Credo Technology Group (NASDAQ:CRDO) Stock Price Down 9.7% – Here’s Why

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares fell 9.7% during mid-day trading on Wednesday . The company traded as low as $121.21 and last traded at $121.6640. 2,570,150 shares changed hands during trading, a decline of 63% from the average session volume of 6,995,039 shares. The stock had previously closed at $134.72.

Trending Headlines about Credo Technology Group

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

• Positive Sentiment: Credo reported preliminary Q3 FY2026 revenue of $404–$408M, well above consensus, and updated Q4 revenue guidance — the beat is the primary catalyst for recent buying interest. Read More.
• Positive Sentiment: Management has raised near-term and multi‑year revenue targets (Q3 guidance implying ~200% Y/Y and commentary pointing toward FY2027 revenue near $2B with very high net margins), which supports a much larger TAM from AI/hyperscale interconnect demand. Read More.
• Positive Sentiment: Several analyst pieces upgraded the narrative or the rating/target after the beat — multiple bullish notes argue the company’s revenue and margin trajectory de‑risks the valuation and supports fresh long positions. Read More.
• Positive Sentiment: Sell‑side support: Needham reaffirmed a Buy rating with a $220 target, signaling strong analyst conviction and giving the stock more runway on upgrades. Read More.
• Neutral Sentiment: Market reaction: media and market sites note above‑average volume and a sizeable intraday rally after hours/premarket on the results — this confirms broad attention but also raises near‑term volatility risk. Read More.
• Neutral Sentiment: Operational/PR items: Credo scheduled its Q3 results conference call and continues to provide updated guidance ahead of formal earnings — useful for confirming the preliminary figures but not new fundamental news. Read More.
• Negative Sentiment: Profit‑taking / valuation noise: after the rally shares have pulled back today, and some commentators note that rapid estimate upgrades may already be partially priced in — near‑term upside could be limited and volatility elevated. Read More.
• Negative Sentiment: Short interest data reported recently is inconsistent/odd (shows zero shares), which can create misleading narratives about short covering or squeeze dynamics — treat that data with caution. (internal filings/official exchanges should be checked)

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on CRDO. TD Cowen reaffirmed a “buy” rating on shares of Credo Technology Group in a research report on Tuesday, December 2nd. Rosenblatt Securities began coverage on Credo Technology Group in a research note on Wednesday, January 21st. They issued a “neutral” rating and a $170.00 price objective for the company. Bank of America boosted their price target on shares of Credo Technology Group from $165.00 to $240.00 and gave the stock a “buy” rating in a report on Tuesday, December 2nd. Susquehanna lifted their price objective on shares of Credo Technology Group from $165.00 to $175.00 and gave the stock a “positive” rating in a research report on Wednesday, October 22nd. Finally, Barclays restated an “overweight” rating and set a $260.00 price target on shares of Credo Technology Group in a research note on Thursday, January 15th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $212.69.

Credo Technology Group Trading Down 7.7%

The business’s fifty day simple moving average is $143.01 and its 200-day simple moving average is $142.92. The firm has a market cap of $22.47 billion, a P/E ratio of 109.38 and a beta of 2.65.

Credo Technology Group (NASDAQ:CRDO) last posted its earnings results on Monday, December 1st. The company reported $0.67 earnings per share for the quarter, beating analysts’ consensus estimates of $0.49 by $0.18. The business had revenue of $268.03 million during the quarter, compared to analyst estimates of $234.99 million. Credo Technology Group had a return on equity of 25.28% and a net margin of 26.63%.The company’s quarterly revenue was up 272.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.07 EPS. As a group, research analysts expect that Credo Technology Group Holding Ltd. will post 0.13 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Credo Technology Group news, CTO Chi Fung Cheng sold 27,500 shares of the firm’s stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $127.37, for a total value of $3,502,675.00. Following the sale, the chief technology officer owned 6,299,870 shares of the company’s stock, valued at $802,414,441.90. This trade represents a 0.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Sylvia Acevedo sold 2,200 shares of Credo Technology Group stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $159.18, for a total value of $350,196.00. Following the sale, the director owned 18,545 shares of the company’s stock, valued at approximately $2,951,993.10. This trade represents a 10.60% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 917,976 shares of company stock valued at $136,567,647 in the last ninety days. 11.84% of the stock is owned by insiders.

Institutional Investors Weigh In On Credo Technology Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Savant Capital LLC grew its stake in Credo Technology Group by 0.7% in the 3rd quarter. Savant Capital LLC now owns 9,914 shares of the company’s stock worth $1,444,000 after buying an additional 68 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its position 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. Illinois Municipal Retirement Fund increased its stake in Credo Technology Group by 0.6% in the third quarter. Illinois Municipal Retirement Fund now owns 15,783 shares of the company’s stock valued at $2,298,000 after acquiring an additional 91 shares during the last quarter. Versant Capital Management Inc increased its stake in Credo Technology Group by 18.0% in the third quarter. Versant Capital Management Inc now owns 663 shares of the company’s stock valued at $97,000 after acquiring an additional 101 shares during the last quarter. Finally, Spirepoint Private Client LLC lifted its stake in Credo Technology Group by 6.6% during the fourth quarter. Spirepoint Private Client LLC now owns 1,688 shares of the company’s stock worth $243,000 after purchasing an additional 105 shares during the last quarter. 80.46% of the stock is owned by hedge funds and other 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.