Credo Technology Group (NASDAQ:CRDO) Trading Down 1.4% – Should You Sell?

Credo Technology Group Holding Ltd. (NASDAQ:CRDO)’s stock price was down 1.4% during trading on Wednesday . The stock traded as low as $259.72 and last traded at $268.2260. 6,505,885 shares changed hands during trading, a decline of 14% from the average daily volume of 7,577,122 shares. The stock had previously closed at $272.01.

Key Stories Impacting Credo Technology Group

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

• Positive Sentiment: Evercore ISI initiated coverage on Credo Technology with an Outperform rating and a $325 price target, saying the company could benefit from expanding demand for 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 reiterated a Buy rating, while Roth MKM also maintained a Buy stance. Benzinga report on Bank of America price target increase
• Positive Sentiment: Credo was also highlighted on Zacks’ Strong Buy growth list, reinforcing the view that earnings momentum and AI exposure remain attractive to growth investors. Best Growth Stocks to Buy for June 23rd
• Positive Sentiment: Brown Capital Management said it owns CRDO because of its multiple durable growth drivers, suggesting institutional confidence in the company’s long-term AI connectivity opportunity. The Brown Capital Management Small Company Fund Picked Credo Technology (CRDO) Amid Multiple Durable Growth Drivers
• Neutral Sentiment: Some market commentary continues to frame Credo as a strong AI infrastructure winner, which helps explain why the stock has been trading near record levels. Credo Technologies Accelerates AI—Its Stock Price Will Follow
• Negative Sentiment: A separate article flagged replacement risk concerns, implying some investors worry Credo’s products could face competitive displacement over time. Credo Technology (CRDO) Slid Amid Replacement Risk Concerns
• Negative Sentiment: One Seeking Alpha piece took the opposite view and issued a sell downgrade, adding a note of caution to the otherwise bullish analyst backdrop. Credo Is Not Micron; Sell (Rating Downgrade)

Analyst Ratings Changes

A number of research firms recently commented on CRDO. Rosenblatt Securities lifted their price target on Credo Technology Group from $175.00 to $215.00 and gave the stock a “neutral” rating in a report on Tuesday, June 2nd. Evercore began coverage on Credo Technology Group in a research note on Monday. They issued an “outperform” rating and a $325.00 price objective on the stock. Rothschild & Co Redburn assumed coverage on Credo Technology Group in a research note on Friday, May 1st. They set a “buy” rating and a $206.00 target price for the company. Needham & Company LLC boosted their target price on Credo Technology Group from $220.00 to $275.00 and gave the stock a “buy” rating in a report on Monday, June 1st. Finally, Weiss Ratings raised Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, May 26th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $263.11.

Credo Technology Group Stock Performance

The company’s fifty day simple moving average is $206.78 and its two-hundred day simple moving average is $155.42. The stock has a market capitalization of $50.02 billion, a P/E ratio of 108.16, a PEG ratio of 1.59 and a beta of 3.22.

Credo Technology Group (NASDAQ:CRDO) last issued its quarterly earnings data on Monday, June 1st. The company reported $1.16 earnings per share (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%.The business’s revenue was up 157.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.20 earnings per share. On average, research analysts predict that Credo Technology Group Holding Ltd. will post 4.84 earnings per share for the current fiscal year.

Insider Buying and Selling at Credo Technology Group

In other news, CTO Chi Fung Cheng sold 27,500 shares of Credo Technology Group stock in a transaction on Friday, April 10th. The stock was sold at an average price of $118.25, for a total transaction of $3,251,875.00. Following the completion of the sale, the chief technology officer owned 6,134,870 shares of the company’s stock, valued at approximately $725,448,377.50. This trade represents a 0.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 completion of the transaction, the chief financial officer owned 501,873 shares in the company, valued at $125,207,276.04. This trade represents a 7.38% decrease in their ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 389,384 shares of company stock valued at $70,041,518 in the last ninety days. 11.84% of the stock is currently owned by corporate insiders.

Institutional Trading of Credo Technology Group

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Crewe Advisors LLC increased its holdings in shares of Credo Technology Group by 163.1% during the fourth quarter. Crewe Advisors LLC now owns 171 shares of the company’s stock worth $25,000 after purchasing an additional 106 shares during the period. Reflection Asset Management bought a new stake in shares of Credo Technology Group in the fourth quarter valued at approximately $25,000. Acumen Wealth Advisors LLC bought a new stake in shares of Credo Technology Group in the fourth quarter valued at approximately $25,000. Flagship Harbor Advisors LLC acquired a new stake in Credo Technology Group during the fourth quarter worth approximately $32,000. Finally, AlphaCentric Advisors LLC bought a new position in Credo Technology Group during the 1st quarter worth $33,000. 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.