Credo Technology Group (NASDAQ:CRDO) Stock Price Down 10.1% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) fell 10.1% on Tuesday . The company traded as low as $265.53 and last traded at $272.01. Approximately 10,321,867 shares changed hands during mid-day trading, an increase of 36% from the average session volume of 7,571,133 shares. The stock had previously closed at $302.52.

Credo Technology Group News Roundup

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

• Positive Sentiment: Evercore ISI initiated coverage on Credo Technology Group with an Outperform rating and a $325 price target, citing expanding opportunity in optical AI connectivity. Credo Technology (CRDO) Starts With Outperform Rating as Optical AI Connectivity Opportunity Expands
• Positive Sentiment: Bank of America raised its price target on CRDO to $340 from $252 and kept a Buy rating, signaling additional upside confidence. Credo Technology Group had its price target raised by Bank of America Corporation from $252.00 to $340.00.
• Positive Sentiment: Credo Technology Group was added to Zacks’ Rank #1 (Strong Buy) growth stocks list, reinforcing the stock’s growth profile. Best Growth Stocks to Buy for June 25th
• Positive Sentiment: Recent coverage highlighted Credo’s 1.6T connectivity ramp and fiscal Q4 revenue growth of 157% year over year, underscoring rapid AI-data-center expansion. How Credo Technology Group’s (CRDO) 1.6T Connectivity Ramp Is Feeding Its AI Data-Center Growth
• Neutral Sentiment: Some investor commentary noted ongoing concerns about replacement risk and valuation, suggesting the stock could remain volatile even amid strong growth expectations. Credo Technology (CRDO) Slid Amid Replacement Risk Concerns
• Neutral Sentiment: Another note gave Credo a Sell downgrade, reflecting a more cautious view that may temper enthusiasm around the recent rally. Credo Is Not Micron; Sell (Rating Downgrade)

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on CRDO. Evercore began coverage on Credo Technology Group in a research report on Monday. They set an “outperform” rating and a $325.00 price target on the stock. Zacks Research upgraded Credo Technology Group from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 19th. Needham & Company LLC raised their price target on Credo Technology Group from $220.00 to $275.00 and gave the stock a “buy” rating in a research report on Monday, June 1st. Bank of America boosted their price target on Credo Technology Group from $252.00 to $340.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Rosenblatt Securities upped their price objective on shares of Credo Technology Group from $175.00 to $215.00 and gave the stock a “neutral” rating in a research report on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus target price of $263.11.

Credo Technology Group Stock Down 1.4%

The firm has a 50 day simple moving average of $209.46 and a two-hundred day simple moving average of $156.04. The stock has a market capitalization of $50.02 billion, a P/E ratio of 108.16, a PEG ratio of 1.43 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO) last posted its quarterly earnings results on Monday, June 1st. The company reported $1.16 EPS for the quarter, topping analysts’ consensus estimates of $1.02 by $0.14. The company had revenue of $437.00 million during the quarter, compared to analysts’ expectations of $431.80 million. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.Credo Technology Group’s revenue was up 157.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.20 EPS. On average, research analysts predict that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current year.

Insider Activity at Credo Technology Group

In other news, CFO Daniel W. Fleming sold 40,000 shares of the company’s stock in a transaction on 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 completion of the transaction, the chief financial officer directly owned 501,873 shares in the company, valued at approximately $125,207,276.04. This represents a 7.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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, CEO William Joseph Brennan sold 54,984 shares of the stock in a transaction on Friday, June 5th. The shares were sold at an average price of $218.57, for a total value of $12,017,852.88. Following the completion of the transaction, the chief executive officer owned 367,327 shares of the company’s stock, valued at $80,286,662.39. The trade was a 13.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 389,384 shares of company stock worth $70,041,518 in the last ninety days. Insiders own 11.84% of the company’s stock.

Hedge Funds Weigh In On Credo Technology Group

Several large investors have recently bought and sold shares of the company. Pacer Advisors Inc. increased its stake in shares of Credo Technology Group by 32.6% in the first quarter. Pacer Advisors Inc. now owns 22,736 shares of the company’s stock valued at $2,134,000 after buying an additional 5,585 shares during the period. PVG Asset Management Corp acquired a new stake in Credo Technology Group during the 1st quarter worth approximately $84,000. Carmignac Gestion bought a new stake in Credo Technology Group during the 1st quarter worth approximately $34,216,000. NewEdge Advisors LLC increased its position in Credo Technology Group by 24.1% in the 1st quarter. NewEdge Advisors LLC now owns 5,883 shares of the company’s stock valued at $552,000 after acquiring an additional 1,141 shares during the period. Finally, Glenmede Trust Co. NA raised its stake in shares of Credo Technology Group by 2.0% during the first quarter. Glenmede Trust Co. NA now owns 5,706 shares of the company’s stock valued at $536,000 after acquiring an additional 114 shares during the last quarter. 80.46% of the stock is currently owned by institutional investors.

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.