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

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price gapped down prior to trading on Wednesday after Bank of America lowered their price target on the stock from $340.00 to $275.00. The stock had previously closed at $206.63, but opened at $188.64. Bank of America currently has a buy rating on the stock. Credo Technology Group shares last traded at $169.56, with a volume of 4,818,274 shares changing hands.

Other research analysts also recently issued reports about the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Credo Technology Group in a report on Friday, August 21st. The Goldman Sachs Group reissued a “buy” rating and issued a $250.00 price objective on shares of Credo Technology Group in a research note on Tuesday, June 2nd. Rosenblatt Securities increased their target price on Credo Technology Group from $215.00 to $235.00 and gave the stock a “neutral” rating in a report on Wednesday. Roth Capital lifted their price target on Credo Technology Group from $200.00 to $300.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Finally, Jefferies Financial Group upped their price target on shares of Credo Technology Group from $225.00 to $270.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $265.89.

Insider Buying and Selling

In other Credo Technology Group news, COO Yat Tung Lam sold 55,441 shares of Credo Technology Group stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $213.02, for a total value of $11,810,041.82. Following the transaction, the chief operating officer owned 2,529,169 shares of the company’s stock, valued at approximately $538,763,580.38. The trade was a 2.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO William Joseph Brennan sold 54,984 shares of the company’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $218.57, for a total transaction of $12,017,852.88. Following the completion of the transaction, the chief executive officer directly owned 367,327 shares of the company’s stock, valued at approximately $80,286,662.39. The trade was a 13.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 435,076 shares of company stock worth $101,043,506 in the last ninety days. 9.06% of the stock is currently owned by corporate insiders.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Credo reported fiscal Q1 2027 earnings of $1.20 per share, above the $1.17 consensus estimate, while revenue of $479 million exceeded expectations of $473.3 million. Revenue increased 114.7% year over year, supported by optical products and strong active electrical cable demand. Credo Q1 earnings and revenue beat estimates
• Positive Sentiment: Management guided fiscal Q2 revenue to $525 million-$535 million, ahead of the $513.8 million analyst consensus. The outlook reinforces expectations for continued AI infrastructure and hyperscale connectivity demand. Credo Q2 revenue guidance
• Positive Sentiment: Analysts remain constructive overall. Bank of America maintained a Buy rating with a $275 price target, while Rosenblatt raised its target to $235, although it retained a Neutral rating. Analyst forecasts following Q1 results

Hedge Funds Weigh In On Credo Technology Group

Several hedge funds have recently modified their holdings of the stock. California State Teachers Retirement System increased its position in shares of Credo Technology Group by 28,062.9% during the 2nd quarter. California State Teachers Retirement System now owns 67,840,375 shares of the company’s stock worth $18,449,190,000 after purchasing an additional 67,599,489 shares during the last quarter. State Street Corp boosted its holdings in shares of Credo Technology Group by 23.4% in the 4th quarter. State Street Corp now owns 4,486,320 shares of the company’s stock valued at $645,537,000 after buying an additional 849,654 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Credo Technology Group by 5.0% in the fourth quarter. Geode Capital Management LLC now owns 3,862,041 shares of the company’s stock valued at $555,117,000 after buying an additional 184,676 shares in the last quarter. Corient Private Wealth LLC grew its stake in shares of 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 buying an additional 3,597,318 shares in the last quarter. Finally, Alliancebernstein L.P. increased its holdings in Credo Technology Group by 66.0% during the second quarter. Alliancebernstein L.P. now owns 3,064,891 shares of the company’s stock worth $283,778,000 after buying an additional 1,218,504 shares during the last quarter. Institutional investors own 80.46% of the company’s stock.

Credo Technology Group Price Performance

The stock has a market capitalization of $32.20 billion, a P/E ratio of 68.84, a price-to-earnings-growth ratio of 1.02 and a beta of 3.22. The company’s 50-day simple moving average is $235.81 and its 200-day simple moving average is $188.53.

Credo Technology Group (NASDAQ:CRDO) last released its quarterly earnings data on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.17 by $0.03. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The company had revenue of $479.00 million during the quarter, compared to analysts’ expectations of $473.30 million. During the same period last year, the firm posted $0.52 earnings per share. The business’s revenue was up 114.7% on a year-over-year basis. On average, analysts forecast that Credo Technology Group Holding Ltd. will post 4.89 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.