts’ consensus estimates of $0.78 by $0.29. The business had revenue of $407.01 million for the quarter, compared to analysts’ expectations of $385.94 million. Credo Technology Group had a net margin of 31.81% and a return on equity of 37.17%. The company’s revenue was up 201.5% compared to the same quarter last year. During the same period last year, the business earned $0.25 EPS.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Strong beat: CRDO reported Q3 revenue of $407M (≈+201% YoY) and $1.07 EPS, materially above estimates — evidence of robust demand and execution. Credo quarterly earnings transcript
• Positive Sentiment: Guidance beat: management gave Q4 revenue guidance (~$425M–$435M) above Street consensus and projected >50% revenue growth for FY2027, supporting the multi-quarter growth narrative. BusinessWire: Q3 results press release
• Positive Sentiment: Product & partnerships: Credo is accelerating ZeroFlap optics ramp and expanding partnerships (TensorWave, CoMira), which lengthens the TAM for optical interconnects in AI datacenters. These are constructive for medium-term revenue growth. Zacks: Credo & TensorWave team-up
• Neutral Sentiment: Mixed analyst views: several firms reiterated buys but some lowered price targets — the consensus view still bullish on long-term upside but with nearer-term model adjustments. Benzinga: analysts revise forecasts
• Neutral Sentiment: Short-interest data currently shows no meaningful days-to-cover signal; not a clear driver of today’s volume spike.
• Negative Sentiment: Trade hangover / profit-taking: CRDO was caught in a sector-wide pullback after a recent surge — heavy selling pressure drove a double-digit drop as traders rotated out of high-flyers. 247WallSt: AI stocks diverge
• Negative Sentiment: Deceleration & margin concerns: despite beat and guidance, commentary and Q4 gross-margin guidance were viewed as conservative — analysts and investors fear AEC growth could slow into FY27, prompting re-rating. Seeking Alpha: Is AI Broken?
• Negative Sentiment: Macro risk-off: broader market volatility (geopolitical headlines, futures weakness) amplified selling in tech/AI names, increasing intraday volume and downside pressure on CRDO. Benzinga: futures plunge, market in focus

Analyst Ratings Changes

A number of research firms have recently weighed in on CRDO. Roth Mkm lowered their price objective on Credo Technology Group from $250.00 to $200.00 and set a “buy” rating for the company in a research report on Tuesday, February 10th. Rosenblatt Securities lowered their price target on Credo Technology Group from $170.00 to $125.00 and set a “neutral” rating for the company in a report on Tuesday. Mizuho dropped their price target on Credo Technology Group from $225.00 to $200.00 and set an “outperform” rating on the stock in a research note on Tuesday. Wolfe Research set a $240.00 price objective on shares of Credo Technology Group in a research report on Tuesday, December 2nd. Finally, Stifel Nicolaus set a $200.00 target price on shares of Credo Technology Group in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $206.33.

Insiders Place Their Bets

In other Credo Technology Group news, COO Yat Tung Lam sold 370,000 shares of Credo Technology Group stock in a transaction that occurred on 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 completion of the sale, the chief operating officer directly owned 400,000 shares in the company, valued at approximately $61,276,000. The trade was a 48.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CTO Chi Fung Cheng sold 55,000 shares of the company’s stock in a transaction on Monday, December 8th. The shares were sold at an average price of $174.70, for a total transaction of $9,608,500.00. Following the completion of the sale, the chief technology officer directly owned 6,613,961 shares in the company, valued at $1,155,458,986.70. This trade represents a 0.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 917,976 shares of company stock valued at $136,567,647. 11.84% of the stock is owned by insiders.

Hedge Funds Weigh In On Credo Technology Group

A number of institutional investors have recently modified their holdings of CRDO. Savant Capital LLC raised its position in 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 in the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in shares of Credo Technology Group by 16.2% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 552 shares of the company’s stock worth $80,000 after purchasing an additional 77 shares during the period. Illinois Municipal Retirement Fund increased its holdings in shares of Credo Technology Group by 0.6% during the 3rd quarter. Illinois Municipal Retirement Fund now owns 15,783 shares of the company’s stock valued at $2,298,000 after purchasing an additional 91 shares in the last quarter. Mark Sheptoff Financial Planning LLC lifted its stake in shares of Credo Technology Group by 2.0% in the 4th quarter. Mark Sheptoff Financial Planning LLC now owns 5,150 shares of the company’s stock valued at $741,000 after purchasing an additional 100 shares during the period. Finally, Versant Capital Management Inc boosted its holdings in Credo Technology Group by 18.0% during the third quarter. Versant Capital Management Inc now owns 663 shares of the company’s stock worth $97,000 after buying an additional 101 shares in the last quarter. Hedge funds and other institutional investors own 80.46% of the company’s stock.

Credo Technology Group Stock Down 14.8%

The company’s 50-day moving average is $132.06 and its 200 day moving average is $143.44. The company has a market cap of $17.58 billion, a price-to-earnings ratio of 54.06 and a beta of 2.67.

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.