Credo Technology Group (NASDAQ:CRDO) Shares Down 20% Following Analyst Downgrade

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO) dropped 20% on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $335.00 to $310.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Credo Technology Group traded as low as $161.95 and last traded at $165.22. Approximately 29,619,503 shares traded hands during mid-day trading, an increase of 303% from the average daily volume of 7,341,942 shares. The stock had previously closed at $206.63.

A number of other analysts have also recently commented on CRDO. The Goldman Sachs Group restated a “buy” rating and set a $250.00 target price on shares of Credo Technology Group in a report on Tuesday, June 2nd. Barclays lifted their price target on shares of Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a research report on Monday, July 20th. Stifel Nicolaus boosted their price objective on shares of Credo Technology Group from $250.00 to $350.00 and gave the stock a “buy” rating in a research note on Monday, June 22nd. TD Cowen upped their price objective on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock a “buy” rating in a report on Tuesday, August 18th. Finally, Rosenblatt Securities raised their target price on shares of Credo Technology Group from $215.00 to $235.00 and gave the company a “neutral” rating in a research note 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 company’s stock. Based on data from MarketBeat, Credo Technology Group presently has a consensus rating of “Moderate Buy” and a consensus target price of $267.39.

Insider Transactions at Credo Technology Group

In related news, CFO Daniel W. Fleming sold 7,580 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $245.88, for a total value of $1,863,770.40. Following the transaction, the chief financial officer owned 504,708 shares in the company, valued at $124,097,603.04. The trade was a 1.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Tung Lam sold 55,441 shares of the company’s stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $213.02, for a total transaction of $11,810,041.82. Following the completion of the transaction, the chief operating officer owned 2,529,169 shares in the company, valued at approximately $538,763,580.38. The trade was a 2.15% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 435,076 shares of company stock valued at $101,043,506. Insiders own 9.06% of the company’s stock.

Key Credo Technology Group News

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 adjusted earnings of $1.20 per share. Both figures exceeded consensus estimates of $473.3 million and $1.17, respectively. Credo Technology Group Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management guided fiscal Q2 revenue to $525 million-$535 million, above the $513.8 million analyst consensus, signaling continued demand from artificial-intelligence data centers. Credo Expects Q2 Revenue of $525 Million to $535 Million
• Positive Sentiment: Optical products are emerging as a major growth driver, with fiscal 2027 optical revenue expected to exceed $600 million as active electrical cable demand expands. Credo also achieved PCIe 6.x compliance for its Toucan retimer, supporting its positioning in next-generation AI and high-performance computing infrastructure. Credo Q1 Earnings Call Highlights Optics as the Next Growth Engine
• Neutral Sentiment: Analysts remain broadly constructive but trimmed some targets: JPMorgan lowered its target to $310 while maintaining an Overweight rating, and Bank of America cut its target to $275 while retaining Buy. Rosenblatt raised its target to $235 but kept a Neutral rating.
• Negative Sentiment: The earnings beat was overshadowed by shrinking margins and rising expenses, raising concerns that rapid growth may be becoming more costly to sustain. Why Is Credo Technology Stock Sinking Wednesday?
• Negative Sentiment: After a major year-to-date rally, investors appear to be taking profits and demanding results above already-high expectations. The stock also fell below its 200-day moving average, a negative technical signal that may intensify selling. Valuation, customer concentration and execution risks surrounding the optical ramp remain additional concerns. Credo Breaks Below 200-Day Moving Average After Earnings

Institutional Investors Weigh In On Credo Technology Group

A number of institutional investors have recently made changes to their positions in CRDO. Reflection Asset Management bought a new position in shares of Credo Technology Group during the 4th quarter valued at $25,000. Acumen Wealth Advisors LLC bought a new stake in shares of Credo Technology Group in the fourth quarter worth $25,000. Orion Capital Management LLC purchased a new stake in Credo Technology Group during the second quarter valued at $27,000. AlphaCentric Advisors LLC purchased a new stake in Credo Technology Group during the first quarter valued at $33,000. Finally, Van ECK Associates Corp bought a new position in Credo Technology Group in the fourth quarter valued at about $37,000. Hedge funds and other institutional investors own 80.46% of the company’s stock.

Credo Technology Group Stock Down 20.0%

The company has a market cap of $31.05 billion, a P/E ratio of 66.62, a P/E/G ratio of 1.02 and a beta of 3.22. The business has a fifty day simple moving average of $235.81 and a two-hundred day simple moving average of $188.53.

Credo Technology Group (NASDAQ:CRDO) last released its quarterly earnings results 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 business had revenue of $479.00 million during the quarter, compared to the consensus estimate of $473.30 million. During the same period in the previous year, the company posted $0.52 EPS. The business’s quarterly revenue was up 114.7% compared to the same quarter last year. On average, equities analysts predict that Credo Technology Group Holding Ltd. will post 4.89 EPS for the current fiscal year.

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.