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

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s share price 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.

A number of other analysts also recently issued reports on the stock. New Street Research set a $240.00 price target on shares of Credo Technology Group in a report on Tuesday, December 2nd. Weiss Ratings reiterated a “hold (c)” rating on shares of Credo Technology Group in a research report on Monday, December 29th. Zacks Research lowered shares of Credo Technology Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 2nd. TD Cowen restated a “buy” rating on shares of Credo Technology Group in a research note on Tuesday, December 2nd. Finally, Wolfe Research set a $240.00 price target on Credo Technology Group in a report on Tuesday, December 2nd. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Credo Technology Group presently has an average rating of “Moderate Buy” and a consensus price target of $203.93.

Insiders Place Their Bets

In related news, Director Sylvia Acevedo sold 2,200 shares of Credo Technology Group stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $159.18, for a total value of $350,196.00. Following the sale, the director directly owned 18,545 shares in the company, valued at approximately $2,951,993.10. The trade was a 10.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO William Joseph Brennan sold 18,016 shares of the firm’s stock in a transaction that occurred 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 completion of the transaction, the chief executive officer owned 252,625 shares in the company, valued at approximately $32,257,686.25. This trade represents a 6.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 917,976 shares of company stock valued at $136,567,647. 11.84% of the stock is owned by company insiders.

Credo Technology Group News Summary

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

• Positive Sentiment: Credo posted a big beat for Q3 FY2026: $1.07 EPS (vs. ~$0.78 est.) and $407.0M revenue, up 201.5% year-over-year and a 52% sequential increase — a clear operational outperformance that supports the company’s growth story. Q3 Results
• Positive Sentiment: Management updated FYQ4 revenue guidance to $425M–$435M vs. consensus ~$416.3M — another beat on near-term revenue expectations that signals sustained demand. (Guidance release tied to the earnings report.)
• Positive Sentiment: Company projects >50% revenue growth for fiscal 2027 and acceleration of its ZeroFlap optics ramp — positive for long-term AI-infrastructure positioning if execution continues. Growth Guidance
• Positive Sentiment: Needham reaffirmed a “buy” with a $220 target (large upside from current levels), signaling continued analyst conviction among some houses. Needham Reaffirmation
• Neutral Sentiment: Mizuho trimmed its price target from $225 to $200 but kept an “outperform” rating — a modest tone-down of optimism but still a bullish stance. Mizuho Note
• Neutral Sentiment: Stifel also cut its target (to $200) while maintaining a Buy rating — analysts are scaling back targets after the run-up but largely retain positive views. Stifel Coverage
• Negative Sentiment: Rosenblatt sharply cut its target from $170 to $125 and moved to a “neutral” rating — reduces near-term upside implied by some broker analyses and may pressure sentiment. Rosenblatt Lowering
• Negative Sentiment: Despite the beat, shares slipped in after-hours and into premarket trading — partly driven by analyst target trims and broader market weakness tied to geopolitical headlines (U.S.-Iran tensions). Market Context
• Negative Sentiment: Valuation and execution risk: CRDO trades at a high P/E (~100) and needs sustained execution on ZeroFlap and AI-infra growth to justify the premium — any execution slip or macro sell-off could prompt sharper declines.

Institutional Trading of Credo Technology Group

A number of hedge funds have recently bought and sold shares of CRDO. Reflection Asset Management purchased a new stake in shares of Credo Technology Group in the fourth quarter valued at approximately $25,000. Clearwave Capital LLC acquired a new position in Credo Technology Group during the fourth quarter worth $708,000. BDFS Capital LLC purchased a new stake in Credo Technology Group in the 4th quarter valued at $775,000. Sit Investment Associates Inc. purchased a new stake in Credo Technology Group in the 4th quarter valued at $1,163,000. Finally, Mariner Investment Group LLC acquired a new stake in shares of Credo Technology Group in the 4th quarter worth $288,000. Institutional investors and hedge funds own 80.46% of the company’s stock.

Credo Technology Group Trading Down 18.6%

The firm has a fifty day moving average price of $133.07 and a 200 day moving average price of $143.58. The firm has a market cap of $16.80 billion, a PE ratio of 82.36 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 (EPS) for the quarter, topping the consensus estimate of $0.78 by $0.29. The firm had revenue of $407.01 million during the quarter, compared to analysts’ expectations of $385.94 million. Credo Technology Group had a net margin of 26.63% and a return on equity of 25.28%. Credo Technology Group’s revenue was up 201.5% compared to the same quarter last year. During the same period last year, the business earned $0.25 earnings per share. As a group, equities analysts predict that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current 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.