Credo Technology Group (NASDAQ:CRDO) Trading Down 2.6% – Time to Sell?

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO) fell 2.6% on Tuesday . The stock traded as low as $119.88 and last traded at $120.83. 3,944,190 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 6,671,144 shares. The stock had previously closed at $124.05.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: TensorWave partnership reinforces Credo’s route into hyperscaler/AI-cluster builds by specifying Credo’s ZeroFlap active electrical cables & optics for next‑gen AMD-based AI systems — a near-term commercial validation that can drive revenue adoption in the AI infrastructure cycle. TensorWave Partners with Credo
• Positive Sentiment: Recent quarterly results showed outsized AI‑fueled revenue growth and margin expansion (strong top-line beat and materially higher year‑over‑year revenue), supporting a multi‑quarter growth narrative that underpins investor enthusiasm.
• Neutral Sentiment: Comparisons to Texas Instruments highlight Credo’s faster AI-driven revenue acceleration but also underscore TI’s far larger scale — useful context for investors weighing growth vs. durability. CRDO vs. TXN: Which Semiconductor Stock Is the Better Buy?
• Neutral Sentiment: Sector moves such as Marvell’s Celestial AI acquisition (photonics/AI fabric tech) elevate the competitive bar for ultra‑high‑bandwidth interconnects — a longer‑term factor that could influence product cycles and wins. How MRVL’s Celestial AI Acquisition Fills Its Critical Technology Gap?
• Negative Sentiment: A Seeking Alpha preview flags material risks: customer concentration (large share of revenue tied to a single Customer A), potential margin pressure, and strategic vulnerability if hyperscalers pivot faster to optical solutions — all reasons investors may trim positions. Credo Q3 Preview: Asymmetry Is The Art Of Alpha
• Negative Sentiment: Valuation tension: Credo trades at a high multiple and has a history of volatility, so after the recent run-up some investors appear to be taking profits — a likely contributor to today’s weakness.
• Negative Sentiment: Short‑interest reporting showed an odd spike entry with zero shares reported (data appears inconsistent), which may reflect reporting noise but can increase near‑term volatility if traders react to perceived shorting activity.

Analysts Set New Price Targets

A number of analysts have commented on the stock. Bank of America boosted their price target on shares of Credo Technology Group from $165.00 to $240.00 and gave the stock a “buy” rating in a research report on Tuesday, December 2nd. Wolfe Research set a $240.00 target price on Credo Technology Group in a report on Tuesday, December 2nd. New Street Research set a $240.00 target price on Credo Technology Group in a research report on Tuesday, December 2nd. The Goldman Sachs Group set a $165.00 price target on Credo Technology Group and gave the company a “buy” rating in a research report on Thursday, February 19th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Credo Technology Group in a research note on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $209.29.

Credo Technology Group Trading Down 7.3%

The stock has a 50-day moving average of $134.54 and a two-hundred day moving average of $143.36. The firm has a market cap of $20.68 billion, a price-to-earnings ratio of 100.42 and a beta of 2.65.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings data on Monday, December 1st. The company reported $0.67 EPS for the quarter, beating 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 business’s quarterly revenue was up 272.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.07 earnings per share. Sell-side analysts expect that Credo Technology Group Holding Ltd. will post 0.13 EPS for the current fiscal year.

Insider Activity at Credo Technology Group

In other news, CFO Daniel W. Fleming sold 3,902 shares of the stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $140.15, for a total value of $546,865.30. Following the completion of the sale, the chief financial officer owned 446,178 shares in the company, valued at $62,531,846.70. This represents a 0.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO William Joseph Brennan sold 18,016 shares of Credo Technology Group stock in a transaction on Thursday, January 29th. The shares were sold at an average price of $127.69, for a total value of $2,300,463.04. Following the transaction, the chief executive officer owned 252,625 shares in the company, valued at $32,257,686.25. This represents a 6.66% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 917,976 shares of company stock worth $136,567,647. Insiders own 11.84% of the company’s stock.

Institutional Trading of Credo Technology Group

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in Credo Technology Group by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 16,585,229 shares of the company’s stock valued at $2,386,449,000 after purchasing an additional 59,849 shares in the last quarter. JPMorgan Chase & Co. increased its stake in shares of Credo Technology Group by 18.3% in the third quarter. JPMorgan Chase & Co. now owns 7,699,456 shares of the company’s stock worth $1,121,118,000 after acquiring an additional 1,190,522 shares during the last quarter. State Street Corp raised its holdings in shares of Credo Technology Group by 23.4% during the fourth quarter. State Street Corp now owns 4,486,320 shares of the company’s stock worth $645,537,000 after acquiring an additional 849,654 shares in the last quarter. Geode Capital Management LLC boosted its position in Credo Technology Group by 5.0% during the fourth quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company’s stock valued at $555,117,000 after purchasing an additional 184,676 shares during the last quarter. Finally, Corient Private Wealth LLC grew its stake in Credo Technology Group by 239,024.5% in the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company’s stock valued at $517,835,000 after purchasing an additional 3,597,318 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, 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.