Credo Technology Group (NASDAQ:CRDO) Shares Gap Down Following Analyst Downgrade

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares gapped down prior to trading on Tuesday after Susquehanna lowered their price target on the stock from $230.00 to $170.00. The stock had previously closed at $114.22, but opened at $101.00. Susquehanna currently has a positive rating on the stock. Credo Technology Group shares last traded at $94.0860, with a volume of 5,275,507 shares traded.

Several other brokerages have also recently issued reports on CRDO. TD Cowen reaffirmed a “buy” rating on shares of Credo Technology Group in a research report on Tuesday, December 2nd. Barclays restated an “overweight” rating and set a $260.00 price objective on shares of Credo Technology Group in a research note on Thursday, January 15th. New Street Research set a $240.00 target price on Credo Technology Group in a research note on Tuesday, December 2nd. Roth Mkm decreased their price target on shares of 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. Finally, Rosenblatt Securities lowered their price target on shares of Credo Technology Group from $170.00 to $125.00 and set a “neutral” rating on the stock in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $206.33.

Insiders Place Their Bets

In related news, CFO Daniel W. Fleming sold 3,902 shares of the stock in a transaction that occurred on Thursday, January 8th. The shares were sold at an average price of $140.15, for a total value of $546,865.30. Following the completion of the transaction, the chief financial officer directly owned 446,178 shares of the company’s stock, valued at $62,531,846.70. This trade represents a 0.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction that occurred on Thursday, January 29th. The stock was sold at an average price of $127.37, for a total transaction of $3,502,675.00. Following the completion of the sale, the chief technology officer owned 6,299,870 shares of the company’s stock, valued at $802,414,441.90. This trade represents a 0.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 917,976 shares of company stock valued at $136,567,647. 11.84% of the stock is currently owned by corporate insiders.

Key Credo Technology Group News

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

• Positive Sentiment: Q3 earnings beat and raised revenue outlook: Credo reported record Q3 revenue (~$407M) and topped EPS/revenue estimates; management gave Q4 revenue guidance above Street consensus, supporting continued high growth expectations. CRDO Q3 Earnings Highlights
• Positive Sentiment: Product ramps and strategic deals: Credo highlighted accelerating ZeroFlap optics ramp, a TensorWave partnership and the CoMira acquisition — moves that expand its AI interconnect addressable market. These operational catalysts underpin bullish long‑term growth narratives. Credo & TensorWave Team Up
• Positive Sentiment: Analyst buy reiterations: Several firms (e.g., Needham, William Blair, BofA) reiterated Buy ratings or remained constructive, providing support for upside expectations despite some PT cuts. Wall Street Bullish on Credo
• Neutral Sentiment: Mixed price-target moves: Several firms adjusted targets — some trimming numbers (Susquehanna, Mizuho, Rosenblatt, Stifel) even while keeping positive/outperform stances. That yields divergent analyst views and wider modeled outcomes. Analysts Slash Forecasts
• Neutral Sentiment: Short-interest data appears noisy: recent feeds show zero or malformed short‑interest figures (likely a reporting/data issue) — not meaningful evidence of a short squeeze or new short pressure. (No reliable link available)
• Neutral Sentiment: Investor commentary split: multiple independent pieces frame the post‑earnings pullback as either a buying opportunity or a warning sign — reinforcing two‑sided sentiment that will amplify intraday moves. Pullback May Be The Opportunity
• Negative Sentiment: Post‑earnings sell‑off and margin/growth concerns: Despite the beat, shares fell sharply in post‑earnings trade as investors focused on guidance that implies lower gross margins and potential deceleration in AEC demand beyond FY26 — prompting fear that growth could slow into FY27. Beat, Raise, Drop 10%
• Negative Sentiment: Analysts trimming forecasts: several firms lowered targets/forecasts after the print, reflecting higher model uncertainty and pressuring near‑term sentiment. Analysts Slash Forecasts
• Negative Sentiment: Macro/sector volatility amplified the reaction: broader tech/A.I. swings (including geopolitical headlines and Nvidia‑led moves) increased risk‑off flows, magnifying Credo’s intraday volatility independent of fundamentals. Dow Jones Futures Fall
• Negative Sentiment: Customer concentration risk: commentary and transcripts note a high percentage of revenue from a few hyperscalers, which increases sensitivity to customer ordering patterns and can exacerbate perceived growth risk. Credo Expects >50% Revenue Growth

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CRDO. Atlantic Union Bankshares Corp purchased a new stake in Credo Technology Group during the 3rd quarter valued at about $25,000. Crewe Advisors LLC increased its holdings in Credo Technology Group by 163.1% in the 4th quarter. Crewe Advisors LLC now owns 171 shares of the company’s stock worth $25,000 after buying an additional 106 shares during the period. Reflection Asset Management acquired a new stake in Credo Technology Group during the 4th quarter valued at approximately $25,000. Acumen Wealth Advisors LLC purchased a new stake in shares of Credo Technology Group in the 4th quarter valued at $25,000. Finally, First Horizon Corp purchased a new stake in shares of Credo Technology Group in the 3rd quarter valued at $26,000. Hedge funds and other institutional investors own 80.46% of the company’s stock.

Credo Technology Group Stock Up 5.4%

The stock’s 50 day moving average price is $131.11 and its two-hundred day moving average price is $143.15. The stock has a market cap of $18.52 billion, a price-to-earnings ratio of 56.97 and a beta of 2.67.

Credo Technology Group (NASDAQ:CRDO) last released its quarterly earnings data on Monday, March 2nd. The company reported $1.07 earnings per share for the quarter, beating analysts’ consensus estimates of $0.78 by $0.29. Credo Technology Group had a return on equity of 37.17% and a net margin of 31.81%.The business had revenue of $407.01 million during the quarter, compared to analyst estimates of $385.94 million. During the same quarter last year, the business posted $0.25 EPS. The company’s revenue was up 201.5% on a year-over-year basis. On average, analysts predict that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current fiscal year.

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.