Credo Technology Group (NASDAQ:CRDO) Stock Price Down 8.6% – Here’s What Happened

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price fell 8.6% during trading on Tuesday . The company traded as low as $206.12 and last traded at $206.63. Approximately 8,436,958 shares changed hands during trading, an increase of 17% from the average session volume of 7,198,641 shares. The stock had previously closed at $226.19.

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 revenue of $479 million, up 114.7% year over year and above the $473.3 million consensus estimate. Adjusted earnings of $1.20 per share also exceeded expectations of $1.17. Credo Q1 earnings and revenue beat estimates
• Positive Sentiment: Management guided fiscal Q2 revenue to $525 million-$535 million, ahead of the roughly $513.8 million analyst estimate, signaling that AI infrastructure demand remains strong. Credo Q2 revenue guidance
• Positive Sentiment: Optical products are emerging as a second growth engine, with fiscal 2027 optical revenue expected to exceed $600 million. Expanding hyperscaler adoption, the transition to 1.6T connectivity and broader Neocloud demand could extend Credo’s addressable market. Credo optics growth engine
• Positive Sentiment: Credo’s Toucan Gen6x16 PCIe retimer achieved PCI Express 6.x compliance and was added to the PCI-SIG Integrators List, supporting its positioning in next-generation AI and high-performance-computing infrastructure. Credo PCIe 6.x compliance
• Positive Sentiment: Analysts remain constructive overall: Stifel initiated coverage with a Buy rating, while JPMorgan maintained Overweight with a $310 price target and Bank of America retained Buy despite lowering its target to $275. Stifel Buy rating
• Neutral Sentiment: Rosenblatt raised its target to $235 but kept a Neutral rating, illustrating that analysts see long-term growth while remaining cautious about the stock’s valuation and execution risks. Analyst forecast revisions
• Negative Sentiment: The earnings beat was overshadowed by shrinking margins, rising costs and concerns that the shares—after a major year-to-date and multiyear rally—were priced for near-perfect execution. Profit-taking and elevated expectations intensified the selloff. Why Credo stock is sinking
• Negative Sentiment: Shares broke below the 200-day moving average, a bearish technical signal, while customer concentration and the risk that optical-product ramps fail to meet expectations remain key investor concerns. Credo breaks below 200-day moving average

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Wall Street Zen cut Credo Technology Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. JPMorgan Chase & Co. cut their target price on Credo Technology Group from $335.00 to $310.00 and set an “overweight” rating on the stock in a research report on Wednesday. The Goldman Sachs Group reiterated a “buy” rating and set a $250.00 target price on shares of Credo Technology Group in a report on Tuesday, June 2nd. Bank of America lowered their price objective on shares of Credo Technology Group from $340.00 to $275.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Evercore set a $292.00 price target on shares of Credo Technology Group in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $267.39.

Credo Technology Group Stock Performance

The stock’s fifty day moving average is $233.75 and its two-hundred day moving average is $188.83. The firm has a market cap of $31.10 billion, a price-to-earnings ratio of 58.90, a PEG ratio of 0.93 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO) last announced its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.17 by $0.03. Credo Technology Group had a net margin of 33.83% and a return on equity of 32.91%. The business had revenue of $479.00 million for the quarter, compared to analyst estimates of $473.30 million. During the same quarter in the previous year, the firm posted $0.52 earnings per share. Credo Technology Group’s revenue was up 114.7% compared to the same quarter last year. Sell-side analysts predict that Credo Technology Group Holding Ltd. will post 4.89 earnings per share for the current year.

Insider Transactions at Credo Technology Group

In other Credo Technology Group news, CFO Daniel W. Fleming sold 40,000 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $249.48, for a total transaction of $9,979,200.00. Following the transaction, the chief financial officer owned 501,873 shares in the company, valued at approximately $125,207,276.04. This represents a 7.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Chi Fung Cheng sold 27,500 shares of the stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $243.06, for a total value of $6,684,150.00. Following the completion of the transaction, the chief technology officer directly owned 5,882,370 shares of the company’s stock, valued at approximately $1,429,768,852.20. The trade was a 0.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 435,076 shares of company stock worth $101,043,506 in the last quarter. 9.06% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Credo Technology Group

Several hedge funds and other institutional investors have recently modified their holdings of the stock. City Center Advisors LLC boosted its holdings in shares of Credo Technology Group by 2.1% in the second quarter. City Center Advisors LLC now owns 2,595 shares of the company’s stock valued at $706,000 after buying an additional 53 shares during the period. Versant Capital Management Inc lifted its holdings in shares of Credo Technology Group by 8.0% in the 2nd quarter. Versant Capital Management Inc now owns 755 shares of the company’s stock worth $205,000 after acquiring an additional 56 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in Credo Technology Group by 16.2% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 552 shares of the company’s stock worth $80,000 after acquiring an additional 77 shares in the last quarter. QRG Capital Management Inc. raised its position in shares of Credo Technology Group by 1.7% during the 1st quarter. QRG Capital Management Inc. now owns 5,402 shares of the company’s stock valued at $507,000 after buying an additional 91 shares in the last quarter. Finally, Bank of Nova Scotia boosted its position in Credo Technology Group by 1.6% during the first quarter. Bank of Nova Scotia now owns 6,026 shares of the company’s stock valued at $566,000 after purchasing an additional 92 shares in the last quarter. Institutional investors and hedge funds own 80.46% of the company’s stock.

Credo Technology Group Company Profile

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.